0001| HOUSE BILL 1273
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0002| 43rd legislature - STATE OF NEW MEXICO - first session, 1997
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0003| INTRODUCED BY
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0004| HENRY KIKI SAAVEDRA
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0005|
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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| AN ACT
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0011| RELATING TO INSURANCE; PROVIDING FOR A NO-FAULT MOTOR VEHICLE
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0012| INSURANCE SYSTEM; ENACTING THE NO-FAULT INSURANCE ACT;
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0013| REPEALING THE MANDATORY FINANCIAL RESPONSIBILITY ACT; PROVIDING
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0014| ADMINISTRATIVE AND CRIMINAL PENALTIES; AMENDING, REPEALING AND
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0015| ENACTING SECTIONS OF THE NMSA 1978.
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0016|
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0017| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
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0018| Section 1. [NEW MATERIAL] SHORT TITLE.--Sections 1
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0019| through 23 of this act may be cited as the "No-Fault Insurance
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0020| Act".
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0021| Section 2. [NEW MATERIAL] DEFINITIONS.--As used in the
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0022| No-Fault Insurance Act:
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0023| A. "accident" means an occurance involving the
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0024| operation or use of a motor vehicle as a motor vehicle that
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0025| results in accidental bodily injury or property damage;
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0001| B. "accidental bodily injury" means bodily injury,
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0002| sickness, disease, disability or death resulting from an
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0003| accident, where the accident is unintended by the injured
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0004| person;
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0005| C. "added personal protection" means coverage that
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0006| provides the personal protection benefits described in Section
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0007| 5 of the No-Fault Insurance Act;
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0008| D. "basic personal protection" means coverage that
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0009| provides the personal protection benefits described in Section
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0010| 4 of the No-Fault Insurance Act;
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0011| E. "claim for relief" means a claim for economic or
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0012| non-economic loss, or both, arising from accidental bodily
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0013| injury proximately caused in whole or in part by the negligence
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0014| or intentional misconduct of another person; "claim for relief"
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0015| includes a claim by any individual other than the injured
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0016| person based on such injury;
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0017| F. "collateral benefit" means any benefit an
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0018| individual receives or is entitled to receive from any source,
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0019| other than basic or added personal protection, for economic
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0020| loss resulting from accidental bodily injury;
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0021| G. "driving under the influence of intoxicating
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0022| liquor or drug" means conduct that:
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0023| (1) is unlawful under Section 66-8-102 NMSA
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0024| 1978;
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0025| (2) results in revocation of driving
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0001| privileges under the Implied Consent Act; or
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0002| (3) results in a conviction described in
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0003| Subsection J of Section 66-8-102 NMSA 1978;
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0004| H. "economic loss" means pecuniary loss and
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0005| monetary expense incurred by or on behalf of an injured person;
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0006| I. "individual" means a natural person;
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0007| J. "injured person" means an individual who
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0008| sustains accidental bodily injury or the personal
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0009| representative of a deceased individual's estate;
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0010| K. "intentional misconduct" means any act or
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0011| failure to act intended to cause harm or which a reasonable
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0012| person would know would be likely to cause bodily injury or
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0013| property damage. "Intentional misconduct" does not include any
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0014| act or failure to act for the purpose of averting bodily harm
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0015| to any person;
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0016| L. "loss of income from work" means loss of income
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0017| from work the injured person would have performed, or
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0018| unemployment compensation benefits the person would have
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0019| received, but for accidental bodily injury, reduced by any
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0020| income from work actually performed or by any income that would
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0021| have been earned in available appropriate work that the injured
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0022| person unreasonably failed to undertake;
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0023| M. "medical expenses" means reasonable expenses for
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0024| medical services incurred by or on behalf of an injured person,
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0025| including necessary medical, chiropractic, surgical,
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0001| radiological, dental, ambulance, hospital, medical
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0002| rehabilitation, physical therapy and professional nursing
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0003| services, and drugs, medical equipment, medical supplies,
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0004| eyeglasses, hearing aids and prosthetic devices; but "medical
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0005| expenses" does not include:
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0006| (1) that portion of a charge for a room in a
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0007| hospital, clinic or convalescent or nursing home, or any other
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0008| institution engaged in providing nursing care and related
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0009| services, in excess of a reasonable and customary charge for
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0010| semiprivate accommodations, unless certified in writing as
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0011| medically required by the patient's health care provider; and
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0012| (2) treatments, services, products or
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0013| procedures that are experimental in nature, for research or not
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0014| primarily designed to serve a medical purpose;
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0015| N. "medical rehabilitation" means rehabilitation
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0016| services that are reasonable and necessary to reduce an injured
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0017| person's disability and restore him to his pre-accident level
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0018| of physical functioning;
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0019| O. "motor vehicle" means a self-propelled vehicle
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0020| of a kind required to be registered pursuant to the Motor
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0021| Vehicle Code for use on public streets and highways, other than
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0022| a vehicle with three or fewer load-bearing wheels;
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0023| P. "non-economic loss" means any loss other than
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0024| economic loss;
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0025| Q. "operation or use" means operation or use of a
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0001| motor vehicle as a motor vehicle, including operating,
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0002| occupying, entering or alighting from it, but does not include:
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0003| (1) conduct within the course of the business
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0004| of manufacturing, repairing, servicing, maintaining, washing or
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0005| selling motor vehicles, unless the conduct occurs while engaged
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0006| in the operation or use of the vehicle; and
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0007| (2) conduct in the course of loading or
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0008| unloading a motor vehicle unless the conduct occurs while
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0009| engaged in the operation or use of the vehicle;
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0010| R. "owner" means the person, other than a
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0011| lienholder or secured party, who owns or has title to a motor
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0012| vehicle or is entitled to the use and possession of a motor
