ADJUSTMENT OF PRESUMPTIVELY ACCEPTABLE CREDIT LIFEINSURANCE AND CREDIT ACCIDENT AND HEALTH INSURANCE PREMIUM RATES

STATE OF NEW MEXICO OFFICE OF SUPERINTENDENT OF INSURANCE SUPERINTENDENT OF INSURANCE DEPUTY SUPERINTENDENT Alice T. Kane Timothy Vigil SANTA FE LOCATION (MAIN OFFICE) (OVERNIGHT/SECOND DAY MAIL ONLY) 1120 Paseo De Peralta, 4th Floor Santa Fe, New Mexico 87501 (USPS MAIL ONLY) P O Box 1689 Santa Fe, New Mexico 87504 Main Phone: (505) 827-4601 | Toll Free: (855) 4 - ASK - OSI www.osi.state.nm.us (UPDATED) BULLETIN 2025-002 July 23, 2025 TO: ALL CREDIT LIFE AND CREDIT ACCIDENT AND HEALTH INSURERS RE: ADJUSTMENT OF PRESUMPTIVELY ACCEPTABLE CREDIT LIFE INSURANCE AND CREDIT ACCIDENT AND HEALTH INSURANCE PREMIUM RATES THE FOLLOWING BULLETIN is updated and issued pursuant to NMSA 1978, Sections 59A-2-8 and 59A-2-10 and 13.1.2 NMAC, 13.18.2.18, and 13.18.2.26 NMAC. This update is being issued to allow a sixty-day (60-day) time period from the date of the effective date of July 1, 2025 for implementation of the new rates. The new rates shall be implemented on or before September 1, 2025. Please note: Additional filing instructions appear on page 6. 13.18.2.18 and 13.18.2.26 NMAC allows the Superintendent to set and adjust premium rates for Credit Life and Credit Accident and Health benefits as needed. Presumptively Acceptable Credit Life Insurance Premiums (prima facie): The Superintendent may presume that the benefits of a credit life insurance policy are reasonable in relation to the premium charged if the premium rate for death benefits as filed does not exceed an amount equal, or actuarially equivalent, to the following rates, which are the same prima facie rates that are currently in effect and that shall remain effective as of July 1, 2025: U P D A T E D B U L L E T I N 2 0 2 5 - 0 0 2 P a g e | 2 SANTA FE LOCATION (MAIN OFFICE) (OVERNIGHT/SECOND DAY MAIL ONLY) 1120 Paseo De Peralta, 4th Floor Santa Fe, New Mexico 87501 (USPS MAIL ONLY) P O Box 1689 Santa Fe, New Mexico 87504 Main Phone: (505) 827-4601 | Toll Free: (855) 4 - ASK - OSI www.osi.state.nm.us Relative to NMAC: Presumptively Acceptable Credit Accident and Health Insurance Premiums (prima facie rates): The Superintendent may presume that the benefits of a credit accident and health insurance policy are reasonable in relation to the premium charged if the premium rate for accident and health benefits as filed does not exceed an amount equal, or actuarially equivalent, to the following rates, which are effective July 1, 2025: 13.18.2.18(A) Coverage on a single life provided on the outstanding indebtedness basis: $0.39 per month per $1,000.00 of outstanding balance indebtedness 13.18.2.18(B) Coverage on a single life on the single premium basis: 13.18.2.18(B)(1) $0.25 per year of coverage per $100.00 of initial insured indebtedness for all credit transactions when the insured indebtedness is payable in substantially equal monthly installments during the term of coverage; and 13.18.2.18(B)(2) $0.45 per year of coverage per $100.00 of level life insurance where the amount of insured indebtedness remains level during the term of coverage and is repayable in a single sum at the end of the term. 13.18.2.18(C) Coverage on joint lives on the outstanding indebtedness basis: $0.57 per month per $1,000.00 of outstanding balance indebtedness. 