0001| HOUSE BILL 1184 | 0002| 43rd legislature - STATE OF NEW MEXICO - first session, 1997 | 0003| INTRODUCED BY | 0004| LARRY A. LARRAĽAGA | 0005| | 0006| | 0007| | 0008| | 0009| | 0010| AN ACT | 0011| RELATING TO MOTOR VEHICLE INSURANCE; ENACTING THE PERSONAL | 0012| CHOICE AUTO INSURANCE ACT; AMENDING, REPEALING AND ENACTING | 0013| SECTIONS OF THE NMSA 1978. | 0014| | 0015| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO: | 0016| Section 1. [NEW MATERIAL] SHORT TITLE.--Sections 1 | 0017| through 25 of this act may be cited as the "Personal Choice | 0018| Auto Insurance Act". | 0019| Section 2. [NEW MATERIAL] LEGISLATIVE FINDINGS-- | 0020| PURPOSES OF ACT.-- | 0021| A. The legislature finds that under former law, New | 0022| Mexico motorists were required to purchase liability insurance | 0023| primarily for the benefit of others. To protect themselves and | 0024| their family members from other motorists who chose not to | 0025| comply with the law, motorists had to purchase additional | 0001| insurance coverage. Motorists who did not purchase liability | 0002| insurance required by law were nonetheless permitted to make | 0003| liability claims against motorists who had purchased liability | 0004| insurance. That system for compensating injured motorists was | 0005| inefficient and over-compensated persons with non-serious | 0006| injuries. The costs of compensating injured persons were | 0007| compounded by extraordinary litigation and claim-processing | 0008| costs that were ultimately borne by insurance consumers and | 0009| taxpayers of New Mexico. | 0010| B. The purposes of the Personal Choice Auto | 0011| Insurance Act are to: | 0012| (1) give owners of motor vehicles the option | 0013| to reduce insurance costs by choosing how they will satisfy the | 0014| requirements of the Mandatory Financial Responsibility Act. | 0015| Under the Personal Choice Auto Insurance Act, motorists may | 0016| choose to: | 0017| (a) forgo their right to sue for | 0018| noneconomic and compensated economic damages arising out of a | 0019| motor vehicle accident except in certain circumstances, by | 0020| purchasing a personal compensation policy; or | 0021| (b) retain the right to recover for | 0022| damages under traditional tort principles by rejecting purchase | 0023| of a personal compensation policy, as provided in the Personal | 0024| Choice Auto Insurance Act; | 0025| (2) require insurers to make certain optional | 0001| coverages available at additional cost to motorists who choose | 0002| to purchase a personal compensation policy; | 0003| (3) encourage motorists to comply with | 0004| Mandatory Financial Responsibility Act requirements by limiting | 0005| uninsured motorists' rights to recover for loss; | 0006| (4) speed the administration of justice, ease | 0007| the burden of litigation on New Mexico courts, decrease the | 0008| expenses associated with litigation and create a system of | 0009| arbitration of claims for personal compensation benefits; and | 0010| (5) correct imbalances and abuses in the | 0011| operation of the motor vehicle accident insurance system, | 0012| encourage prompt medical treatment and rehabilitation, provide | 0013| offsets to avoid duplicate recovery and require medical | 0014| examinations. | 0015| Section 3. [NEW MATERIAL] DEFINITIONS.--As used in the | 0016| Personal Choice Auto Insurance Act: | 0017| A. "accidental bodily injury" means bodily injury, | 0018| sickness, disease or death arising out of an accident, where | 0019| the accident is unintended by the injured person; | 0020| B. "cause of action for injury" means a claim for | 0021| accidental bodily injury caused by the negligence or | 0022| intentional misconduct of another person, including a claim by | 0023| any person other than the injured person based on such injury, | 0024| including loss of consortium, companionship or any other | 0025| derivative claim; | 0001| C. "dependent" means all individuals related to | 0002| another person by blood, affinity or adoption who customarily | 0003| reside in the same household with the person and receive | 0004| financial or services support from the person; | 0005| D. "driving under the influence of intoxicating | 0006| liquor or drugs" means an individual has been convicted, as | 0007| defined in Subsection B of Section 66-5-28 NMSA 1978, of | 0008| violating Subsection A, B, C or D of Section 66-8-102 NMSA | 0009| 1978; | 0010| E. "economic loss" means pecuniary loss and | 0011| monetary expense incurred by or on behalf of an injured person | 0012| as the result of accidental bodily injury; | 0013| F. "injured person" means an individual who | 0014| sustains accidental bodily injury or the personal | 0015| representative of a deceased individual's estate; | 0016| G. "insurer" means an insurer or qualified self- | 0017| insurer providing coverage on motor vehicles pursuant to the | 0018| provisions of the Personal Choice Auto Insurance Act; | 0019| H. "intentional misconduct" means conduct whereby | 0020| bodily injury is intentionally caused by a person who