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0013| vehicle subject to a security interest held by another person,
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0014| but "owner" does not include a lessee under a short-term lease
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0015| or rental agreement not intended as security;
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0016| S. "person" means an individual or any entity
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0017| recognized by the law;
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0018| T. "personal protection benefits" means benefits
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0019| payable without regard to fault for economic loss resulting
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0020| from accidental bodily injury, including basic personal
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0021| protection and added personal protection;
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0022| U. "personal protection insured" means:
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0023| (1) any named insured of a personal protection
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0024| policy;
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0025| (2) any individual customarily residing with a
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0001| named insured even though temporarily residing elsewhere,
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0002| including a student, who is:
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0003| (a) a spouse or blood-relative of a
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0004| named insured; or
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0005| (b) a minor in a named insured's custody
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0006| who has not reached the age of majority; or
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0007| (3) with respect to accidents within New
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0008| Mexico, an individual who sustains accidental bodily injury
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0009| while engaged in the operation or use of a motor vehicle
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0010| insured or deemed insured by the No-Fault Insurance Act for
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0011| personal protection benefits, or who, while not occupying any
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0012| motor vehicle, sustains accidental bodily injury caused by a
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0013| motor vehicle so insured;
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0014| V. "personal protection insurer" means an insurer
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0015| or qualified self-insurer that provides personal protection
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0016| benefits;
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0017| W. "personal protection policy" means a policy of
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0018| insurance or self-insurance plan that provides or is deemed to
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0019| provide at least basic personal protection benefits and
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0020| compulsory financial responsibility coverage as provided in the
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0021| No-Fault Insurance Act;
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0022| X. "replacement personal services" means expenses
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0023| reasonably incurred in obtaining ordinary and necessary
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0024| services from others, not members of the injured person's
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0025| household, to replace those the injured person would have
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0001| performed for the benefit of the household but for the
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0002| accidental bodily injury;
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0003| Y. "serious injury" means accidental bodily injury
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0004| that results in death, permanent serious disfigurement or
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0005| permanent serious impairment;
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0006| Z. "superintendent" means the superintendent of
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0007| insurance;
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0008| AA. "uncompensated economic loss" means that
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0009| portion of economic loss of an injured person that exceeds
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0010| personal protection benefits, collision coverage, if any, and
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0011| collateral benefits, except for loss resulting from a
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0012| deductible; and
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0013| BB. "uninsured motorist" means an owner or other
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0014| person required to maintain a personal protection policy on a
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0015| motor vehicle pursuant to Section 3 of the No-Fault Insurance
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0016| Act that fails to maintain the required policy.
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0017| Section 3. [NEW MATERIAL] MOTOR VEHICLE INSURANCE
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0018| REQUIREMENTS--PENALTY.--
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0019| A. Each motor vehicle shall be covered under a
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0020| personal protection policy.
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0021| B. Every personal protection policy issued pursuant
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0022| to the No-Fault Insurance Act shall provide, at a minimum,
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0023| basic personal protection, together with compulsory financial
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0024| responsibility coverage as required in Subsection B of Section
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0025| 11 of the No-Fault Insurance Act.
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0001| C. In addition to mandatory basic personal
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0002| protection and compulsory financial responsibility coverage,
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0003| every personal protection insurer shall make available
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0004| additional insurance coverages, including added personal
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0005| protection, bodily injury and property damage liability,
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0006| collision and comprehensive physical damage.
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0007| D. Any person who violates the provisions of
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0008| Subsection A of this section is guilty of a misdemeanor and
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0009| upon conviction shall be sentenced to a fine not to exceed
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0010| three hundred dollars ($300).
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0011| Section 4. [NEW MATERIAL] BASIC PERSONAL PROTECTION
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0012| COVERAGE.--Basic personal protection coverage shall consist of
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0013| benefits with an aggregate limit of fifteen thousand dollars
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0014| ($15,000) per person per accident for economic loss resulting
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0015| from accidental bodily injury, as follows:
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0016| A. medical expenses;
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0017| B. eighty percent of loss of income from work not
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0018| to exceed four hundred dollars ($400) per week;
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0019| C. if the injured person is not receiving benefits
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0020| for loss of income from work, replacement personal services
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0021| loss not to exceed two hundred dollars ($200) per week; and
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0022| D. death, ten thousand dollars ($10,000) if death
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0023| of the injured person results from and occurs within one year
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0024| after the date of the accident.
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0025| Section 5. [NEW MATERIAL] ADDED PERSONAL PROTECTION
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0001| COVERAGE.--Each personal protection insurer shall make
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0002| available added personal protection coverage, with coverage
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0003| limits and sublimits in excess of those prescribed for basic
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0004| personal protection coverage, in increments up to an aggregate
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0005| limit of not less than one hundred thousand dollars ($100,000)
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0006| per person per accident, in accordance with regulations adopted
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0007| and promulgated, and using coverage forms filed and approved,
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0008| by the superintendent.
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0009| Section 6. [NEW MATERIAL] PERSONS NOT ENTITLED TO
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0010| PERSONAL PROTECTION BENEFITS.--Personal protection benefits
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0011| shall not be paid to or on behalf of an injured person if at
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0012| the time of the accident the injured person:
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0013| A. was committing a felony or was voluntarily
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0014| occupying a motor vehicle that he knew to be stolen;
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0015| B. was driving under the influence of intoxicating
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0016| liquor or drug;
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0017| C. was engaged in intentional misconduct in the
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0018| operation of the motor vehicle; or
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0019| D. was an uninsured motorist, whether occupying the
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0020| uninsured vehicle or otherwise.
