45th legislature - STATE OF NEW MEXICO - first session, 2001

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] VEHICLE INSURANCE CONTRACTS--PRIMARY LIABILITY--ASSIGNMENT.--

A. Except as provided in Subsection B of this section, the insurer issuing vehicle insurance to the owner or lessee of a motor vehicle is primarily responsible for loss or damage caused by or to that motor vehicle, subject to the limits and types of coverage in the policy.

B. A person proposing to operate a motor vehicle owned by another may assume primary responsibility for the operator's 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 vehicle insurance shall be primarily responsible for any loss or damage caused by or to the motor vehicle.".

C. The agreement set forth 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."