acts or | 0021| fails to act for the purpose of causing bodily injury, or who | 0022| knows or reasonably should have known that bodily injury is | 0023| substantially certain to result. A person does not | 0024| intentionally cause bodily injury: | 0025| (1) merely because his act or failure to act | 0001| is intentional; or | 0002| (2) if the act or omission causing bodily | 0003| injury is for the purpose of averting bodily harm to the person | 0004| so acting or to another person; | 0005| I. "loss of income from work" means: | 0006| (1) if the injured person was employed or | 0007| self- employed at any time during the year preceding an | 0008| accident, eighty percent of the average weekly amount the | 0009| injured person would have earned or could have reasonably | 0010| expected to earn but for the accidental bodily injury, through | 0011| employment or self-employment in his usual occupation or | 0012| profession, reduced by either: | 0013| (a) eighty percent of the average weekly | 0014| amount received from substitute employment or self-employment; | 0015| or | 0016| (b) the average weekly amount of income | 0017| the injured person would have earned in available appropriate | 0018| substitute employment that the person was capable of performing | 0019| but unreasonably failed to undertake; or | 0020| (2) if the injured person was unemployed, the | 0021| amount of unemployment compensation benefits the injured person | 0022| would have been eligible to receive but for the accidental | 0023| bodily injury; provided that loss of income from work does not | 0024| include any loss of income after an injured person's death; | 0025| J. "medical expenses" means reasonable expenses | 0001| incurred by or on behalf of an injured person for necessary | 0002| medical, chiropractic, surgical, radiological, dental, | 0003| ambulance, hospital, medical rehabilitation, physical therapy | 0004| and professional nursing services, and drugs, medically | 0005| necessary equipment designed primarily for a medical purpose, | 0006| eyeglasses, hearing aids and prosthetic devices. Compensable | 0007| medical expenses do not include expenses when accidental bodily | 0008| injury is first discovered and treated more than one year after | 0009| the date of the accident, or any expenses incurred more than | 0010| three years after the date of the accident. "Medical expenses" | 0011| does not include: | 0012| (1) any portion of the charge for a room in | 0013| any hospital, clinic, convalescent or nursing home, extended | 0014| care facility or any similar facility in excess of the | 0015| reasonable and customary charge for semi-private accommodations | 0016| unless otherwise medically necessary; | 0017| (2) any portion of a charge or fee for any | 0018| treatments, services, products or procedures that are | 0019| experimental in nature, for research, not primarily designed to | 0020| serve a medical purpose or not commonly and customarily | 0021| recognized throughout the medical profession or, in the case of | 0022| chiropractic care, not commonly and customarily recognized | 0023| throughout the chiropractic profession in the United States as | 0024| appropriate for treatment of accidental bodily injury; or | 0025| (3) that portion of any charge for services, | 0001| products or facilities that exceeds the health care provider's | 0002| reasonable and customary charge for like services, products or | 0003| facilities; | 0004| K. "medical rehabilitation" means medically | 0005| necessary rehabilitation services designed to reduce the | 0006| disability and dependence of an injured person and to restore | 0007| the person, to the extent reasonably possible, to his | 0008| pre-accident level of physical functioning; | 0009| L. "motor vehicle" means a self-propelled vehicle | 0010| of a kind required to be registered under New Mexico law for | 0011| use on public streets and highways, other than a vehicle with | 0012| three or fewer load-bearing wheels; | 0013| M. "motor vehicle liability policy" means that term | 0014| as defined in Section 66-1-4.11 NMSA 1978; | 0015| N. "non-economic loss" means any loss other than | 0016| economic loss, including pain, suffering, loss of enjoyment of | 0017| life, mental anguish, emotional distress and all other | 0018| non-economic damages; | 0019| O. "occupying" means to be in, upon or engaged in | 0020| the immediate act of entering into or alighting from a motor | 0021| vehicle; | 0022| P. "operation, maintenance or use" means operation, | 0023| maintenance or use of a motor vehicle as a motor vehicle, | 0024| including occupying the vehicle. "Operation, maintenance or | 0025| use" does not include: | 0001| (1) conduct in the course of the business of | 0002| repairing, servicing, washing, selling, maintaining or | 0003| manufacturing motor vehicles unless the conduct occurs off the | 0004| business premises; or | 0005| (2) conduct in the course of loading or | 0006| unloading the motor vehicle unless the conduct occurs while | 0007| engaged in operation, maintenance or use of the