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0021| Section 7. [NEW MATERIAL] PAYMENT OF PERSONAL
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0022| PROTECTION BENEFITS.--Every contract providing personal
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0023| protection benefits shall provide for payment of benefits to:
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0024| A. the injured person;
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0025| B. the injured person's parent or guardian if the
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0001| injured person is an unemancipated minor or incompetent; or
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0002| C. the injured person's spouse or personal
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0003| representative if the injured person has died.
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0004| Section 8. [NEW MATERIAL] LOSS OF INCOME FROM WORK--
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0005| LIMITATION.--Payment of basic personal protection benefits for
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0006| loss of income from work shall not be made for loss incurred
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0007| after the injured person's death or more than two years after
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0008| the date of the accident.
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0009| Section 9. [NEW MATERIAL] REVIEW OF MEDICAL EXPENSES--
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0010| LIMITATIONS.--
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0011| A. A personal protection insurer may review medical
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0012| expenses to assure that the expenses are reasonable and
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0013| necessary.
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0014| B. Payment of basic personal protection benefits
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0015| for medical expenses shall not be made for loss incurred more
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0016| than two years after the date of the accident.
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0017| Section 10. [NEW MATERIAL] REPLACEMENT PERSONAL
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0018| SERVICES LOSS--LIMITATION.--Payment of basic personal
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0019| protection benefits for replacement personal services loss
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0020| shall not be made during any period for which the injured
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0021| person is receiving benefits for loss of income from work.
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0022| Payment of basic personal protection benefits shall not be made
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0023| for loss incurred after the injured person's death, or more
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0024| than two years after the date of the accident.
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0025| Section 11. [NEW MATERIAL] GEOGRAPHIC APPLICATION OF
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0001| PERSONAL PROTECTION POLICIES.--
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0002| A. A personal protection insurer shall pay personal
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0003| protection benefits to a personal protection insured for
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0004| accidental bodily injury sustained within any jurisdiction of
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0005| the United States, its territories and possessions and Canada.
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0006| B. Every personal protection policy issued pursuant
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0007| to the No-Fault Insurance Act shall provide coverage that
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0008| satisfies the compulsory financial responsibility requirements
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0009| of every jurisdiction within the United States, its territories
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0010| and possessions and Canada.
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0011| Section 12. [NEW MATERIAL] PRIORITY OF BENEFITS.--
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0012| A. Except as provided otherwise in Section 6 of the
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0013| No-Fault Insurance Act, personal protection policies are liable
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0014| to pay personal compensation benefits in the following order of
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0015| priority, up to their respective coverage limits:
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0016| (1) the policy covering an injured person's
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0017| employer's motor vehicle, if injury occurs in the course of the
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0018| person's operation or use of the motor vehicle or the person is
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0019| injured by the employer's motor vehicle while not engaged in
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0020| the operation or use of any motor vehicle;
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0021| (2) the policy covering a motor vehicle used
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0022| principally for transportation for hire of persons or property,
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0023| if the injured person was occupying the vehicle or was injured
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0024| by the vehicle while not engaged in the operation or use of any
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0025| motor vehicle;
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0001| (3) the policy covering a motor vehicle
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0002| involved in the accident, if the injured person was engaged in
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0003| the operation or use of the vehicle or was injured by the
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0004| vehicle while not engaged in the operation or use of any motor
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0005| vehicle;
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0006| (4) a policy covering a motor vehicle not
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0007| involved in the accident, if the injured person is a named
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0008| insured; and
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0009| (5) a policy covering a motor vehicle not
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0010| involved in the accident, if the injured person is an insured
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0011| other than a named insured.
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0012| B. If two or more insurers are obligated to pay
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0013| personal protection benefits, the insurer against whom the
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0014| claim is first made shall pay the claim and may thereafter
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0015| recover from any other insurer at the same or a higher priority
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0016| level for the costs of the payments and for processing the
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0017| claim. Recovery from an insurer at the same priority level
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0018| shall be made pro rata, based on policy limits.
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0019| Section 13. [NEW MATERIAL] OTHER SOURCES OF INDEMNITY
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0020| FOR BASIC PERSONAL PROTECTION BENEFITS.--
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0021| A. Basic personal protection benefits coverage is
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0022| primary over all collateral benefits, except social security,
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0023| public assistance and workers' compensation benefits, which
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0024| shall be deducted from the basic personal protection benefits
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0025| payable to the injured person; provided that collateral
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0001| benefits so deducted shall not operate to reduce or be credited
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0002| against the limits of liability of the personal protection
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0003| policy.
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0004| B. A payor of personal protection benefits,
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0005| collateral benefits or other benefits as a result of an
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0006| accident shall not recover any amount against an injured person
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0007| or his personal protection insurer pursuant to a right of
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0008| subrogation or otherwise, and shall not be subrogated to any
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0009| rights the injured person or his personal protection insurer
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0010| may have against another person, except as provided in
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0011| Subsection C of this section.
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0012| C. A personal protection insurer is subrogated, to
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0013| the extent of its payment of personal protection benefits, to
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0014| all of the rights of its personal protection insured with
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0015| respect to a motor vehicle accident caused in whole or in part
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0016| by:
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0017| (1) negligence of an uninsured motorist;
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0018| (2) negligence of the owner or operator of a
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0019| motor vehicle that results in serious injury;
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0020| (3) driving under the influence of
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0021| intoxicating liquor or drug; or
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0022| (4) intentional misconduct.
