April 9, 1999

The Honorable Raymond G. Sanchez and

Members of the House of Representatives

Executive-Legislative Building

Santa Fe, New Mexico 87503

Honorable Speaker and Members of the House:

I have this day VETOED and am returning HOUSE BILL 842

enacted by the Forty-Fourth Legislature, First Session, 1999.

This legislation would prohibit an insurer from charging a higher rate or an additional assessment, surcharge or fee because the insured is a first-time purchaser of automobile insurance or because an individual has not been insured for a period of time immediately prior to the purchase of automobile insurance. I have vetoed this bill because it would prohibit insurers from using an individual’s driving record or prior history of auto insurance as an underwriting or rate factor. The statistics show that persons in these categories have a higher frequency of accidents and a greater loss rate. The result of enactment of this legislation would be to have those loss rates spread to all insured thereby increasing auto insurance rates for all New Mexicans.

Sincerely,

Gary E. Johnson

Governor