46th legislature - STATE OF NEW MEXICO - first session, 2003

RELATING TO INSURANCE; REQUIRING POLICY DECLARATION PROVISIONS TO BE IN BOTH ENGLISH AND SPANISH; AMENDING A SECTION OF THE NMSA 1978.

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 any provision inconsistent with or contradictory to any standard or uniform provision used or required to be used, but the superintendent may approve any substitute provision [which] that is, in his opinion, not less favorable in any particular to the insured, owner or beneficiary than the provision otherwise required or [which] 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 himself, a reasonable overhead expense shall be allowed.

D. The policy declaration provisions of any insurance contract shall be written in both the English and Spanish languages.

[D.] E. 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.] F. 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."

Section 2. EFFECTIVE DATE.--The effective date of the provisions of this act is July 1, 2003.