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

RELATING TO INSURANCE; ASSIGNING PRIMARY LIABILITY AMONG MOTOR VEHICLE INSURERS; PROVIDING FOR AGREEMENTS AND NOTICE.

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

Section 1. A new section of Chapter 59A, Article 32 NMSA 1978 is enacted to read:

"[NEW MATERIAL] MOTOR VEHICLE INSURANCE CONTRACTS--PRIORITY.--

A. The motor vehicle insurer of the owner or lessee of a motor vehicle shall be primarily responsible for any loss or damage caused by or to the motor vehicle, subject to the limits of coverage and types of coverages in the motor vehicle insurance policy, unless the provisions of Subsection B of this section apply.

B. A person proposing to operate a motor vehicle owned by another may assume primary responsibility for the operator's motor vehicle insurance by signing or initialing the following agreement:

In consideration of the vehicle owner entrusting the motor vehicle elsewhere described to me, I agree that my motor vehicle insurance shall be primarily responsible for any loss or damage caused by or to the motor vehicle.".

C. The agreement described in Subsection B of this section:

(1) may be included in the text of another agreement and, if included, shall not require a separate signature or initial; and

(2) shall be binding on all insurers transacting insurance in the state as a condition of doing the business of transacting insurance."