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

RELATING TO MOTOR VEHICLE INSURANCE; ADDING PROVISIONS RELATING TO COMBINING POLICY LIMITS ON TWO OR MORE POLICIES PROVIDING UNINSURED MOTORIST COVERAGE.

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

Section 1. A new Section 66-5-301.3 NMSA 1978 is enacted to read:

"66-5-301.3. [NEW MATERIAL] INSURANCE AGAINST UNINSURED MOTORISTS--STACKING--ELECTION BY INSURED.--Unless a named insured makes a specific election to have the limits of liability for uninsured motorist coverage for two or more vehicles insured under the same or separate policies added together, the limits of liability for uninsured motorist coverage for two or more vehicles insured under the same or separate policies shall not be added together to determine the limit of insurance coverage available to an injured person for any one accident. An insurer shall notify its policyholders and applicants that they may elect to have two or more uninsured motorist coverage limits added together. The election by the policyholder or applicant shall be made in writing on a form promulgated by the superintendent of insurance. If the election form is signed by a named insured, it is conclusively presumed that there was an informed, knowing acceptance of the provisions of this section. No insurer is responsible for a person who makes or refuses to make this election as to any or all vehicles insured by the person regardless of whether that person can benefit from the purchase of the selected uninsured motorist coverage. The form may be signed by any named insured and shall be valid for all persons insured under the policy. A copy of the form shall be retained by the insurer. The election made shall apply to all policies issued supplemental to or as a renewal or reinstatement of the policy or policies for which the election was made unless a named insured requests, in writing, cancellation of the election and pays the appropriate premium for such coverage. If a named insured does not make the election provided for in this subsection and at the time of the accident:

A. the injured person was occupying a motor vehicle owned by the injured person or a family member residing with him, the only uninsured motorist coverage available to the injured person is the coverage purchased for that particular vehicle. In addition, no uninsured motorist coverage applies or is available to an injured person who was, at the time of the accident, occupying a motor vehicle owned by the injured person or a family member residing with him for which no uninsured motorist coverage was purchased;

B. the injured person was occupying a motor vehicle not owned by the injured person or a family member residing with him, the injured person is entitled to the highest limits of uninsured motorist coverage afforded for any one vehicle as to which the injured person is a named insured or insured family member. This coverage shall be excess over the coverage on the vehicle occupied by the injured person; and

C. the injured person is not occupying a motor vehicle, the injured person is entitled to the highest limits of uninsured motorist coverage afforded for any one vehicle as to which the injured person is a named insured or insured family member."