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0023| Section 14. [NEW MATERIAL] LEGAL LIABILITY--EXEMPTION
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0024| OF PERSONAL PROTECTION INSURED.--
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0025| A. No injured person shall have a claim or cause of
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0001| action in tort or otherwise against any personal protection
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0002| insured, including any person for whom that personal protection
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0003| insured is vicariously liable, for accidental bodily injury or
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0004| property damage that arises from the ownership, operation or
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0005| use of a motor vehicle, except for uncompensated economic loss,
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0006| subject to the provisions of Subsections B, C, D and E of this
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0007| section.
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0008| B. No uninsured motorist shall have any right to
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0009| personal compensation benefits or any cause of action in tort
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0010| or otherwise against a personal protection insured arising from
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0011| an accident, except for economic loss from accidental bodily
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0012| injury in excess of fifteen thousand dollars ($15,000), or from
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0013| property damage in excess of ten thousand dollars ($10,000),
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0014| unless the personal protection insured was driving under the
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0015| influence of intoxicating liquor or drug or engaged in
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0016| intentional misconduct.
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0017| C. A personal protection insured retains his claims
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0018| and causes of action in tort and otherwise with respect to a
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0019| motor vehicle accident caused in whole or in part by:
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0020| (1) negligence of an uninsured motorist;
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0021| (2) negligence of the owner or operator of a
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0022| motor vehicle that results in serious injury;
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0023| (3) driving under the influence of
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0024| intoxicating liquor or drug; or
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0025| (4) intentional misconduct.
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0001| As part of such a claim, the injured person may claim and
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0002| recover personal protection benefits up to the limits specified
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0003| in the other person's personal protection policy, if any, plus
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0004| reasonable attorney fees under Subsection D of this section.
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0005| D. Any recovery pursuant to Subsections A through C
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0006| of this section shall include reasonable expenses and attorney
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0007| fees incurred in recovering damages and benefits. No part of
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0008| the expenses and attorney fees may be deducted from benefits
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0009| due the injured person; provided, that all or part of the
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0010| attorney fees may be deducted from the benefits otherwise owing
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0011| if all or part of the claim was fraudulent.
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0012| E. No person driving under the influence of
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0013| intoxicating liquor or drug or engaging in intentional
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0014| misconduct shall have any claim or cause of action in tort or
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0015| otherwise against a personal protection insured.
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0016| Section 15. [NEW MATERIAL] CAUSES OF ACTION FOR
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0017| INJURY--DEDUCTION.--No deduction shall be made from personal
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0018| protection benefits based on the value of a cause of action for
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0019| injury; provided that after recovery is received, a deduction
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0020| may be made in the amount of the net recovery, exclusive of
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0021| attorney fees and expenses incurred in obtaining the recovery.
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0022| If personal protection benefits have already been received, the
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0023| personal protection insurer may require the recipient to
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0024| reimburse a sum equal to the personal protection benefits
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0025| received, not to exceed the net recovery. The insurer shall
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0001| have a lien on the net recovery to this extent.
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0002| Any remainder of the net recovery from such a cause of
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0003| action shall be credited against future loss as it accrues,
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0004| until an amount equal to the net recovery has been deducted.
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0005| Any additional loss shall then be payable from personal
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0006| protection benefits, up to the applicable coverage limits.
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0007| Any deduction from loss pursuant to this section shall not
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0008| operate to reduce or be credited against the coverage limits of
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0009| the personal compensation policy.
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0010| Section 16. [NEW MATERIAL] PERIODIC PAYMENT OF
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0011| PERSONAL PROTECTION BENEFITS.--
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0012| A. Personal protection benefits are payable monthly
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0013| as loss accrues, except as provided otherwise in Subsection B
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0014| of this section. Benefits are overdue if they are not paid
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0015| within thirty days after the personal protection insurer
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0016| receives reasonable proof of loss; provided that the personal
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0017| protection insurer may accumulate claims for a period of not to
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0018| exceed one month, in which case benefits are not overdue if
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0019| they are paid within twenty days after the period of
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0020| accumulation.
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0021| B. If reasonable proof of loss is not supplied for
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0022| the whole claim, the amount supported by reasonable proof is
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0023| overdue if it is not paid as provided in Subsection A of this
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0024| section. Any part of the unpaid remainder of the claim that is
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0025| later supported by reasonable proof is overdue if it is not
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0001| paid within thirty days after the insurer receives the proof.
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0002| C. For purposes of this section, payment shall be
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0003| deemed made on the date a draft or other valid instrument is
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0004| mailed or, if not mailed, the date of delivery to the claimant.
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0005| Benefits not timely paid shall be subject to interest at the
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0006| rate of one and one-half percent per month or portion of a
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0007| month they are late, compounded monthly. Interest due shall be
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0008| paid automatically without demand at the time the benefit is
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0009| paid.
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0010| D. If overdue benefits are recovered against a
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0011| personal protection insurer or are paid by a personal
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0012| protection insurer only after complaint to the superintendent
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0013| or the filing of suit, reasonable expenses and attorney fees
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0014| shall be paid as provided in Subsection D of Section 14 of the
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0015| No-Fault Insurance Act.
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0016| E. A personal protection insurer may pay personal
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0017| protection benefits directly to a person who supplies necessary
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0018| products, services or facilities to the injured person, subject
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0019| to the provisions on timely payment specified in Subsections A
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0020| through D of this section.
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0021| Section 17. [NEW MATERIAL] CANCELLATION OR NONRENEWAL
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0022| PROHIBITED--PENALTY.--A personal protection insurer shall not
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0023| cancel, refuse to renew or increase the premium of a personal
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0024| protection policy based solely on a claim for personal
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0025| protection benefits or collision damage to an insured motor
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0001| vehicle, unless the insured was at least fifty percent at fault
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0002| for the accident. In addition to any other penalties provided
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0003| by law, the superintendent shall impose a civil penalty of one
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0004| thousand dollars ($1,000) for each violation of this section.
