46th legislature - STATE OF NEW MEXICO - first session, 2003

RELATING TO INSURANCE; INCLUDING DOMESTIC PARTNERS AS SUBJECT TO COVERAGE; AMENDING AND ENACTING SECTIONS OF THE NMSA 1978.

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

Section 1. A new section of the New Mexico Insurance Code, Section 59A-18-3.1 NMSA 1978, is enacted to read:

"59A-18-3.1. [NEW MATERIAL] "DOMESTIC PARTNER" DEFINED.-- As used in the Insurance Code, "domestic partner" means a person in a same-sex relationship in which the partners are eighteen years of age or older, cohabitating, emotionally interdependent and intending to reside together indefinitely; a "domestic partner" is a family member and domestic partners constitute a family; the dependent child of either domestic partner may be included as a family member at the election of the insured domestic partner; a "domestic partner" is included in the term "spouse"."

Section 2. Section 59A-18-4 NMSA 1978 (being Laws 1984, Chapter 127, Section 334) is amended to read:

"59A-18-4. INSURABLE INTEREST--PERSONAL INSURANCE.--

A. Any individual of competent legal capacity may procure or effect an insurance contract upon his own life or body for the benefit of any person. No person shall procure or cause to be procured any insurance contract upon the life or body of another individual unless the benefits under such contract are payable to the individual insured or his personal representatives, or to a person having, at the time such contract was made, an insurable interest in the individual insured.

B. If the beneficiary, assignee or other payee under any contract made in violation of this section receives from the insurer any benefits thereunder accruing upon the death, disablement or injury of the individual insured, the individual insured or personal representative may maintain an action to recover such benefits from the person so receiving them.

C. As used in this section, "insurable" interest as to such personal insurance means that every person has an insurable interest in the life, body and health of himself, if an individual, and in the life, body and health of other individuals as follows:

(1) in the case of individuals related closely by blood or by law or in the case of domestic partners, a substantial interest engendered by love and affection; and

(2) in the case of other persons, a lawful and substantial economic interest in having the life, health or bodily safety of the insured individual continue, as distinguished from an interest which would arise only, or would be enhanced in value, by the death, disablement or injury of the individual insured.

D. An individual party to a contract or option for purchase or sale of an interest in a business partnership or firm, or of shares of stock of a corporation or of an interest in such shares, has an insurable interest in the life, body and health of each individual party to such contract and for the purposes of such contract only, in addition to any insurable interest which may otherwise exist as to such individual.

E. An insurer shall be entitled to rely upon all statements, declarations and representations made by an applicant for insurance relative to the insurable interest of the applicant in the insured; and no insurer shall incur legal liability, except as set forth in the policy, by virtue of any untrue statements, declarations or representations so relied upon in good faith by the insurer."

Section 3. Section 59A-18-8 NMSA 1978 (being Laws 1984, Chapter 127, Section 338) is amended to read:

"59A-18-8. CONSENT OF INSURED--LIFE, HEALTH INSURANCE.--No life or health insurance contract upon an individual, except a contract of group life insurance or of group or blanket health insurance, shall be made or effectuated unless at the time of the making of the contract, such individual applies therefor or has consented thereto in writing, except in the following cases:

A. a spouse may effectuate such insurance upon the other spouse;

B. any person having an insurable interest in the life of a minor, or any person upon whom a minor is dependent for support and maintenance, may effectuate insurance upon the life of or pertaining to such minor; and

C. family policies may be issued insuring any two [(2)] or more members of a family on an application signed by either parent, a stepparent, a guardian, a domestic partner or by a husband or wife."

Section 4. Section 59A-22-2 NMSA 1978 (being Laws 1984, Chapter 127, Section 423) is amended to read:

"59A-22-2. FORM AND CONTENT OF POLICY.--No policy of individual health insurance shall be delivered or issued for delivery in this state unless:

A. the entire money and other considerations therefor are expressed therein; [and]

B. the time at which insurance takes effect and terminates is expressed therein; [and]

C. it purports to insure only one person, except as provided in Chapter 59A, Article 23 [of the Insurance Code] NMSA 1978, and except that a policy or contract may be issued upon application of the head of a family, who shall be deemed the policyholder, covering members of any one family, including husband, wife, domestic partner, dependent children or any children under the age of nineteen [(19)] and other dependents living with the family; [and]

D. every printed portion of the text matter and of any endorsements or attached papers shall be printed in uniform type of which the face shall be not less than ten [(10)] point (the "text" shall include all printed matter except the name and address of the insurer, name and title of the policy, captions, subcaptions and form numbers), but notwithstanding any provision of this law, the superintendent shall not disapprove any such policy on the ground that every printed portion of its text matter or of any endorsement or attached paper is not printed in uniform type if it shall be shown that the type used is required to conform to the laws of another state in which the insurer is authorized; [and]

E. the exceptions and reductions of indemnity are adequately captioned and clearly set forth in the policy or contract; [and]

F. each such form, including riders and endorsements, shall be identified by a form number in the lower left-hand corner of the first page thereof; and

G. if any policy is issued by an insurer domiciled in this state for delivery to a person residing in another state, and if the official having responsibility for the administration of insurance laws of such other state shall have advised the superintendent that any such policy is not subject to approval or disapproval by such official, the superintendent may by ruling require that such policy meet the standards set forth in Sections [424 through 446 of this article] 59A-22-3 through 59A-22-25 NMSA 1978."

Section 5. A new section of Chapter 59A, Article 23 NMSA 1978 is enacted to read:

"[NEW MATERIAL] DOMESTIC PARTNER COVERAGE OPTIONAL TO GROUP.--

A. Health care coverage may be offered to a domestic partner or the dependent child of a domestic partner of an insured in blanket or group health insurance coverage by a group. If a group chooses to offer coverage to the domestic partner or a dependent child of a domestic partner of an insured under a blanket or group health insurance policy, the insurer shall not deny the enrollment of a domestic partner or the dependent child of a domestic partner based on the status of the person or child as a domestic partner or the child of a domestic partner of an insured. Whether a domestic partner or a child of a domestic partner is insurable shall be determined by the insurer according to the same criteria used to determine if a spouse or a biological child of an insured may be covered.

B. As used in Chapter 59A, Article 23 NMSA 1978, "group" means a special group described in Section 59A-23-2 NMSA 1978 or a group as described in Section 59A-23-3 NMSA 1978."

Section 6. A new section of Chapter 59A, Article 23C NMSA 1978 is enacted to read:

"[NEW MATERIAL] COVERAGE FOR DOMESTIC PARTNERS OPTIONAL TO SMALL EMPLOYER.--Health insurance coverage may be offered to a domestic partner or the dependent child of a domestic partner of an employee of a small employer. If a small employer chooses to offer coverage to the domestic partner or a dependent child of a domestic partner of an employee under a health insurance plan offered by the small employer, the insurer shall not deny the enrollment of a domestic partner or the dependent child of a domestic partner based on the status of the person as a domestic partner or the child as the child of a domestic partner of an employee. Whether a domestic partner or a child of a domestic partner is insurable shall be determined by the insurer according to the same criteria used to determine if a spouse or a biological child of an employee of a small employer may be covered."