0001|                        SENATE BILL 722
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0002|     42ND LEGISLATURE - STATE OF NEW MEXICO - SECOND SESSION,
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0003|     1996
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0004|                         INTRODUCED BY
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0005|                        TOM R. BENAVIDES
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0006|     
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0007|                                
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0008|     
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0009|     
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0010|     
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0011|                             AN ACT
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0012|     RELATING TO MOTOR VEHICLE INSURANCE; PROHIBITING A MOTOR VEHICLE
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0013|     LIABILITY INSURER FROM REFUSING TO ISSUE AN INSURANCE POLICY
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0014|     BASED ON AN INDIVIDUAL'S DRIVING RECORD; AMENDING THE INSURANCE
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0015|     RATE REGULATION LAW.
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0016|     
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0017|     BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
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0018|       Section 1.  Section 59A-17-7.1 NMSA 1978 (being Laws 1987,
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0019|     Chapter 80, Section 1) is amended to read:
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0020|       "59A-17-7.1.  RATES--COVERAGE--MOTOR VEHICLE LIABILITY.--
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0021|            A.  The rates of a motor vehicle liability insurer
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0022|     shall not provide for an increase in the premium if based upon
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0023|     an accident in which the insured is not at fault in any manner
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0024|     as determined by either the accident report or the insurer.  If
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0025|     the insurer determines that its insured is at fault contrary to
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0001|     the specific finding of an accident report that the insured is
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0002|     not at fault, the insurer shall reach its conclusion only after
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0003|     an investigation.
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0004|            B.  A motor vehicle liability insurer shall not
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0005|     cancel, <u>use as a basis for refusal to issue</u> or use as a basis
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0006|     for nonrenewal, an insurance policy <s>[if such cancellation or
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<s></s>0007| <s>    nonrenewal is based upon an accident in which the insured is not
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<s></s>0008| <s>    at fault in any manner as determined by either the accident
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<s></s>0009| <s>    report or the insurer.  If the insurer determines that its
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<s></s>0010| <s>    insured is at fault contrary to the specific finding of an
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<s></s>0011| <s>    accident report that the insured is not at fault, the insurer
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<s></s>0012| <s>    shall reach its conclusion only after an investigation]</s> <u>basedy
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<u></u>0013| <u>    on an individual's driving record</u>.
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0014|            C.  As used in this section, "motor vehicle liability
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0015|     insurer" means an insurer authorized to transact in this state
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0016|     the business of automobile and motor vehicle bodily injury,
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0017|     property damage liability and physical damage insurance.
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0018|            D.  This section shall not apply if other factors
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0019|     exist, exclusive of the accident in which the insured is not at
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0020|     fault, which allow for a premium increase, cancellation or
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0021|     nonrenewal of an insurance policy under the Insurance Code or
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0022|     regulations pursuant to the Insurance Code."
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0023|                              
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0024|     
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