SENATE BILL 421

49th legislature - STATE OF NEW MEXICO - first session, 2009

INTRODUCED BY

Gerald P. Ortiz y Pino

AN ACT

RELATING TO MOTOR VEHICLE INSURANCE; PROVIDING THAT MOTOR VEHICLE INSURERS MAY OFFER MILE-BASED RATING PLANS; PROVIDING ADDITIONAL DUTIES FOR THE SUPERINTENDENT OF INSURANCE.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:

     Section 1. A new section of the New Mexico Insurance Code is enacted to read:

      "[NEW MATERIAL] MOTOR VEHICLE INSURANCE--MILE-BASED RATING PLANS AUTHORIZED--ADDITIONAL DUTIES FOR

SUPERINTENDENT.--

          A. As used in this section, "mile-based rating plan" means a rating plan for which a unit of exposure in a policy is a specific number of miles traveled by the insured motor vehicle within a specified unit of time.

          B. An authorized insurer that delivers, issues or renews a policy of motor vehicle insurance may offer each person who purchases motor vehicle insurance from that insurer a mile-based rating plan policy.

          C. A mile-based rating plan policy may be offered in blocks of miles, which may be prepaid by the insured. A vehicle that is covered by a mile-based rating plan policy that provides a block of at least one thousand miles shall be deemed an insured vehicle under the Motor Vehicle Code or the Insurance Code.

          D. An insurer is not liable for a claim made under a mile-based rating plan policy if the insured:

                (1) knowingly makes a material misrepresentation to the insurer regarding the mileage of a covered motor vehicle;

                (2) fails to make the covered motor vehicle available for inspection by the insurer within forty-eight hours of the insurer's request for inspection after a claim is made;

                (3) fails to maintain the covered vehicle's odometer in working order; or

                (4) makes a misrepresentation to the insurer regarding the operability of the covered vehicle's odometer.

          E. An insurer is not liable for a claim made under a mile-based rating plan policy if, on the date of loss, the covered motor vehicle has exceeded the number of miles provided for in the policy or if the date of loss is after the date the policy expires.

          F. A mile-based rating plan policy will expire when the number of miles specified in the policy have elapsed, even if notice of policy expiration is not provided to the motor vehicle division of the taxation and revenue department, the insured or any other entity.

          G. The superintendent shall adopt such rules as are necessary to implement and effectively administer mile-based rating plans."

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