For the purposes of the Insurance Code:

A. an "annuity" is a contract under which obligation is assumed by the issuer to make periodic payments for a specific term or terms where the making or continuance of all or some such payments or the amount of any such payment is dependent upon continuance of human life, except payments made pursuant to optional modes of settlement under authority of Section 108 [59A-7-2 NMSA 1978] ("life" insurance defined) of the Insurance Code. Such a contract which includes extra benefits of the kinds set forth in Section 108 ("life" insurance defined) or Section 109 [59A-7-3 NMSA 1978] ("health" insurance defined) of the Insurance Code shall nevertheless be deemed to be an annuity if such extra benefits constitute a subsidiary or incidental part of the entire contract; and

B. "industrial life insurance" is that form of life insurance written under policies in face amount of two thousand five hundred dollars ($2,500) or less, and bearing the words "industrial policy" or "weekly premium policy" or words of similar import imprinted on the face thereof as part of descriptive matter, and under which premiums are payable monthly or more often.

History: Laws 1984, ch. 127, § 367.

Applicability of article. — Guaranteed investment contracts were not annuities entitled to coverage under the Life and Health Insurance Guaranty Law because they did not provide periodic payments dependent on the continuation of human life. Krahling v. First Trust Nat'l Ass'n, 1997-NMCA-082, 123 N.M. 685, 944 P.2d 914, cert. denied, 123 N.M. 446, 942 P.2d 189.