New Mexico Statutes 59A-8A-3. Reserve valuation
A. For policies and contracts issued prior to the operative date of the valuation manual:
Terms Used In New Mexico Statutes 59A-8A-3
- Annuity: A periodic (usually annual) payment of a fixed sum of money for either the life of the recipient or for a fixed number of years. A series of payments under a contract from an insurance company, a trust company, or an individual. Annuity payments are made at regular intervals over a period of more than one full year.
- Contract: A legal written agreement that becomes binding when signed.
- Jurisdiction: (1) The legal authority of a court to hear and decide a case. Concurrent jurisdiction exists when two courts have simultaneous responsibility for the same case. (2) The geographic area over which the court has authority to decide cases.
- Liabilities: The aggregate of all debts and other legal obligations of a particular person or legal entity.
(1) the superintendent shall annually value, or cause to be valued, the reserve liabilities (hereinafter called reserves) for all outstanding life insurance policies and annuity and pure endowment contracts of every life insurer authorized to do business in New Mexico and that are issued on or after the operative date of Section 59A-20-31 N.M. Stat. Ann., except that, for an alien insurer, the value is limited to the alien insurer’s United States business. In calculating such reserves the superintendent may use group methods and approximate averages for fractions of a year or otherwise. In lieu of valuation of reserves herein required of a foreign or alien insurer, the superintendent may accept any valuation made, or caused to be made, by the insurance supervisory official of any state or other jurisdiction when such valuation complies with the minimum standard provided by the Standard Valuation Law;
(2) the provisions of Sections 59A-8A-6 and 59A-8A-7 N.M. Stat. Ann. apply, as appropriate, to a policy or contract that is subject to the provisions of the Standard Valuation Law and that is issued on or after the operative date of Section 59A-20-31 N.M. Stat. Ann. but prior to the operative date of the valuation manual. The provisions of Sections 59A-8A-8 and 59A-8A-9 N.M. Stat. Ann. do not apply to a policy or contract that is subject to the provisions of the Standard Valuation Law and that is issued on or after the operative date of Section 59A-20-31 N.M. Stat. Ann. but prior to the operative date of the valuation manual; and
(3) the minimum standard for the valuation of a policy or contract that is issued prior to the operative date of Section 59A-20-31 N.M. Stat. Ann. is the minimum standard provided in the laws in effect immediately prior to that date.
B. For a policy or contract that is issued on or after the operative date of the valuation manual:
(1) the superintendent shall annually value, or cause to be valued, the reserve liabilities, hereinafter called reserves, of all outstanding life insurance, annuity and pure endowment, accident and health and deposit-type contracts of a life insurer authorized to do business in New Mexico that are issued on or after the operative date of the valuation manual. In the case of a foreign or alien insurer, the superintendent may, in the alternative, accept a valuation made, or caused to be made, by the insurance supervisory official of a state or other jurisdiction if that valuation complies with the minimum standard provided in the Standard Valuation Law; and
(2) the provisions of Sections 59A-8A-8 and 59A-8A-9 N.M. Stat. Ann. apply to all policies and contracts issued on or after the operative date of the valuation manual.
C. In no event shall the aggregate reserves for all policies, contracts and benefits issued prior to the operative date of the valuation manual be less than the aggregate reserves determined by the qualified actuary to be necessary to render the opinion required by Section 59A-8A-4 N.M. Stat. Ann..