13.18.2.18(D) Coverage for joint lives on the single premium basis: 13.18.2.18(D)(1) $0.36 per year of coverage per $100.00 of initial insured indebtedness for all credit transactions when the insured indebtedness is repayable in substantially equal monthly installments during the term of coverage; and 13.18.2.18(D)(2) $0.67 per year of coverage per $100.00 of level life insurance where the amount of insured indebtedness remains level during the term of coverage and is repayable in a single sum at the end of the term. 13.18.2.20(A) Composite Single Joint Outstanding Balance Rate (prima facie rates): COB = $0.39 (PSA) - $0.57 (PJA), where (1) COB = composite outstanding balance life rate per $1,000 per month; (2) PSA = percentage of open-end accounts held by a single person expressed as a decimal fraction (for the first year, use all accounts; for subsequent years, use insured accounts); (3) PJA = percentage of revolving accounts held jointly expressed as a decimal fraction (for the first year, use all accounts; for subsequent years, use insured accounts). U P D A T E D B U L L E T I N 2 0 2 5 - 0 0 2 P a g e | 3 SANTA FE LOCATION (MAIN OFFICE) (OVERNIGHT/SECOND DAY MAIL ONLY) 1120 Paseo De Peralta, 4th Floor Santa Fe, New Mexico 87501 (USPS MAIL ONLY) P O Box 1689 Santa Fe, New Mexico 87504 Main Phone: (505) 827-4601 | Toll Free: (855) 4 - ASK - OSI www.osi.state.nm.us Relative to Subsection A of NMAC13.18.2.26: Single Premium Rate per $100 of Initial Insured Indebtedness Original Number of Equal Monthly Installments Benefits Payable After the 14th Day of Disability Benefits Payable After the 30th Day of Disability Retroactive to 1st Day Non- Retroactive Retroactive to 1st Day Non- Retroactive 3 0.28 0.21 4 0.36 0.26 5 0.44 0.32 6 0.49 0.37 0.36 0.25 7 0.53 0.42 0.39 0.28 8 0.55 0.45 0.41 0.31 9 0.57 0.47 0.45 0.34 10 0.59 0.49 0.47 0.36 11 0.60 0.50 0.49 0.37 12 0.63 0.52 0.50 0.40 13 0.64 0.54 0.52 0.41 14 0.66 0.55 0.54 0.44 15 0.67 0.57 0.55 0.45 16 0.69 0.58 0.57 0.47 17 0.72 0.59 0.59 0.49 18 0.73 0.60 0.60 0.50 19 0.75 0.61 0.63 0.52 20 0.78 0.63 0.65 0.53 21 0.80 0.63 0.66 0.54 22 0.81 0.65 0.69 0.54 23 0.83 0.66 0.72 0.55 24 0.85 0.66 0.73 0.56 25 0.87 0.67 0.73 0.57 26 0.89 0.69 0.76 0.58 27 0.90 0.70 0.78 0.59 28 0.92 0.72 0.80 0.59 29 0.94 0.73 0.81 0.60 30 0.96 0.73 0.82 0.62 31 0.98 0.76 0.84 0.63 32 0.99 0.78 0.87 0.65 33 1.02 0.81 0.89 0.66 34 1.03 0.81 0.90 0.66 35 1.06 0.82 0.91 0.68 36 1.07 0.84 0.93 0.70 37 1.08 0.86 0.95 0.72 U P D A T E D B U L L E T I N 2 0 2 5 - 0 0 2 P a g e | 4 SANTA FE LOCATION (MAIN OFFICE) (OVERNIGHT/SECOND DAY MAIL ONLY) 1120 Paseo De Peralta, 4th Floor Santa Fe, New Mexico 87501 (USPS MAIL ONLY) P O Box 1689 Santa Fe, New Mexico 87504 Main Phone: (505) 827-4601 | Toll Free: (855) 4 - ASK - OSI www.osi.state.nm.us 38 1.09 0.88 0.96 0.73 39 1.10 0.89 0.98 0.73 40 1.11 0.90 0.98 0.75 41 1.13 0.90 0.99 0.77 42 1.14 0.92 1.00 0.79 43 1.14 0.93 1.02 0.81 44 1.15 0.95 1.03 0.81 45 1.16 0.96 1.03 0.83 46 1.17 0.98 1.05 0.85 47 1.17 0.98 1.06 0.87 48 1.18 0.99 1.07 0.89 49 1.19 1.00 1.08 0.90 50 1.20 1.01 1.09 0.92 51 1.21 1.02 1.10 0.94 52 1.22 1.03 1.11 0.96 53 1.22 1.03 1.12 0.97 54 1.24 1.05 1.14 0.99 55 1.25 1.06 1.14 1.00 56 1.25 1.07 1.15 1.02 57 1.26 1.08 1.16 1.03 58 1.26 1.08 1.17 1.06 59 1.27 1.09 1.18 1.07 60 1.28 1.10 1.19 1.08 61 1.30 1.11 1.20 1.10 62 1.30 1.12 1.21 1.10 63 1.31 1.13 1.22 1.11 64 1.32 1.14 1.22 1.12 65 1.32 1.14 1.24 1.13 66 1.33 1.15 1.25 1.14 67 1.35 1.17 1.25 1.14 68 1.35 1.17 1.26 1.15 69 1.36 1.17 1.26 1.16 70 1.37 1.18 1.28 1.17 71 1.38 1.19 1.29 1.17 72 1.38 1.20 1.30 1.17 73 1.39 1.21 1.31 1.18 74 1.39 1.22 1.32 1.19 75 1.40 1.22 1.32 1.20 76 1.42 1.23 1.33 1.21 77 1.43 1.24 1.35 1.22 78 1.44 1.25 1.35 1.22 79 1.45 1.25 1.37 1.23 80 1.46 1.26 1.38 1.24 81 1.46 1.27 1.38 1.25 U P D A T E D B U L L E T I N 2 0 2 5 - 0 0 2 P a g e | 5 SANTA FE LOCATION (MAIN OFFICE) (OVERNIGHT/SECOND DAY MAIL ONLY) 1120 Paseo De Peralta, 4th Floor Santa Fe, New Mexico 87501 (USPS MAIL ONLY) P O Box 1689 Santa Fe, New Mexico 87504 Main Phone: (505) 827-4601 | Toll Free: (855) 4 - ASK - OSI www.osi.state.nm.us 82 1.46 1.28 1.39 1.25 83 1.48 1.30 1.40 1.26 81 1.49 1.30 1.41 1.26 85 1.50 1.31 1.42 1.27 86 1.51 1.32 1.44 1.28 87 1.52 1.32 1.44 1.30 88 1.53 1.33 1.45 1.30 89 1.53 1.34 1.46 1.31 90 1.54 1.35 1.46 