HOUSE BILL 528

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

INTRODUCED BY

Larry A. Larrañaga

AN ACT

RELATING TO MOTOR VEHICLE INSURANCE; AMENDING THE MANDATORY FINANCIAL RESPONSIBILITY ACT TO PROVIDE FOR REDUCED LIMITS OF INSURANCE FOR LOW-INCOME DRIVERS; AMENDING AND ENACTING SECTIONS OF THE NMSA 1978.

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

     Section 1. Section 66-5-208 NMSA 1978 (being Laws 1978, Chapter 35, Section 282, as amended) is amended to read:

     "66-5-208. EVIDENCE OF FINANCIAL RESPONSIBILITY--AMOUNTS AND CONDITIONS.--

          A. "Evidence of financial responsibility", as used in the Mandatory Financial Responsibility Act, means evidence of the ability to respond in damages for liability, on account of accidents occurring subsequent to the effective date of the evidence, arising out of the ownership, maintenance or use of a vehicle of a type subject to registration under the laws of New Mexico, in the following amounts:

                (1) for owners with incomes of greater than one hundred fifty percent of the federal poverty guidelines:

                     [A.] (a) twenty-five thousand dollars ($25,000) because of bodily injury to or death of one person in any one accident;

                     [B.] (b) subject to this limit for one person, fifty thousand dollars ($50,000) because of bodily injury to or death of two or more persons in any one accident;

                     [C.] (c) ten thousand dollars ($l0,000) because of injury to or destruction of property of others in any one accident; and

                     [D.] (d) if evidence is in the form of a surety bond or a cash deposit, the total amount shall be sixty thousand dollars ($60,000); or

                (2) for owners with incomes less than or equal to one hundred fifty percent of the federal poverty guidelines:

                     (a) ten thousand dollars ($10,000) because of bodily injury to or death of one person in any one accident;

                     (b) subject to this limit for one person, twenty thousand dollars ($20,000) because of bodily injury to or death of two or more persons in any one accident;

                     (c) five thousand dollars ($5,000) because of injury to or destruction of property of others in any one accident; and

                     (d) if evidence is in the form of a surety bond or cash deposit, the total amount shall be sixty thousand dollars ($60,000).

          B. An insurance agent, insurance broker or insurer who accepts as part of the application for insurance coverage a form attesting to the eligibility of an insured to receive insurance pursuant to Paragraph (2) of Subsection A of this section shall not be liable for any claim regarding the adequacy of the reduced or limited insurance coverage.

          C. As used in this section, "federal poverty guidelines" means the level of income defining poverty by family size developed annually by the United States department of health and human services and published in the federal register."

     Section 2. A new section of the Mandatory Financial Responsibility Act is enacted to read:

     "[NEW MATERIAL] COVERAGES IN OTHER JURISDICTIONS.--A policy issued pursuant to the provisions of Subsection A of Section 66-5-208 NMSA 1978 shall provide the coverage required by the law of the jurisdiction if an insured becomes subject to a compulsory financial responsibility or similar law of another jurisdiction of the United States on its territories or possessions or Canada."

     Section 3. A new section of the Mandatory Financial Responsibility Act is enacted to read:

     "[NEW MATERIAL] SUPERINTENDENT--SUPPLEMENTAL DUTIES PURSUANT TO THE MANDATORY FINANCIAL RESPONSIBILITY ACT.--The superintendent shall adopt rules governing the forms insurers require from owners of motor vehicles attesting to eligibility for reduced or limited coverage pursuant to the Mandatory Financial Responsibility Act."

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