Statutes, codes, and regulations
New Mexico Administrative Code
Title 13 - INSURANCEChapter 9 - LIFE INSURANCE AND ANNUITIES
Part 3 - VARIABLE ANNUITY CONTRACTS
Section 13.9.3.20 - NET CONSIDERATION PERCENTAGES

N.M. Admin. Code § 13.9.3.20

Download
PDF
Current through Register Vol. 35, No. 24, December 23, 2024
Section 13.9.3.20 - NET CONSIDERATION PERCENTAGES

The percentages of net considerations used to define the minimum nonforfeiture amount in 13 nmac 9.3.19 [now 13.9.3.19 NMAC] shall meet the requirements of this section.

A. With respect to contracts providing for periodic considerations, the net considerations for a given contract year used to define the minimum nonforfeiture amount shall be an amount not less than zero and shall be equal to the corresponding gross considerations credited to the contract during that contract year less an annual contract charge of $30 and less a collection charge of $1.25 per consideration credited to the contract during that contract year less any charges for premium taxes. The percentages of net considerations shall be sixty-five percent (65%) for the first contract year and eighty-seven and one-half percent (87.5%) for the second and later contract years. Notwithstanding the provisions of the preceding sentence, the percentage shall be sixty-five percent (65%) of the portion of the total net consideration for any renewal contract year which exceeds by not more than two times the sum of those portions of the net considerations in all prior contract years for which the percentage was sixty-five percent (65%).
B. With respect to contracts providing for a single consideration, the net consideration used to define the minimum nonforfeiture amount shall be the gross consideration less a contract charge of $75 and less any charge for premium taxes. The percentage of the net consideration shall be ninety percent (90%).
C. The annual contract charge of $30, the collection charge of $1.25 per collection, and the single consideration contract charge of $75 referred to in 13 NMAC 9.3.20.1 and 9.3.20.2 [now Subsections A and B of 13.9.3.20 NMAC], will be adjusted to reflect changes in the consumer price index in accordance with 13 nmac 9.3.21 [now 13.9.3.21 NMAC].

N.M. Admin. Code § 13.9.3.20

7/1/97; Recompiled 11/30/01