HOUSE CONSUMER AND PUBLIC AFFAIRS COMMITTEE SUBSTITUTE FOR

HOUSE BILL 359

47th legislature - STATE OF NEW MEXICO - first session, 2005

AN ACT

RELATING TO INSURANCE; REQUIRING POLICY DECLARATION PROVISIONS TO BE IN BOTH ENGLISH AND SPANISH UPON REQUEST; AMENDING A SECTION OF THE NMSA 1978.

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

     Section 1. Section 59A-18-17 NMSA 1978 (being Laws 1984, Chapter 127, Section 346, as amended) is amended to read:

     "59A-18-17. STANDARD PROVISIONS, IN GENERAL.--

          A. Insurance contracts shall contain such standard or uniform provisions as are required by applicable provisions of the Insurance Code pertaining to contracts of particular kinds of insurance.

          B. No policy shall contain any provision inconsistent with or contradictory to any standard or uniform provision used or required to be used, but the superintendent may approve any substitute provision which is, in [his] the superintendent's opinion, not less favorable in any particular to the insured, owner or beneficiary than the provision otherwise required or which is designed to comply with Chapter 59A, Article 19 NMSA 1978.

          C. Insurance coverage provided in residential property insurance policies shall provide coverage for the cost to repair or replace without deduction for depreciation. If the insured elects to effectuate repairs to the property himself, a reasonable overhead expense shall be allowed.

          D. In all insurance contracts issued or renewed on or after January 1, 2006, the policy declarations page or, if other than a property or casualty contract, the equivalent page shall be written in both the English and Spanish languages if requested by the insured. The provisions provided in Spanish shall not govern the rights and responsibilities of the parties but are provided for information only. The provisions of this subsection shall not apply to workers' compensation insurance, commercial multiple peril insurance, commercial general liability insurance or surplus lines insurance.

          [D.] E. In lieu of the provisions required by the Insurance Code for contracts for particular kinds of insurance, substantially similar provisions required by the laws of the domicile of a foreign or alien insurer may be used when approved by the superintendent.

          [E.] F. A policy issued by a domestic insurer for delivery in another jurisdiction may contain any provision required or permitted under the laws of such jurisdiction."

     Section 2. EFFECTIVE DATE.--The effective date of the provisions of this act is January 1, 2006.

- 3 -