SENATE MEMORIAL 67

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

INTRODUCED BY

Gerald P. Ortiz y Pino

A MEMORIAL

REQUESTING THE INSURANCE DIVISION OF THE PUBLIC REGULATION COMMISSION TO STUDY THE POTENTIAL BENEFITS OF MILEAGE-BASED VEHICLE INSURANCE TO THE RESIDENTS OF NEW MEXICO.

     WHEREAS, New Mexico law requires that residents of New Mexico who own and operate motor vehicles upon the highways of the state either have the ability to respond in damages to accidents arising out of the use and operation of a motor vehicle or obtain a motor vehicle insurance policy; and

     WHEREAS, in the aggregate, New Mexicans spend millions of dollars every year complying with the state's motor vehicle insurance requirements; and

     WHEREAS, reducing the cost of motor vehicle insurance would be of tremendous benefit to the state and its citizens; and

     WHEREAS, motor vehicle insurance policies that are based on the number of miles driven, rather than on a period of time elapsed, may provide great savings to some drivers; and

     WHEREAS, numerous states, private insurance companies and citizens' advocacy groups across the country have explored, and in some cases adopted, mileage-based vehicle insurance standards; and

     WHEREAS, adopting statewide mileage-based vehicle insurance standards may allow insurance companies to offer mileage-based policies to those who choose to purchase such policies, while ensuring that state insurance rules are followed;

     NOW, THEREFORE, BE IT RESOLVED BY THE SENATE OF THE STATE OF NEW MEXICO that the insurance division of the public regulation commission be requested to study the potential benefits of mileage-based vehicle insurance to the residents of New Mexico; and

     BE IT FURTHER RESOLVED that the study include recommendations on the feasibility of implementing mileage-based vehicle insurance policies in New Mexico through regulation and without the need for additional legislation, as well as recommendations on any other steps necessary to implement mileage-based insurance; and

     BE IT FURTHER RESOLVED that the study, when complete, be presented to the appropriate interim legislative committees by November 1, 2009 and that a copy be submitted to the library of the legislative council service; and

      BE IT FURTHER RESOLVED that copies of this memorial be transmitted to the public regulation commission and the superintendent of insurance.

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