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SENATE BILL 215
57
TH LEGISLATURE
-
STATE
OF
NEW
MEXICO
-
FIRST SESSION
,
2025
INTRODUCED BY
Leo Jaramillo
AN ACT
RELATING TO INSURANCE; CLARIFYING COVERAGE FOR CERTAIN EXCLUDED
RISKS.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
SECTION 1. Section 59A-18-17 NMSA 1978 (being Laws 1984,
Chapter 127, Section 346, as amended) is amended to read:
"59A-18-17. STANDARD PROVISIONS, IN GENERAL.--
A. Insurance contracts shall contain such standard
or uniform provisions as are required by applicable provisions
of the Insurance Code pertaining to contracts of particular
kinds of insurance.
B. No policy shall contain a provision inconsistent
with or contradictory to a standard or uniform provision used
or required to be used, but the superintendent may approve a
substitute provision that is, in the superintendent's opinion,
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not less favorable in any particular to the insured, owner or
beneficiary than the provision otherwise required or that is
designed to comply with Chapter 59A, Article 19 NMSA 1978.
C. Insurance coverage provided in residential
property insurance policies shall provide coverage for the cost
to repair or replace without deduction for depreciation. If
the insured elects to effectuate repairs to the property by the
insured's own self, a reasonable overhead expense shall be
allowed.
D. In lieu of the provisions required by the
Insurance Code for contracts for particular kinds of insurance,
substantially similar provisions required by the laws of the
domicile of a foreign or alien insurer may be used when
approved by the superintendent.
E. A policy issued by a domestic insurer for
delivery in another jurisdiction may contain any provision
required or permitted under the laws of such jurisdiction.
F. To protect consumers as well as enhance the
value of consumer information systems, the superintendent may
specify minimum coverage provisions that homeowners insurance
policies, private passenger non-fleet automobile insurance
policies or other lines or kinds of insurance policies that are
priced in a consumer information system shall contain, provided
that such minimum coverage provisions are contained in the
majority of policies in force in New Mexico for that line or
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kind of insurance. An insurer that does not offer a policy
that contains the minimum coverage provisions specified by the
superintendent for a line or kind of insurance shall not be
included in a consumer information system for that line or kind
of insurance. The superintendent shall not compel an insurer
to offer a policy containing minimum coverage provisions
specified by the superintendent.
G. When a loss is caused by a combination of a
covered and specifically excluded risk, an insurance contract
shall provide that the loss is covered if the covered risk was
the efficient proximate cause of the loss, but the loss is not
covered if the covered risk was only a remote cause of the
loss."
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