N.M. Code R. § 13.18.2.41

Current through Register Vol. 35, No. 11, June 11, 2024

Section 13.18.2.41 - CLAIM RESERVES

A. The insurer shall set up adequate liabilities for claims for credit life and credit accident and health insurance, in addition to the policy reserves already described. Such liabilities shall be based upon appropriate consideration for each of the following categories:

(1) the liability for claims which are known to be due and payable, but which have not yet been paid;

(2) the reserve for continuing disability benefits which have been reported and on which future payments will be due during the continuance of this disability;

(3) the liability for claims which have been insured but not yet reported, with benefits now due;

(4) the reserve for disability benefits which are incurred but not yet reported, and on which future payments will be due during the continuance of this disability.

B. The company may rely upon credible experience developed by its own claim experience, industry wide experience, or any other available source which produces an adequate liability for claims.

N.M. Code R. § 13.18.2.41

7/1/97; 9/1/98; 13.18.2.41 NMAC - Rn & A, 13 NMAC 18.2.41, 12/31/07