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0005| Section 18. [NEW MATERIAL] VERIFICATION OF ENTITLEMENT
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0006| TO BENEFITS.--
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0007| A. If requested by a personal protection insurer,
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0008| an employer shall provide confirmation of employment and of
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0009| personal protection benefits coverage on a form approved by the
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0010| superintendent regarding an employee who has filed a claim for
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0011| personal protection benefits.
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0012| B. Every person providing services upon which a
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0013| claim for medical expenses is based shall furnish a written
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0014| report of the history, condition, treatment, dates and costs of
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0015| the injured person's treatment to the person's personal
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0016| protection insurer, upon request. Every such person shall also
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0017| produce and permit the inspection and copying of its records
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0018| regarding the medical treatment.
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0019| C. No cause of action for violation of a physician-
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0020| patient privilege or invasion of the right of privacy may be
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0021| asserted against any provider complying with the provisions of
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0022| this section.
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0023| D. Any person requesting records pursuant to this
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0024| section shall pay all reasonable costs connected therewith and
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0025| shall be responsible to assure the confidentiality of the
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0001| records.
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0002| Section 19. [NEW MATERIAL] MANAGED CARE.--A personal
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0003| protection insurer may use managed care systems, including
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0004| health maintenance and preferred provider organizations, and
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0005| may require an injured person to obtain health care through a
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0006| managed care system designated by the personal protection
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0007| insurer, if the named insured opts at the time of purchase of
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0008| personal protection coverage to be subject to a managed care
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0009| system at an appropriately reduced premium. The value of
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0010| benefits shall be based on the actual cost to the insurer for
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0011| purposes of personal protection benefits limits.
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0012| Section 20. [NEW MATERIAL] SAFETY EQUIPMENT.--The
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0013| superintendent shall adopt rules that authorize personal
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0014| protection insurers to institute incentives for personal
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0015| protection insureds to install, maintain and make use of safety
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0016| devices such as seat and harness belts, air bags and child
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0017| restraint systems. Incentives shall not include loss of
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0018| coverage if such devices are not used.
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0019| Section 21. [NEW MATERIAL] REGULATIONS.--The
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0020| superintendent may adopt and promulgate regulations, policies
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0021| and procedures to implement the provisions of the No-Fault
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0022| Insurance Act.
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0023| Section 22. [NEW MATERIAL] ARBITRATION.--A personal
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0024| protection insurer may include an arbitration clause in any
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0025| personal protection policy as a method of resolving disputes
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0001| regarding personal protection coverage or benefits between a
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0002| personal protection insurer and an injured person.
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0003| Section 23. [NEW MATERIAL] OUT-OF-STATE VEHICLES.--
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0004| A. Each insurer authorized to transact business or
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0005| transacting business in New Mexico shall file with the
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0006| superintendent, on a form approved by him, a sworn statement
|
0007| that all of its contracts of motor vehicle liability insurance
|
0008| issued outside New Mexico covering the operation or use of a
|
0009| motor vehicle shall be deemed to meet the requirements and
|
0010| satisfy the minimum benefits provisions of Section 3 of the No-
|
0011| Fault Insurance Act while the motor vehicle is in this state.
|
0012| B. If a person is entitled to personal protection
|
0013| benefits or their equivalent under the requirements of more
|
0014| than one state, the person shall elect to recover under the
|
0015| laws of one state. The election represents the exclusive
|
0016| source of recovery of all personal protection benefits, or
|
0017| their equivalent, paid or payable under the financial
|
0018| responsibility requirements of that or any other state.
|
0019| C. An out-of-state motor vehicle not subject to the
|
0020| requirement of a personal protection policy under Section 3 of
|
0021| the No-Fault Insurance Act shall be deemed to be covered by
|
0022| such a policy if it is covered by insurance that provides
|
0023| coverage meeting the minimum financial responsibility
|
0024| requirements of New Mexico. In that case, occupants of the
|
0025| vehicle and any persons not occupying any motor vehicle who are
|
0001| injured by the vehicle shall have the rights and
|
0002| responsibilities of, and be subject to the limitations on,
|
0003| personal protection insureds pursuant to the No-Fault Insurance
|
0004| Act.
|
0005| Section 24. Section 59A-7-7 NMSA 1978 (being Laws 1984,
|
0006| Chapter 127, Section 113) is amended to read:
|
0007| "59A-7-7. "VEHICLE" INSURANCE DEFINED.--"Vehicle"
|
0008| insurance is insurance covering:
|
0009| A. physical damage. Insurance against loss of or
|
0010| damage to any land vehicle or aircraft or any draft or riding
|
0011| animal resulting from or incident to ownership, maintenance or
|
0012| use of any such vehicle, aircraft or animal;
|
0013| B. public liability and property damage. Insurance
|
0014| against any hazard or cause, and against any loss, liability or
|
0015| expense resulting from or incident to ownership, maintenance or
|
0016| use of any such vehicle, aircraft or animal;
|
0017| C. cargo. Insurance against loss of or damage to
|
0018| property contained in a vehicle or being loaded or unloaded
|
0019| therein or therefrom or incident to the ownership, maintenance
|
0020| or use of any such vehicle, aircraft or animal; [and]
|
0021| D. medical payments. Insurance for payment on
|
0022| behalf of the injured party or for reimbursement of the insured
|
0023| for payment, irrespective of legal liability of the insured, of
|
0024| medical, hospital, surgical and disability benefits, to persons
|
0025| injured and funeral and death benefits to dependents,
|
0001| beneficiaries or personal representatives of persons killed as
|
0002| the result of an accident, resulting from or incident to
|
0003| ownership, maintenance or use of any such vehicle, aircraft or
|
0004| animal. Such coverage shall not be deemed to be "health"
|
0005| insurance for purposes of the Insurance Code; and
|
0006| E. personal protection. Insurance with benefits as
|
0007| described in the No-Fault Insurance Act. Personal compensation
|
0008| insurance shall not be deemed health insurance."
