SENATE MEMORIAL 48

47th legislature - STATE OF NEW MEXICO - second session, 2006

INTRODUCED BY

Michael S. Sanchez

A MEMORIAL

REQUESTING THE INSURANCE DIVISION OF THE PUBLIC REGULATION COMMISSION TO LEAD A STUDY ON THE EFFECT OF UNINSURED AND UNDERINSURED MOTORISTS ON PEOPLE WHO ARE INJURED IN AUTOMOBILE ACCIDENTS AND AN ANALYSIS OF POSSIBLE METHODS FOR DEALING WITH THIS PROBLEM.

     WHEREAS, according to the insurance research council, New Mexico has the second-highest rate of uninsured motorists in the United States, estimated at thirty percent; and

     WHEREAS, many drivers ignore motor vehicle insurance requirements, cannot afford to carry insurance or carry insufficient insurance; and

     WHEREAS, people who are injured in an automobile accident by a motorist who is uninsured must rely on their own health insurance coverage to pay for the injuries that result from that accident; and

     WHEREAS, treatment for these injuries often requires specialized and long-term care, and the medical and rehabilitative costs arising from these injuries can be substantial; and

     WHEREAS, many people in New Mexico do not have health insurance coverage or have insurance that does not cover the full costs of treating these injuries; and

     WHEREAS, the constitution of New Mexico prohibits state contributions to private individuals to help offset personal monetary losses due to such accidents and injuries, but models for providing such monetary assistance may be possible under certain circumstances;

     NOW, THEREFORE, BE IT RESOLVED BY THE SENATE OF THE STATE OF NEW MEXICO that the insurance division of the public regulation commission be requested to lead a study on the effect of uninsured and underinsured motorists on people who are injured in automobile accidents and an analysis of possible methods for dealing with this problem; and

     BE IT FURTHER RESOLVED that the legislative finance committee and the risk management division of the general services department be requested to participate in the study; and

     BE IT FURTHER RESOLVED that the New Mexico mortgage finance authority and the land title trust fund be examined as possible models for funding damages of people injured in automobile accidents by uninsured motorists; and

     BE IT FURTHER RESOLVED that the findings and recommendations of the study be presented to the appropriate interim legislative committee no later than November 2006; and

     BE IT FURTHER RESOLVED that copies of this memorial be transmitted to the insurance division of the public regulation commission, the legislative finance committee and the risk management division of the general services department.

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