HOUSE BILL 754

49th legislature - STATE OF NEW MEXICO - first session, 2009

INTRODUCED BY

Joseph Cervantes

AN ACT

RELATING TO INSURANCE; PROVIDING COVERAGE FOR ACTUAL CASH VALUE OF PROPERTY IN CERTAIN INSURANCE CONTRACTS; INCLUDING ADMINISTRATORS AND SERVICING CARRIERS UNDER PROVISIONS PURSUANT TO THE FAIR PLAN ACT.

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 a provision inconsistent with or contradictory to a standard or uniform provision used or required to be used, but the superintendent may approve a substitute provision that is, in the superintendent's opinion, not less favorable in any particular to the insured, owner or beneficiary than the provision otherwise required or that 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; provided that policies issued by or on behalf of the New Mexico property insurance program, its administrators or its servicing carrier, pursuant to the FAIR Plan Act, shall provide insurance coverage for the actual cash value of insured property. If the insured elects to effectuate repairs to the property by the insured's own self, a reasonable overhead expense shall be allowed.

          D. 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. 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.

          F. To protect consumers as well as enhance the value of consumer information systems, the superintendent may specify minimum coverage provisions that homeowners insurance policies, private passenger non-fleet automobile insurance policies or other lines or kinds of insurance policies that are priced in a consumer information system shall contain, provided that such minimum coverage provisions are contained in the majority of policies in force in New Mexico for that line or kind of insurance. An insurer that does not offer a policy that contains the minimum coverage provisions specified by the superintendent for a line or kind of insurance shall not be included in a consumer information system for that line or kind of insurance. The superintendent shall not compel an insurer to offer a policy containing minimum coverage provisions specified by the superintendent."

     Section 2. Section 59A-29-7 NMSA 1978 (being Laws 1985, Chapter 61, Section 7) is amended to read:

     "59A-29-7. IMMUNITY.--There shall be no liability on the part of and no cause of action of any nature shall arise against any member insurer, the association or its agents or employees, the governing committee, administrators, servicing carriers or the superintendent or [his] the superintendent's representative for any action taken by them in the performance of their powers and duties under the FAIR Plan Act. The meetings, activities, recommendations and decisions of the governing committee of the association as required or permitted in [that] the FAIR Plan Act shall not be open to public inspection [nor] or be considered public documents [nor] or be subject to Sections 10-15-1 through 10-15-4 NMSA 1978."

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