1.32 91 1.54 1.35 1.47 1.32 92 1.54 1.36 1.49 1.33 93 1.55 1.38 1.50 1.34 94 1.57 1.38 1.51 1.35 95 1.58 1.39 1.53 1.36 96 1.59 1.39 1.53 1.37 97 1.60 1.40 1.54 1.38 98 1.61 1.42 1.54 1.38 99 1.62 1.43 1.54 1.39 100 1.62 1.44 1.55 1.39 101 1.62 1.44 1.57 1.40 102 1.63 1.45 1.59 1.42 103 1.64 1.46 1.60 1.43 104 1.65 1.46 1.61 1.44 105 1.66 1.46 1.62 1.45 106 1.67 1.48 1.62 1.46 107 1.68 1.49 1.62 1.46 108 1.69 1.50 1.63 1.46 109 1.70 1.51 1.65 1.48 110 1.71 1.52 1.66 1.49 111 1.71 1.53 1.67 1.50 112 1.71 1.54 1.68 1.51 113 1.72 1.54 1.69 1.53 114 1.73 1.54 1.70 1.53 115 1.74 1.55 1.71 1.54 116 1.76 1.56 1.71 1.54 117 1.76 1.57 1.72 1.55 118 1.78 1.59 1.73 1.56 119 1.79 1.60 1.74 1.58 120 1.79 1.61 1.75 1.59 The rates referenced above are effective on July 1, 2025. U P D A T E D B U L L E T I N 2 0 2 5 - 0 0 2 P a g e | 6 SANTA FE LOCATION (MAIN OFFICE) (OVERNIGHT/SECOND DAY MAIL ONLY) 1120 Paseo De Peralta, 4th Floor Santa Fe, New Mexico 87501 (USPS MAIL ONLY) P O Box 1689 Santa Fe, New Mexico 87504 Main Phone: (505) 827-4601 | Toll Free: (855) 4 - ASK - OSI www.osi.state.nm.us Relative to NMAC: 13.18.2.26(B) A monthly premium of $0.09 per $100 of outstanding balance may be presumed reasonable for a disability benefit which consists of a lump sum payment of the amount of indebtedness covered at the beginning of disability, such payment to be made after disability has continued for 90 consecutive days. A daily benefit does not apply to this coverage. 13.18.2.26(D) In credit accident and health insurance sold in connection with open-end transactions or monthly closed-end transactions, the superintendent may presume (subject, however, to a rebuttal of the presumption) that the benefits are reasonable in relation to the premium charged if the premium rate schedule for such accident and health insurance transactions does not exceed an amount equal to, or actuarially consistent with, the following rates: 13.18.2.26(D)(1) benefits payable after the 14th day of disability 13.18.2.26(D)(1)(a) retroactive to first day: $0.09 per month per $100 of outstanding balance insured indebtedness; 13.18.2.26(D)(1)(b) non-retroactive: $0.09 per month per $100 of outstanding balance insured indebtedness; 13.18.2.26(D)(2) benefits payable after the 30th day of disability: 13.18.2.26(D)(2)(a) retroactive to first day: $0.09 per month per $100 of outstanding balance insured indebtedness; 13.l8.2.26(D)(2)(b) non-retroactive: $0.08 per month per $100 of outstanding balance insured indebtedness; Rate Filing Approval If an insurer adopts the prima facie rates outlined in this bulletin, the insurer is not required to submit all rate materials required for every filing. However, the insurer must submit a “Rate” filing (in SERFF) that contains an attestation, signed by an actuary, confirming that the insurer adopted the prima facia rates reflected in this bulletin. The insurer must also submit the rate schedules required under 13.18.2.36 NMAC. If an insurer does not adopt the prima facie rates outlined in this bulletin, the insurer must submit all rate materials for OSI’s review in a “Rate” filing (in SERFF). U P D A T E D B U L L E T I N 2 0 2 5 - 0 0 2 P a g e | 7 SANTA FE LOCATION (MAIN OFFICE) (OVERNIGHT/SECOND DAY MAIL ONLY) 1120 Paseo De Peralta, 4th Floor Santa Fe, New Mexico 87501 (USPS MAIL ONLY) P O Box 1689 Santa Fe, New Mexico 87504 Main Phone: (505) 827-4601 | Toll Free: (855) 4 - ASK - OSI www.osi.state.nm.us Any person aggrieved by this Bulletin may request a hearing before the Superintendent of Insurance in accordance with NMSA 1978, Section 59A-4-15. If you have questions regarding this Bulletin, please contact the Life and Health Bureau life.health@osi.nm.gov. THIS UPDATED BULLETIN IS ISSUED this 23rd day of July, 2025. __________________________________ ALICE T. KANE Superintendent of Insurance