SB 229

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AN ACT

RELATING TO BUSINESS; INCREASING THE MAXIMUM ANNUAL PREMIUM

FOR PROFESSIONAL LIABILITY INSURANCE FOR REAL ESTATE BROKERS.

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

Section 1. Section 61-29-4.2 NMSA 1978 (being Laws

2001, Chapter 216, Section 1, as amended) is amended to read:

"61-29-4.2. ADDITIONAL POWERS OF THE COMMISSION--

PROFESSIONAL LIABILITY INSURANCE--MINIMUM COVERAGE.--

A. In addition to the powers and duties granted to

the commission pursuant to the provisions of Sections 61-29-4

and 61-29-4.1 NMSA 1978, the commission may adopt rules that

require professional liability insurance coverage and may

establish the minimum terms and conditions of coverage,

including limits of coverage and permitted exceptions. If

adopted by the commission, the rules shall require every

applicant for an active license and licensee who applies for

renewal of an active license to provide the commission with

satisfactory evidence that the applicant or licensee has

professional liability insurance coverage that meets the

minimum terms and conditions required by commission rule.

B. The commission is authorized to solicit sealed,

competitive proposals from insurance carriers to provide a

group professional liability insurance policy that complies

with the terms and conditions established by commission rule.

SB 229

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The commission may approve one or more policies that comply

with the commission rules; provided that the maximum annual

premium shall not exceed three hundred dollars ($300) for a

licensee, that the minimum coverage shall not be less than

one hundred thousand dollars ($100,000) for an individual

claim and not less than a five hundred thousand dollar

($500,000) aggregate limit per policy and that the deductible

shall not be greater than one thousand dollars ($1,000).

C. Rules adopted by the commission shall permit an

active licensee to satisfy any requirement for professional

liability insurance coverage by purchasing an individual

policy.

D. Rules adopted by the commission shall provide

that there shall not be a requirement for a licensee to have

professional liability insurance coverage during a period

when a group policy, as provided in Subsection B of this

section, is not in effect."

Section 2. EFFECTIVE DATE.--The effective date of the

provisions of this act is July 1, 2008.