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