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HOUSE MEMORIAL 55
57TH LEGISLATURE - STATE OF NEW MEXICO - FIRST SESSION, 2025
INTRODUCED BY
Harlan Vincent
A MEMORIAL
URGING THE OFFICE OF SUPERINTENDENT OF INSURANCE TO PROMPTLY
APPROVE THE PROPOSED CHANGES TO THE NEW MEXICO PROPERTY
INSURANCE PROGRAM TO PROVIDE RELIEF TO HOMEOWNERS IN LINCOLN
COUNTY AND OTHER COMMUNITIES THROUGHOUT THE STATE.
WHEREAS, the South Fork and Salt fires of 2024 devastated
Lincoln county and other areas of New Mexico, destroying
hundreds of homes and businesses and leaving many residents
displaced; and
WHEREAS, the increasing risks of wildfires have made it
difficult for homeowners to secure affordable insurance
coverage through the private market; and
WHEREAS, the New Mexico property insurance program,
commonly referred to as the "FAIR plan", was created under the
FAIR Plan Act to provide essential property insurance to
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responsible and qualified applicants unable to secure coverage
through the normal market; and
WHEREAS, the FAIR plan acts as the insurer of last resort
and provides minimal coverage on an actual-cash-value basis,
which is accepted by certain mortgage lenders, to meet mortgage
requirements; and
WHEREAS, the governing committee of the New Mexico
property insurance program approved changes to the FAIR plan in
February 2025, including new coverage limits that align with
the needs of Lincoln county residents and other affected New
Mexico residents; and
WHEREAS, under the proposed changes, the FAIR plan would
increase coverage limits for residential properties up to seven
hundred fifty thousand dollars ($750,000) while maintaining
coverage limitations for commercial properties; and
WHEREAS, these changes strike a balance between providing
necessary coverage for homeowners in high-risk areas and
maintaining the long-term financial sustainability of the FAIR
plan; and
WHEREAS, the office of superintendent of insurance is
responsible for reviewing and approving proposed changes to the
FAIR plan before they can be implemented; and
WHEREAS, delaying approval of these changes continues to
prolong uncertainty for Lincoln county residents and other
state residents in need of insurance coverage to rebuild and
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return to their homes;
NOW, THEREFORE, BE IT RESOLVED BY THE HOUSE OF
REPRESENTATIVES OF THE STATE OF NEW MEXICO that the house of
representatives fully support the governing committee of the
New Mexico property insurance program's decision to approve
increased coverage limits under the New Mexico property
insurance program, recognizing that this action will provide
critical relief to homeowners in Lincoln county and other
communities across the state; and
BE IT FURTHER RESOLVED that the house of representatives
urge the office of superintendent of insurance to promptly
approve the governing committee of the New Mexico property
insurance program's proposed changes so that Lincoln county
residents can secure policies as soon as possible and begin the
process of rebuilding and returning to their homes; and
BE IT FURTHER RESOLVED that copies of this memorial be
transmitted to the superintendent of insurance, the governor
and the members of the governing committee of the New Mexico
property insurance program.
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