|
0009| Section 25. Section 59A-32-3 NMSA 1978 (being Laws 1984,
|
0010| Chapter 127, Section 521) is amended to read:
|
0011| "59A-32-3. PURPOSE OF ASSIGNED RISK PLAN.--The purpose of
|
0012| the assigned risk plan is to provide for the equitable
|
0013| distribution and apportionment among insurers authorized to
|
0014| transact in this state the business of [automobile and] motor
|
0015| vehicle bodily injury, personal protection, property damage
|
0016| liability and physical damage insurance, of insurance afforded
|
0017| applicants who are in good faith entitled to, but who are
|
0018| unable to procure, such insurance through ordinary methods."
|
0019| Section 26. Section 59A-32-5 NMSA 1978 (being Laws 1984,
|
0020| Chapter 127, Section 523) is amended to read:
|
0021| "59A-32-5. REQUIREMENTS OF ASSIGNED RISK PLANS.--Any such
|
0022| agreement or plan for the assignment of risks involving
|
0023| [automobile and] motor vehicle bodily injury, personal
|
0024| protection and property damage liability insurance shall
|
0025| include provision for:
|
0001| A. reasonable rules governing the equitable
|
0002| distribution of risks by direct insurance, reinsurance or
|
0003| otherwise, and by the assignment of risks to insurers
|
0004| participating in the plan;
|
0005| B. rates and reasonable rate modifications which
|
0006| shall be applicable to such risks and which shall not be
|
0007| excessive, inadequate or unfairly discriminatory;
|
0008| C. the limits of liability which any insurer to
|
0009| whom a risk is assigned shall be required to assume; and
|
0010| D. a method whereby applicants for insurance,
|
0011| persons insured and insurers under the plan may have a hearing
|
0012| on grievances and the right to appeal from the decision on any
|
0013| such grievance to the superintendent."
|
0014| Section 27. Section 59A-32-6 NMSA 1978 (being Laws 1984,
|
0015| Chapter 127, Section 524) is amended to read:
|
0016| "59A-32-6. REVIEW OF PROPOSED ASSIGNED RISK PLANS.--Every
|
0017| such plan for the assignment of risks involving [automobile
|
and] motor vehicle bodily injury, personal protection and
|
0019| property damage liability insurance shall be filed in writing
|
0020| with the superintendent. The superintendent shall review the
|
0021| plan as soon as reasonably possible after filing, to determine
|
0022| whether or not it meets the requirements of Section [523 of
|
this article] 59A-32-5 NMSA 1978. Each plan shall be on
|
0024| file with the superintendent for a waiting period of thirty
|
0025| [(30)] days before it becomes effective, unless sooner
|
0001| approved in writing. Unless disapproved in writing by the
|
0002| superintendent within the thirty [(30)] day waiting period, a
|
0003| plan shall be deemed approved and shall become effective upon
|
0004| the expiration of that period."
|
0005| Section 28. Section 59A-32-8 NMSA 1978 (being Laws 1984,
|
0006| Chapter 127, Section 526) is amended to read:
|
0007| "59A-32-8. FAILURE TO FILE PLAN--ASSIGNED RISK PLAN
|
0008| PRESCRIBED.--If no plan [which] that meets the requirements
|
0009| of Section [523 of this article above] 59A-32-5 NMSA 1978
|
0010| has been filed with the superintendent within ninety [(90)]
|
0011| days after [June 30, 1959] the effective date of the No-
|
0012| Fault Insurance Act, or within the period stated in any order
|
0013| [which] that disapproves an existing plan, the
|
0014| superintendent may formulate and prescribe a plan [which]
|
0015| that does meet such requirements, after hearing or
|
0016| consultation with insurers authorized to transact in this state
|
0017| the business of [automobile and] motor vehicle bodily injury,
|
0018| personal protection and property damage liability insurance.
|
0019| When any plan [or plans] or amendment thereto has [or have]
|
0020| been approved or prescribed, no insurer to which [such] the
|
0021| plan is applicable shall thereafter issue any policy of such
|
0022| insurance, or undertake to transact such business in this
|
0023| state, unless the insurer participates in [such] the plan."
