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SENATE BILL 506
57TH LEGISLATURE - STATE OF NEW MEXICO - FIRST SESSION, 2025
INTRODUCED BY
Gabriel Ramos and Joshua A. Sanchez
AN ACT
RELATING TO INSURANCE; ENACTING A NEW SECTION OF THE FAIR PLAN
ACT; PROVIDING A MAXIMUM INSURABLE VALUE FOR PROPERTIES INSURED
UNDER THE FAIR PLAN.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
SECTION 1. A new section of the FAIR Plan Act is enacted
to read:
"[NEW MATERIAL] FIRE DEPARTMENT INSURANCE LIMITS.--
A. The maximum limit of liability for a property
insured and subsequently damaged or destroyed by fire that is
located in the service area of a fire department that may be
insured under a FAIR plan shall be:
(1) six hundred thousand dollars ($600,000)
for a property insured and subsequently damaged or destroyed by
fire that is located in the service area of a fire department
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with a class rating of eight, nine or ten or a similar rating
system as determined by a nationally recognized insurance
service; and
(2) seven hundred fifty thousand dollars
($750,000) for a property insured and subsequently damaged or
destroyed by fire that is located in the service area of a
well-staffed and well-equipped fire department with a class
rating of one through seven or a similar rating system as
determined by a nationally recognized insurance service.
B. As used in this section, "nationally recognized
insurance service" means an organization that collects
statistical data, promulgates rating information, develops
standard policy forms and files information with state
regulators of insurance on behalf of insurance companies and
rates fire departments based on the following factors:
(1) emergency communication systems, including
911 dispatch;
(2) fire department staffing, training and
equipment;
(3) water supply availability and pressure;
and
(4) community risk reduction programs and
other factors."
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