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F I S C A L I M P A C T R E P O R T

SPONSOR Lujan

ORIGINAL DATE

LAST UPDATED

3/13/07

HM 98

SHORT TITLE Study Windshield Repair and Insurance Rates

SB

ANALYST Earnest

APPROPRIATION (dollars in thousands)

Appropriation

Recurring

or Non-Rec

Fund

Affected

FY07

FY08

NFI

NFI

(Parenthesis ( ) Indicate Expenditure Decreases)

SOURCES OF INFORMATION

LFC Files

SUMMARY

Synopsis of Bill

House Memorial 98 requests that the Insurance Division of the Public Regulation Commission

study the effects of deductibles for comprehensive coverage for windshield repair and

replacement with respect to insurance rates, consumer safety and insurance industry practices

with respect to premium or rate discounts for those consumers who maintain favorable claim

histories over time. The Insurance Division would be authorized to request assistance and

counsel of any parties that may be affected by or be knowledgeable about vehicle insurance. The

report must be presented to the PRC by November 1, 2007.

FISCAL IMPLICATIONS

None identified.

SIGNIFICANT ISSUES

The memorial finds that:

•

The availability of affordable insurance coverage is of public importance for consumers

in New Mexico; and WHEREAS, deductibles and the waiver of such deductibles for

comprehensive coverage for windshield repair and replacement coverage affect the cost

of such coverage;

House Memorial 98 – Page

2

•

The failure of consumers to effectuate repairs or replacement of damaged windshields

could affect the safety of operating motor vehicles with damaged windshields;

•

Because consumer premiums and rates may be affected by deductibles and the waiver of

such deductibles for comprehensive coverage for windshield repair and replacement

coverage, this study should include insurance industry practices with respect to premium

or rate discounts for those consumers who maintain favorable claim histories over time;

ADMINISTRATIVE IMPLICATIONS

There may be some administrative impact on the Insurance Division of the PRC, but the

memorial authorized the use of outside resources.

BE/mt