vehicle; | 0008| Q. "pedestrian" means any person not occupying a | 0009| motor vehicle; | 0010| R. "personal compensation benefits" means benefits | 0011| with an aggregate limit of at least fifteen thousand dollars | 0012| ($15,000) per person per accident for economic loss resulting | 0013| from accidental bodily injury, as follows: | 0014| (1) medical expenses; | 0015| (2) loss of income from work up to two hundred | 0016| dollars ($200) per week for not more than three years from the | 0017| date of the accident that caused the accidental bodily injury; | 0018| (3) if the injured person is not receiving | 0019| benefits for loss of income from work, replacement services | 0020| loss up to one hundred dollars ($100) per week for not more | 0021| than three years from the date of the accident that caused the | 0022| accidental bodily injury; and | 0023| (4) a death benefit of fifteen thousand | 0024| dollars ($15,000) payable to the dependents or, if none, to the | 0025| estate of a decedent, if death occurs not more than one year | 0001| after the date of the accident causing the accidental bodily | 0002| injury; | 0003| S. "personal compensation chooser" means a personal | 0004| compensation insured or any other person who has not exercised | 0005| his right under Section 5 of the Personal Choice Auto Insurance | 0006| Act to reject that act's limitations on tort rights and | 0007| liabilities, other than an uninsured motorist; | 0008| T. "personal compensation insured" means: | 0009| (1) the named insured of a personal | 0010| compensation policy, and any resident relative, other than a | 0011| tort chooser; | 0012| (2) any person, other than a tort chooser, who | 0013| sustains accidental bodily injury while occupying the motor | 0014| vehicle described on the declarations page of a personal | 0015| compensation policy; or | 0016| (3) with respect to accidents within New | 0017| Mexico, any pedestrian, other than a tort chooser, who sustains | 0018| accidental bodily injury by the motor vehicle described on the | 0019| declarations page of a personal compensation policy; | 0020| U. "personal compensation policy" means an | 0021| insurance policy or qualified self-insurance plan that provides | 0022| personal compensation benefits, property damage liability and | 0023| compulsory financial responsibility coverage applicable in | 0024| jurisdictions other than New Mexico in at least the minimum | 0025| limits required by the Personal Choice Auto Insurance Act; | 0001| V. "property damage liability" means liability | 0002| insurance coverage with a limit of at least ten thousand | 0003| dollars ($10,000) per accident, exclusive of interest and | 0004| costs, for damage to property in any one accident; | 0005| W. "replacement services loss" means expenses | 0006| reasonably incurred for ordinary and necessary services from | 0007| others in lieu of those the injured person would have | 0008| performed, not for income but for the benefit of the injured | 0009| person's family, if he had not been injured. "Replacement | 0010| services loss" does not include expenses for services performed | 0011| by any person residing in the household of the injured person, | 0012| services performed by any person related to the injured person | 0013| or services performed after the injured person's death; | 0014| X. "resident relative" means an individual related | 0015| to any named insured of a personal compensation or motor | 0016| vehicle liability policy by blood, affinity or adoption and who | 0017| customarily resides in the same household with the named | 0018| insured. An individual customarily resides in the same | 0019| household if the individual primarily makes his home in the | 0020| same family unit, even though temporarily living elsewhere; | 0021| Y. "superintendent" means the superintendent of | 0022| insurance; | 0023| Z. "tort chooser" means any person who has | 0024| exercised his right under Section 5 of the Personal Choice Auto | 0025| Insurance Act to reject that act's limitations on tort rights | 0001| and liabilities; | 0002| AA. "tort coverage" means coverage under a motor | 0003| vehicle bodily injury and property damage liability policy in | 0004| which a tort chooser involved in an accident with a personal | 0005| compensation chooser recovers damages from the tort chooser's | 0006| own insurer for economic and non-economic loss that the tort | 0007| chooser is barred from recovering from the personal | 0008| compensation chooser. The coverage limit shall be at least | 0009| equal to the bodily injury liability limit under the policy; | 0010| and | 0011| BB. "uncompensated economic loss" means that | 0012| portion of economic loss arising out of accidental bodily | 0013| injury that exceeds the total of benefits provided by | 0014| applicable personal compensation policies and benefits received | 0015| from all other sources as reimbursement for or arising from | 0016| accidental bodily injury, other than life insurance benefits, | 0017| regardless of the nature or number of benefit sources