RELATING TO INSURANCE; PROHIBITING AN INSURER FROM CHARGING AN ADDITIONAL FEE FOR AUTOMOBILE INSURANCE TO A FIRST-TIME PURCHASER OR A PURCHASER REINSTATING COVERAGE; ENACTING A NEW SECTION OF THE NMSA 1978.

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

Section 1. A new section of Chapter 59A, Article 32 NMSA 1978 is enacted to read:

"An insurer shall not charge a higher rate or an additional assessment, surcharge or fee solely because the insured is a first-time purchaser of automobile insurance or has not been insured for a period of time immediately prior to the purchase of automobile insurance."

Section 2. EFFECTIVE DATE.--The effective date of the provisions of this act is July 1, 2001.

HB 118

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