44TH LEGISLATURE - STATE OF NEW MEXICO - FIRST SESSION, 1999

RELATING TO AUTOMOBILE INSURANCE; PROVIDING THAT UNINSURED MOTORISTS SHALL NOT HAVE A CIVIL CAUSE OF ACTION IN CERTAIN CIRCUMSTANCES; ENACTING A NEW SECTION OF THE MANDATORY FINANCIAL RESPONSIBILITY ACT.

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

Section 1. A new section of the Mandatory Financial Responsibility Act is enacted to read:

"[NEW MATERIAL] UNINSURED MOTORISTS--RESTRICTIONS ON CIVIL CAUSE OF ACTION.--

A. An uninsured motorist shall not have a civil cause of action to recover damages from another person that result from an accident arising out of the operation, maintenance or use of a motor vehicle, when the other person is in compliance with the provisions of the Mandatory Financial Responsibility Act.

B. Notwithstanding the provisions of Subsection A of this section, an uninsured motorist shall have a civil cause of action against another person pursuant to common law tort principles for economic loss and noneconomic loss, when that person causes:

(1) personal injury to the uninsured motorist as a direct result of committing a felony while operating a motor vehicle or while driving under the influence of intoxicating liquor or drugs; or

(2) property damage to the uninsured motorist's motor vehicle as a direct result of committing a felony while operating a motor vehicle or while driving under the influence of intoxicating liquor or drugs.

C. Insurers are prohibited from paying damages assessed against an insured motorist pursuant to the provisions of Subsection B of this section, except for economic loss.

D. Notwithstanding the provisions of Subsection A of this section, an uninsured motorist shall have a civil cause of action against another person pursuant to common law tort principles for economic loss and noneconomic loss, when that person causes:

(1) personal injury to the uninsured motorist as a direct result of intentional misconduct; or

(2) property damage to the uninsured motorist's motor vehicle as a direct result of intentional misconduct.

E. Insurers are prohibited from paying damages assessed against an insured motorist pursuant to the provisions of Subsection D of this section.

F. The provisions of this section are not intended to limit a cause of action in tort against any person other than the individual engaged in operating, maintaining or using a motor vehicle at the time of an accident.

G. As used in this section:

(1) "economic loss" means pecuniary loss and monetary expense incurred by or on behalf of an injured person as the result of an accidental bodily injury;

(2) "noneconomic loss" means any loss other than economic loss, including pain, suffering, loss of enjoyment of life, mental anguish, emotional distress and all other non-economic damages; and

(3) "uninsured motorist" means a person who is the owner of a motor vehicle or the person responsible for maintaining a motor vehicle liability policy or a certified motor vehicle liability policy on a motor vehicle subject to the provisions of the Mandatory Financial Responsibility Act, but who fails to maintain the minimum required coverages."

Section 2. EFFECTIVE DATE.--The effective date of the provisions of this act is July 1, 1999.