45th legislature - STATE OF NEW MEXICO - second session, 2002

AN ACT

RELATING TO INSURANCE; ASSIGNING PRIMARY LIABILITY AMONG MOTOR VEHICLE INSURERS AND SELF-INSURERS FOR USE OF VEHICLES OWNED BY A LICENSED AUTOMOBILE DEALER.

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

Section 1. Section 59A-32-23 NMSA 1978 (being Laws 2001, Chapter 88, Section 1) is amended to read:

"59A-32-23. VEHICLE INSURANCE--PRIMARY LIABILITY--ASSIGNMENT--NOTICE.--

[A. Except as provided in Subsection B or C of this section, a motor vehicle insurance policy or self-insurance agreement of the owner or long-term lessee of a motor vehicle shall provide primary coverage for bodily injury or property damage claims, subject to the terms, conditions, limits and types of coverage included in the policy or agreement.

B.] A. When a vehicle owned by a licensed automobile dealer is loaned without a fee to a person for demonstration purposes, as a temporary substitute for that person's vehicle while it is being serviced or repaired, as a promotional courtesy vehicle or as a courtesy vehicle, primary insurance or self-insurance coverage shall be provided by the motor vehicle insurer providing coverage to the person using the demonstration vehicle, temporary substitute vehicle, promotional courtesy vehicle or a courtesy vehicle, and coverage provided by the dealer or the dealer's insurer applies only as excess coverage.

[C.] B. A person proposing to operate a motor vehicle for the purposes identified in Subsection [B] A of this section may assume primary responsibility for the operator's vehicle insurance by signing the following statement:

"PRIMARY LIABILITY ASSIGNMENT

In consideration of the vehicle owner entrusting the motor vehicle elsewhere described to me, I agree that my vehicle insurance or self-insurance coverage shall be primarily responsible for any loss or damage caused by or to the motor vehicle.".

[D.] C. The agreement set forth in Subsection [C] B of this section shall be binding on all insurers and self-insurers transacting insurance in the state as a condition of doing the business of transacting insurance."