0001| SENATE BILL 158
|
0002| 43RD LEGISLATURE - STATE OF NEW MEXICO - SECOND SESSION, 1998
|
0003| INTRODUCED BY
|
0004| WILLIAM H. PAYNE
|
0005|
|
0006|
|
0007|
|
0008|
|
0009|
|
0010| AN ACT
|
0011| RELATING TO INSURANCE AGAINST UNINSURED MOTORISTS; REQUIRING
|
0012| AN ELECTION TO STACK COVERAGE LIMITS; ALLOWING EXCLUSION OF
|
0013| COVERAGE FOR PUNITIVE AND EXEMPLARY DAMAGES; SPECIFYING THE
|
0014| EXTENT OF COVERAGE FOR PROPERTY; AMENDING A SECTION OF THE
|
0015| NMSA 1978.
|
0016|
|
0017| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
|
0018| Section 1. Section 66-5-301 NMSA 1978 (being Laws 1978,
|
0019| Chapter 35, Section 325, as amended) is amended to read:
|
0020| "66-5-301. INSURANCE AGAINST UNINSURED AND UNKNOWN
|
0021| MOTORISTS--REJECTION OF COVERAGE BY THE INSURED.--
|
0022| A. No motor vehicle [or automobile] liability
|
0023| policy insuring against loss resulting from liability imposed
|
0024| by law for bodily injury or death suffered by any person and
|
0025| for injury to or destruction of property of others arising out
|
- 1 -
0001| of the ownership, maintenance or use of a motor vehicle shall
|
0002| be delivered or issued for delivery in New Mexico with respect
|
0003| to any motor vehicle registered or principally garaged in New
|
0004| Mexico unless coverage is provided therein or supplemental
|
0005| thereto in minimum limits for bodily injury or death and for
|
0006| injury to or destruction of property as set forth in Section
|
0007| 66-5-215 NMSA 1978 and such higher limits as may be desired by
|
0008| the insured, but up to the limits of liability specified in
|
0009| bodily injury and property damage liability provisions of the
|
0010| insured's policy, for the protection of persons insured
|
0011| thereunder who are legally entitled to recover damages from
|
0012| owners or operators of uninsured motor vehicles because of
|
0013| bodily injury, sickness or disease, including death, and for
|
0014| injury to or destruction of property resulting therefrom,
|
0015| according to the rules and regulations promulgated by, and
|
0016| under provisions filed with and approved by, the
|
0017| superintendent of insurance.
|
0018| B. The uninsured motorist coverage described in
|
0019| Subsection A of this section shall include underinsured
|
0020| motorist coverage for persons protected by an insured's
|
0021| policy. For the purposes of this subsection, "underinsured
|
0022| motorist" means an operator of a motor vehicle with respect to
|
0023| the ownership, maintenance or use of which the sum of the
|
0024| limits of liability under all bodily injury liability
|
0025| insurance applicable at the time of the accident is less than
|
- 2 -
0001| the limits of liability under the insured's uninsured motorist
|
0002| coverage. [No motor vehicle or automobile liability policy
|
0003| sold in New Mexico shall be required to include underinsured
|
0004| motorist coverage until January 1, 1980.]
|
0005| C. Unless a named insured makes an express
|
0006| election to stack uninsured motorist coverage limits for two
|
0007| or more insured vehicles by adding such limits together, the
|
0008| limits shall not be stacked. An insurer shall notify its
|
0009| policyholders in writing that they may elect to stack
|
0010| uninsured motorist coverage limits.
|
0011| [C. The] D. Uninsured motorist coverage shall
|
0012| [provide an exclusion] exclude coverage of not more than
|
0013| the first [two hundred fifty dollars ($250)] five hundred
|
0014| dollars ($500) of loss resulting from injury to or
|
0015| destruction of property of the insured in any one accident
|
0016| and may exclude coverage of punitive or exemplary damages.
|
0017| The named insured shall have the right to reject the
|
0018| uninsured motorist coverage [as] described in [Subsections
|
0019| A and B of] this section; provided that unless the named
|
0020| insured requests such coverage in writing, such coverage need
|
0021| not be provided in or supplemental to a renewal policy where
|
0022| the named insured has rejected the coverage in connection with
|
0023| a policy previously issued to him by the same insurer.
|
0024| E. Uninsured motorist coverage for injury to or
|
0025| destruction of property extends only to the insured vehicle
|
- 3 -
0001| described in the policy and to property not otherwise insured
|
0002| carried in or upon the vehicle."
|
0003|
|