44TH LEGISLATURE - STATE OF NEW MEXICO - FIRST SESSION, 1999

RELATING TO THE MANDATORY FINANCIAL RESPONSIBILITY ACT; PROVIDING FOR THE TAXATION AND REVENUE DEPARTMENT TO CONTRACT WITH INSURANCE CARRIERS TO ISSUE MINIMUM LIABILITY POLICIES TO BE SOLD BY THE DEPARTMENT; PROVIDING A PENALTY FOR FALSE INFORMATION.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:

Section 1. A new section of the Mandatory Financial Responsibility Act is enacted to read:

"[NEW MATERIAL] MINIMUM LIABILITY POLICIES--SELECTION OF INSURANCE CARRIER--SALES BY DEPARTMENT--PENALTY FOR FALSE INFORMATION.--

A. In consultation with the superintendent of insurance and pursuant to the provisions of the Procurement Code, the secretary shall request proposals from insurance carriers to issue minimum liability policies to be sold by the department. Proposals submitted pursuant to the request shall state the cost of a minimum liability policy for different classes of drivers and automobiles, as specified in the request for proposals. After consulting with the superintendent of insurance, the secretary shall contract with the insurance carrier that, in the opinion of the secretary, will provide reliable minimum liability policies for the most vehicles that would otherwise be uninsured.

B. Pursuant to the contract entered into pursuant to Subsection A of this section, the department, by mail and at each location where motor vehicles may be registered, shall offer minimum liability policies for sale. Department employees or agents shall accept each application and, as specified in the contract, determine the eligibility of the applicant and the cost of the minimum liability policy for the classes of motor vehicle and driver to be insured. Upon payment of the cost plus a ten-dollar ($10.00) processing fee to be retained by the department and deposited in the motor vehicle suspense fund, the applicant shall be issued a minimum liability policy. Pursuant to the terms of the contract, the secretary shall remit all money collected for the costs of minimum liability policies to the insurance carrier.

C. As used in the Mandatory Financial Responsibility Act, "minimum liability policy" means a motor vehicle insurance policy issued for a term of one year and including only the minimum motor vehicle bodily injury and property damage liability coverages required by the Mandatory Financial Responsibility Act. Even though a minimum liability policy does not include uninsured motorist coverage or other coverage, any requirement in the Mandatory Financial Responsibility Act for coverage under a motor vehicle insurance policy or for evidence of financial responsibility is satisfied by coverage under a minimum liability policy or evidence of a minimum liability policy.

D. The maximum term for a contract entered into pursuant to Subsection A of this section is four years.

E. No civil liability shall accrue to the department or any of its employees or agents for making a determination or a sale in good faith pursuant to the provisions of this section.

F. The secretary shall adopt rules necessary for the implementation of this section.

G. In addition to other civil or criminal penalties that may be applicable, a person who provides false information in order to acquire a minimum liability policy is guilty of a misdemeanor and shall be sentenced pursuant to the provisions of Subsection A of Section 31-19-1 NMSA 1978."