|
0024| Section 29. Section 66-1-4.3 NMSA 1978 (being Laws 1990,
|
0025| Chapter 120, Section 4) is amended to read:
|
0001| "66-1-4.3. DEFINITIONS.--As used in the Motor Vehicle
|
0002| Code:
|
0003| A. "camping body" means a vehicle body primarily
|
0004| designed or converted for use as temporary living quarters for
|
0005| recreational, camping or travel activities;
|
0006| B. "camping trailer" means a camping body that
|
0007| exceeds neither eight feet in width nor forty feet in length,
|
0008| mounted on a chassis, or frame with wheels, designed to be
|
0009| drawn by another vehicle and that has collapsible partial side
|
0010| walls that fold for towing and unfold at the campsite;
|
0011| C. "cancellation" means that a driver's license is
|
0012| annulled and terminated because of some error or defect or
|
0013| because the licensee is no longer entitled to the license, but
|
0014| cancellation of a license is without prejudice, and application
|
0015| for a new license may be made at any time after cancellation;
|
0016| D. "casual sale" means the sale of a motor vehicle
|
0017| by the registered owner of the vehicle if the owner has not
|
0018| sold more than four vehicles in that calendar year;
|
0019| [E. "certified motor vehicle liability policy"
|
means an owner's policy or a driver's policy of liability
|
insurance to or for the benefit of the person named therein as
|
insured, certified as provided in the Motor Vehicle Code and
|
meeting the requirements of the Motor Vehicle Code as evidence
|
of financial responsibility and issued by an insurance carrier
|
duly authorized to transact business in New Mexico;
|
F.] E. "chassis" means the complete motor
|
0002| vehicle, including standard factory equipment, exclusive of the
|
0003| body and cab;
|
0004| [G.] F. "collector" means a person who is the
|
0005| owner of one or more vehicles of historic or special interest
|
0006| who collects, purchases, acquires, trades or disposes of these
|
0007| vehicles or parts thereof for the person's own use in order to
|
0008| preserve, restore and maintain a similar vehicle for hobby
|
0009| purposes;
|
0010| [H.] G. "combination" means any connected
|
0011| assemblage of a motor vehicle and one or more semitrailers,
|
0012| trailers or semitrailers converted to trailers by means of a
|
0013| converter gear;
|
0014| [I.] H. "combination gross vehicle weight"
|
0015| means the sum total of the gross vehicle weights of all units
|
0016| of a combination;
|
0017| [J.] I. "commerce" means the transportation of
|
0018| persons, property or merchandise for hire, compensation, profit
|
0019| or in the furtherance of a commercial enterprise in this state
|
0020| or between New Mexico and a place outside New Mexico, including
|
0021| a place outside the United States;
|
0022| [K.] J. "commercial motor vehicle" means a
|
0023| motor vehicle used in commerce:
|
0024| (1) if the vehicle has a declared gross
|
0025| vehicle weight rating of twenty-six thousand one or more
|
0001| pounds;
|
0002| (2) if the vehicle is designed to transport
|
0003| sixteen or more passengers, including the driver; or
|
0004| (3) if the vehicle is transporting hazardous
|
0005| materials and is required to be placarded pursuant to
|
0006| applicable law;
|
0007| [L.] K. "controlled-access highway" means every
|
0008| highway, street or roadway in respect to which owners or
|
0009| occupants of abutting lands and other persons have no legal
|
0010| right of access to or from the highway, street or roadway
|
0011| except at those points only and in the manner as may be
|
0012| determined by the public authority having jurisdiction over the
|
0013| highway, street or roadway;
|
0014| [M.] L. "controlled substance" means any
|
0015| substance defined in Section 30-31-2 NMSA 1978 as a controlled
|
0016| substance;
|
0017| [N.] M. "converter gear" means any assemblage
|
0018| of one or more axles with a fifth wheel mounted thereon,
|
0019| designed for use in a combination to support the front end of a
|
0020| semitrailer but not permanently attached thereto. A converter
|
0021| gear shall not be considered a vehicle, as that term is defined
|
0022| in Section 66-1-4.19 NMSA 1978, but weight attributable thereto
|
0023| shall be included in declared gross weight;
|
0024| [O.] N. "conviction" means the alleged violator
|
0025| has entered a plea of guilty or nolo contendere or has been
|
0001| found guilty in the trial court and has waived or exhausted all
|
0002| rights to an appeal;
|
0003| [P.] O. "crosswalk" means:
|
0004| (1) that part of a roadway at an intersection
|
0005| included within the connections of the lateral lines of the
|
0006| sidewalks on opposite sides of the highway measured from the
|
0007| curbs or, in the absence of curbs, from the edges of the
|
0008| traversable roadway; and
|
0009| (2) any portion of a roadway at an
|
0010| intersection or elsewhere distinctly indicated for pedestrian
|
0011| crossing by lines or other markings on the surface; and
|
0012| [Q.] P. "curb cut" means a short ramp through a
|
0013| curb or built up to the curb."
|
0014| Section 30. Section 66-1-4.6 NMSA 1978 (being Laws 1990,
|
0015| Chapter 120, Section 7) is amended to read:
|
0016| "66-1-4.6. DEFINITIONS.--As used in the Motor Vehicle
|
0017| Code:
|
0018| A. "farm tractor" means every motor vehicle
|
0019| designed and used primarily as a farm implement for drawing
|
0020| plows, mowing machines and other implements of husbandry;
|
0021| [B. "financial responsibility" means the ability
|
to respond in damages for liability resulting from traffic
|
accidents arising out of the ownership, maintenance or use of a
|
motor vehicle of a type subject to registration under the laws
|
of New Mexico, in the amounts not less than that specified in
|
the Mandatory Financial Responsibility Act; the term includes a
|
motor vehicle liability policy, a certified motor vehicle
|
liability policy, a surety bond or evidence of a sufficient
|
cash deposit with the state treasurer;
|
C.] B. "first offender" means a person who for
|
0006| the first time under state or federal law or municipal
|
0007| ordinance has been adjudicated guilty of the charge of driving
|
0008| a motor vehicle while under the influence of intoxicating
|
0009| liquor or any other drug that renders the person incapable of
|
0010| safely driving a motor vehicle, regardless of whether the
|
0011| person's sentence was suspended or deferred;
|
0012| [D.] C. "flammable liquid" means any liquid
|
0013| that has a flash point of seventy degrees fahrenheit or less,
|
0014| as determined by a tagliabue or equivalent closed-cup test
|
0015| device;
|
0016| [E.] D. "foreign jurisdiction" means any
|
0017| jurisdiction other than a state of the United States or the
|
0018| District of Columbia;
|
0019| [F.] E. "foreign vehicle" means every vehicle
|
0020| of a type required to be registered under the provisions of the
|
0021| Motor Vehicle Code brought into this state from another state,
|
0022| territory or country; and
|
0023| [G.] F. "freight trailer" means any trailer,
|
0024| semitrailer or pole trailer drawn by a truck tractor or road
|
0025| tractor, and any trailer, semitrailer or pole trailer drawn by
|
0001| a truck that has a gross vehicle weight of more than twenty-six
|
0002| thousand pounds, but the term does not include manufactured
|
0003| homes, trailers of less than one-ton carrying capacity used to
|
0004| transport animals, or fertilizer trailers of less than three
|
0005| thousand five hundred pounds empty weight."
