0001| SENATE BILL 633
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0002| 42ND LEGISLATURE - STATE OF NEW MEXICO - SECOND SESSION,
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0003| 1996
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0004| INTRODUCED BY
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0005| GARY DON REAGAN
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0006|
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0007|
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0008|
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0009|
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0010|
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0011| AN ACT
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0012| RELATING TO TITLE INSURANCE; CLARIFYING TITLE INSURANCE AND
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0013| TITLE COMMITMENTS; AMENDING CERTAIN SECTIONS OF THE NMSA 1978.
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0014|
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0015| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
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0016| Section 1. Section 59A-30-5 NMSA 1978 (being Laws 1985,
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0017| Chapter 28, Section 5) is amended to read:
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0018| "59A-30-5. POLICY FORMS.--No title insurer or title
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0019| insurance agent shall use any form of title insurance policy
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0020| other than the uniform forms promulgated by the superintendent
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0021| under the New Mexico Title Insurance Law. The uniform title
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0022| insurance policy form shall be a contract of indemnity. The
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0023| form's terms and language shall state the limit and extent of
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0024| the protection, assurances and coverage provided. The
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0025| superintendent shall not promulgate any uniform form under which
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0001| the coverage offered is excessive or inadequate in relation to
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0002| the premium charged for the coverage."
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0003| Section 2. Section 59A-30-11 NMSA 1978 (being Laws 1985,
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0004| Chapter 28, Section 11) is amended to read:
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0005| "59A-30-11. UNDERWRITING STANDARDS AND RECORD RETENTION.--
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0006| A. In order to protect the financial stability of
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0007| title insurance underwriters doing business in the state, no
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0008| title insurance policy or commitment to issue title insurance
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0009| may be written unless the title insurer or its title insurance
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0010| agent has caused to be conducted a reasonable search and
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0011| examination of the title using an abstract plant meeting the
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0012| requirements of Section 59A-12-13 NMSA 1978 and has caused to be
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0013| made a determination of insurability of title in accordance with
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0014| sound underwriting practices. A title insurance policy or title
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0015| commitment is not and does not contain a statement of the
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0016| condition of title to real property. A title commitment is a
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0017| statement of the terms and conditions upon which the underwriter
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0018| is willing to issue its title insurance policy, which is a
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0019| contract of indemnity. This section neither establishes nor
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0020| creates a statutory duty owed to any seller of real estate by a
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0021| title insurer. Violations of this section shall be reported to
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0022| the superintendent for investigation and enforcement.
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0023| B. Evidence of the examination of title and
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0024| determination of insurability shall be preserved and retained in
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0025| the files of the title insurer or its title insurance agent for
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0001| a period of not less than fifteen years after the title
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0002| insurance policy has been issued. Instead of retaining the
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0003| original evidence, the title insurer or title insurance agent
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0004| may in the regular course of business establish a system whereby
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0005| all or part of the evidence is recorded, copied or reproduced by
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0006| any process that accurately and legibly reproduces or forms a
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0007| durable medium for reproducing the contents of the original.
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0008| This subsection shall not apply to:
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0009| (1) a title insurer assuming liability through
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0010| a contract of reinsurance; or
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0011| (2) a title insurer acting as coinsurer if one
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0012| of the other coinsuring title insurers has complied with this
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0013| section."
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0014|
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