available | 0018| or their form. "Uncompensated economic loss" does not include: | 0019| (1) the amount of economic loss resulting from | 0020| application of a deductible under a personal compensation | 0021| policy; | 0022| (2) the amount of economic loss that would | 0023| have been covered under a personal compensation policy | 0024| providing minimum benefits that the injured person or his | 0025| resident relative was required to maintain by the Personal | 0001| Choice Auto Insurance Act but failed to maintain in effect; or | 0002| (3) the first fifteen thousand dollars | 0003| ($15,000) of economic loss sustained by a tort chooser, | 0004| regardless of whether such loss is recovered from any other | 0005| source. | 0006| Section 4. [NEW MATERIAL] MOTOR VEHICLE INSURANCE | 0007| REQUIREMENTS.-- | 0008| A. Every motor vehicle, other than those listed as | 0009| exempt in Section 66-5-207 NMSA 1978, shall be covered by a | 0010| personal compensation policy providing personal compensation | 0011| benefits, property damage liability and compulsory financial | 0012| responsibility coverage applicable in jurisdictions other than | 0013| New Mexico in at least the minimum limits required by the | 0014| Personal Choice Auto Insurance Act, unless the owner or other | 0015| person responsible for maintaining coverage is a tort chooser. | 0016| B. A tort chooser is not eligible for a personal | 0017| compensation policy, and shall comply with the provisions of | 0018| the Mandatory Financial Responsibility Act by obtaining a motor | 0019| vehicle liability policy or providing other evidence of | 0020| financial responsibility. | 0021| C. The personal compensation policy required by | 0022| this section may be provided through insurance or a qualified | 0023| plan of self-insurance approved by the superintendent. The | 0024| superintendent may approve a self-insurance plan and issue a | 0025| certificate of self-insurance if the superintendent is | 0001| satisfied that the plan is actuarially sound and will continue | 0002| to have sufficient financial assets to respond to claims. | 0003| D. The named insured of a personal compensation | 0004| policy may waive benefits for loss of income from work for an | 0005| appropriate rate reduction by completing a certification form | 0006| prescribed by the superintendent stating under oath that | 0007| neither the named insured or any resident relative has earned | 0008| income from regular employment during the past thirty days, and | 0009| that none of them expects to earn income from regular | 0010| employment for at least one hundred and eighty days from the | 0011| date the certification is executed. A properly completed form | 0012| shall be conclusive proof of the insured's intent to waive loss | 0013| of income benefits. | 0014| E. Prior to the inception of a personal | 0015| compensation policy, the insurer shall offer the named insured | 0016| the additional, optional insurance coverages specified in | 0017| Subsection F of this section. The named insured's decision to | 0018| purchase or not to purchase any such coverages is binding on | 0019| all insureds under the policy, and applies to all renewals and | 0020| replacement policies until the named insured requests a change. | 0021| F. The additional optional insurance coverages | 0022| required to be made available under a personal compensation | 0023| policy at additional cost are: | 0024| (1) personal compensation benefits covering | 0025| loss in excess of fifteen thousand dollars ($15,000) per | 0001| person, in optional increments up to not less than an aggregate | 0002| limit of one hundred thousand dollars ($100,000) per person per | 0003| accident. Except as provided in Subsection D of this section, | 0004| if the aggregate limit is one hundred thousand dollars | 0005| ($100,000) or more, the sublimit for loss of income from work | 0006| shall be not less than five hundred dollars ($500) per week; | 0007| (2) motor vehicle bodily injury liability | 0008| insurance with a limit of not less than fifteen thousand | 0009| dollars ($15,000) per person per accident, exclusive of | 0010| interest and costs, due to accidental bodily injury and, | 0011| subject to the per-person limit, an aggregate limit per | 0012| accident of not less than thirty thousand dollars ($30,000), | 0013| exclusive of interest and costs; and | 0014| (3) scheduled benefits coverage with limits of | 0015| at least ten thousand dollars ($10,000) per person per | 0016| accident, in optional increments up to not less than one | 0017| hundred thousand dollars ($100,000) per person per accident. | 0018| Scheduled benefits coverage shall provide benefits, payable in | 0019| addition to and without regard to any other benefits payable, | 0020| for loss from accidental bodily injury sustained by the named | 0021| insured of a personal compensation policy and any resident | 0022| relative who is not a tort chooser while engaged in the | 0023| operation, maintenance or use of a motor vehicle or as a | 0024| pedestrian. Scheduled benefits