Life Insurance and Annuity Contracts

What this document is

NMSA 1978, Chapter 59A (New Mexico Insurance Code), Article 20 - Life Insurance and Annuity Contracts is a state statute published by nmonesource.com. It is one of the New Mexico documents that insurance license exam questions are written from, including new mexico life & health practice questions. This page summarizes it and points to the official version, which is the text to rely on.

Sections cited in practice questions

Each practice answer shows the exact passage it comes from. These are sections of this document that questions cite, with a short excerpt from the source text.

• NMSA 1978 ch. 59A, § 59A-20-16(A) (Incontestability; excluded or restricted coverage)

  “A clause in any life insurance policy providing that the policy shall be incontestable after a specified period shall preclude only a contest of the validity of the policy, and shall not preclude the assertion at any time of defenses based upon provisions in the policy which exclude or restrict...”

• NMSA 1978 ch. 59A, § 59A-20-4 (Grace period)

  “There shall be a provision that a grace period of thirty (30) days, or, at the option of the insurer, of one month of not less than thirty (30) days, or of four (4) weeks in the case of industrial life insurance policies the premiums for which are payable more frequently than monthly, shall be...”

• NMSA 1978 ch. 59A, § 59A-20-12 (Reinstatement)

  “There shall be a provision that unless: A. the policy has been surrendered for its cash surrender value; or B. its cash surrender value has been exhausted; or C. the paid-up term insurance, if any has expired; the policy will be reinstated at any time within three (3) years (or two (2) years in the...”

• NMSA 1978 ch. 59A, § 59A-20-7 (Misstatement of age)

  “There shall be a provision that if the age of the insured, or of any other person whose age is considered in determining the premium or benefit, has been misstated, any amount payable or benefit accruing under the policy shall be such as the premium would have purchased at the correct age or ages.”

• NMSA 1978 ch. 59A, § 59A-20-14 (Payment of claims)

  “There shall be a provision that when a policy shall become a claim by the death of the insured, settlement shall be made upon receipt of due proof of death and, at the insurer's option, surrender of the policy or proof of the interest of the claimant. If an insurer shall specify a particular period...”

• NMSA 1978, § 59A-20-9(A) (Policy loans)

  “A. There shall be a provision that after three (3) full years' premiums have been paid, and after the policy has a cash surrender value and while no premium is in default beyond the grace period for payment, the insurer will advance, on proper assignment or pledge of the policy and on the sole...”

• NMSA 1978, § 59A-20-25(B) (Limitation of liability)

  “B. A policy which contains any exclusion or restriction pursuant to Subsection A of this section shall also provide that in the event of death under the circumstances to which any such exclusion or restriction is applicable, the insurer will pay an amount not less than a reserve determined...”

• NMSA 1978, § 59A-20-26(A)(3) (Prohibited provisions)

  “A. No life insurance policy shall be delivered or issued for delivery in this state if it contains any of the following provisions: (1) a provision by which the policy purports to be issued or to take effect more than one year before the original application for the insurance was made; (2) a...”

• NMSA 1978, § 59A-20-8(A) and (B) (Dividends, participating policies)

  “Except as hereinafter provided, any dividend becoming payable shall at the option of the party entitled to elect such option be either: (1) payable in cash; or (2) applied to any one of such other dividend options as may be stated in the policy and approved by the superintendent. B. If any such...”

Practice this material

Questions about this source

More New Mexico sources

• NMSA 1978 Chapter 59A, Article 16 - Trade Practices and Frauds (59A-16-1 to 59A-16-30)State statute
• NMSA 1978, Chapter 59A (New Mexico Insurance Code), Article 23 - Group and Blanket Health Insurance ContractsState statute
• NMSA 1978, Chapter 59A (New Mexico Insurance Code), Article 21 - Group Life InsuranceState statute
• NMSA 1978, Chapter 59A (New Mexico Insurance Code), Article 42 - Life and Health Insurance Guaranty AssociationState statute
• NMSA 1978, Chapter 59A (New Mexico Insurance Code), Article 22 - Health Insurance ContractsState statute
• NMSA 1978, Chapter 59A (New Mexico Insurance Code), Article 18 - The Insurance ContractState statute
• NMSA 1978, Chapter 59A (New Mexico Insurance Code), Articles 24A and 23A - Medicare Supplements; Long-Term Care InsuranceState statute
• NMSA 1978, Chapter 59A (New Mexico Insurance Code), Articles 11, 11A, 12 and 13 - Licensing Procedures for Producers and Others; Insurance Consultants; Insurance Producers; AdjustersState statute