|
0006| Section 31. Section 66-1-4.11 NMSA 1978 (being Laws 1990,
|
0007| Chapter 120, Section 12) is amended to read:
|
0008| "66-1-4.11. DEFINITIONS.--As used in the Motor Vehicle
|
0009| Code:
|
0010| A. "mail" means any item properly addressed with
|
0011| postage prepaid delivered by the United States postal service
|
0012| or any other public or private enterprise primarily engaged in
|
0013| the transport and delivery of letters, packages and other
|
0014| parcels;
|
0015| B. "manufactured home" means a moveable or portable
|
0016| housing structure that exceeds either a width of eight feet or
|
0017| a length of forty feet, constructed to be towed on its own
|
0018| chassis and designed to be installed with or without a
|
0019| permanent foundation for human occupancy;
|
0020| C. "manufacturer" means every person engaged in the
|
0021| business of constructing or assembling vehicles of a type
|
0022| required to be registered under the Motor Vehicle Code;
|
0023| D. "manufacturer's certificate of origin" means a
|
0024| certification, on a form supplied by or approved by the
|
0025| division, signed by the manufacturer that the new vehicle
|
0001| described therein has been transferred to the New Mexico dealer
|
0002| or distributor named therein or to a dealer duly licensed or
|
0003| recognized as such in another state, territory or possession of
|
0004| the United States and that such transfer is the first transfer
|
0005| of the vehicle in ordinary trade and commerce; every such
|
0006| certificate shall contain space for proper reassignment to a
|
0007| New Mexico dealer or to a dealer duly licensed or recognized as
|
0008| such in another state, territory or possession of the United
|
0009| States, and the certificate shall contain a description of the
|
0010| vehicle, the number of cylinders, type of body, engine number
|
0011| and the serial number or other standard identification number
|
0012| provided by the manufacturer of the vehicle;
|
0013| E. "metal tire" means every tire of which the
|
0014| surface in contact with the highway is wholly or partly of
|
0015| metal or other hard nonresilient material, except that a snow
|
0016| tire with metal studs designed to increase traction on ice or
|
0017| snow is not considered a metal tire;
|
0018| F. "moped" means a two-wheeled or three-wheeled
|
0019| vehicle with an automatic transmission and a motor having a
|
0020| piston displacement of less than fifty cubic centimeters, that
|
0021| is capable of propelling the vehicle at a maximum speed of not
|
0022| more than thirty miles an hour on level ground, at sea level;
|
0023| G. "motorcycle" means every motor vehicle having a
|
0024| seat or saddle for the use of the rider and designed to travel
|
0025| on not more than three wheels in contact with the ground,
|
0001| excluding a tractor;
|
0002| H. "motor home" means a camping body built on a
|
0003| self-propelled motor vehicle chassis so designed that seating
|
0004| for driver and passengers is within the body itself; and
|
0005| I. "motor vehicle" means every vehicle that is
|
0006| self-propelled and every vehicle that is propelled by electric
|
0007| power obtained from batteries or from overhead trolley wires,
|
0008| but not operated upon rails; but for the purposes of the
|
0009| Mandatory Financial Responsibility Act, "motor vehicle" does
|
0010| not include "special mobile equipment" [; and
|
J. "motor vehicle liability policy" means an
|
owner's policy or a driver's policy of liability insurance,
|
providing limits of coverage not less than the dollar amounts
|
set forth in the Mandatory Financial Responsibility Act as
|
evidence of financial responsibility, and issued by an
|
insurance carrier duly authorized to transact business in New
|
Mexico]."
|
0018| Section 32. REPEAL.--Sections 66-5-201 through 66-5-239
|
0019| NMSA 1978 (being Laws 1978, Chapter 35, Section 277, Laws 1983,
|
0020| Chapter 318, Section 2, Laws 1978, Chapter 35, Section 279,
|
0021| Laws 1983, Chapter 318, Sections 5 and 6, Laws 1989, Chapter
|
0022| 214, Section 1, Laws 1983, Chapter 318, Sections 7 and 8, Laws
|
0023| 1986, Chapter 111, Section 2, Laws 1978, Chapter 35, Sections
|
0024| 282 and 283, Laws 1971, Chapter 59, Section 2, Laws 1978,
|
0025| Chapter 35, Sections 289, 290 and 294, Laws 1955, Chapter 182,
|
0001| Section 315, Laws 1978, Chapter 35, Sections 298 through 300
|
0002| and 302, Laws 1955, Chapter 182, Sections 321 and 323, Laws
|
0003| 1978, Chapter 35, Section 306, Laws 1977, Chapter 61, Section
|
0004| 2, Laws 1978, Chapter 35, Sections 308 through 310, Laws 1955,
|
0005| Chapter 182, Section 330, Laws 1978, Chapter 35, Sections 314,
|
0006| 316, 318, 320 and 321, Laws 1983, Chapter 318, Sections 31
|
0007| through 35, Laws 1978, Chapter 35, Sections 323 and 324 and
|
0008| Laws 1983, Chapter 318, Section 38, as amended) are repealed.
|
0009| Section 33. EFFECTIVE DATE.--The effective date of the
|
0010| provisions of this act is July 1, 1997.
|
0011|
|