1. A. Joint life rates may not be charged for single life coverage, except that a composite single joint outstanding balance life rate may be used for open-end accounts where more than fifty percent of a creditor’s open-end accounts are held jointly. Such rate shall be completed as follows and will be determined by the superintendent as necessary via bulletin, by: COB = an amount of (PSA) - an amount of (PJA), where:

   1. (1) COB = composite outstanding balance life rate per $1,000 per month;
   2. (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. (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).
2. B. Composite rates shall be recomputed when the percentage of insured account jointly held drops by more than ten percentage points below the percentage used to compute the composite rate. Composite rates shall be discontinued when the percentage of insured accounts jointly held drops below fifty percent. Recomputation or discontinuance shall be effective within six months of the end of the policy year in which the changes requiring such action occurred.

[13.18.2.20 NMAC - Rp, 13.18.2.20, 3/11/2025]