coverage shall be paid as | 0025| follows, provided that only the largest applicable benefit | 0001| shall be paid for any person for any one accident: | 0002| (a) loss of life, the principal sum; | 0003| (b) permanent and total disability, the | 0004| principal sum; | 0005| (c) loss of two or more members, the | 0006| principal sum; | 0007| (d) loss of one member, one-half of the | 0008| principal sum; | 0009| (e) loss of thumb and index finger on | 0010| the same hand, one-fourth of the principal sum; | 0011| (f) permanent and total loss of hearing, | 0012| one-half of the principal sum; | 0013| (g) permanent and total loss of the | 0014| sense of smell or taste, one-fourth of the principal sum; | 0015| (h) loss of a finger or toe, one-eighth | 0016| of the principal sum; | 0017| (i) serious permanent disfigurement, | 0018| one-eighth of the principal sum; and | 0019| (j) permanent and total loss of use of | 0020| an internal organ, one-eighth of the principal sum. | 0021| G. As used in Paragraph (3) of Subsection F of | 0022| this section: | 0023| (1) "loss" means, with regard to a hand or | 0024| foot, permanent, complete loss of use of the hand or foot, or | 0025| actual severance of the hand or foot through or above the wrist | 0001| or ankle joints; with regard to an eye, complete, irrecoverable | 0002| loss of sight; with regard to a thumb, permanent, complete loss | 0003| of use of the thumb or actual severance of the thumb through | 0004| the proximal phalanx or metacarpal; with regard to the index | 0005| finger or any other finger, permanent, complete loss of use of | 0006| the particular finger or actual severance of the particular | 0007| finger through the middle or proximal phalanx or metacarpal; | 0008| and with regard to any toe, actual severance through the | 0009| proximal phalanx or metacarpal of the particular toe; | 0010| (2) "member" means hand, foot or eye; | 0011| (3) "permanent and total disability" means, | 0012| for persons who have reached the age of majority or who are | 0013| working full time at the time of the accidental bodily injury, | 0014| the insured's complete inability after one year of continuous | 0015| total disability to engage in an occupation or employment for | 0016| which the insured is fitted by reason of education, training or | 0017| experience for the remainder of the insured's life. As used in | 0018| this subparagraph, "continuous total disability" means the | 0019| insured's complete inability during the first year of | 0020| disability to perform every duty of the insured's usual | 0021| occupation. Such inability shall commence within thirty days | 0022| after the date of the accident. For persons who are both under | 0023| the age of majority and not working full time at the time of | 0024| the accidental bodily injury, "permanent and total disability" | 0025| means for two consecutive years having an abnormal | 0001| electroencephalography and abnormal brain magnetic resonance | 0002| image or having seizures for two consecutive years; and | 0003| (4) "principal sum" means the coverage limit | 0004| for scheduled benefits coverage. | 0005| H. An insurer may offer: | 0006| (1) limits higher than those required by this | 0007| section; | 0008| (2) deductible and coinsurance options for the | 0009| coverage described in Paragraph (1) of Subsection F of this | 0010| section; | 0011| (3) a limit on the coverage specified in | 0012| Paragraph (2) of Subsection F of this section on a combined | 0013| limit basis instead of a split limits basis; and | 0014| (4) coverages in addition to those required by | 0015| this section, including collision and comprehensive physical | 0016| damage. | 0017| I. Any coverages provided pursuant to this section | 0018| shall be subject to the premium rates, policy forms, terms, | 0019| limitations, conditions and exclusions approved by the | 0020| superintendent. | 0021| J. The coverages provided pursuant to this section | 0022| shall be subject to the provisions of Sections 8 and 10 of the | 0023| Personal Choice Auto Insurance Act. | 0024| K. Each insurer shall furnish named insureds with a | 0025| card constituting evidence of financial responsibility and | 0001| proof of insurance; provided that the card shall not be deemed | 0002| to create insurance coverage if the policy has, in fact, lapsed | 0003| or been canceled on the date of an accident. The card, | 0004| insurance policy, insurance policy binder, certificate of | 0005| insurance or such other proof as may be prescribed by the motor | 0006| vehicle division of the taxation and revenue department shall | 0007| constitute sufficient proof of insurance and evidence of | 0008| financial responsibility for purposes of New Mexico law. | 0009| Section 5. [NEW MATERIAL] RIGHT OF | 0010| REJECTION--UNIFORMITY OF CHOICE.-- | 0011| A. Any person, including a person who is not the | 0012| owner or other person responsible for maintaining coverage on a | 0013| motor vehicle or a resident relative, may execute a form | 0014| prescribed by the superintendent rejecting the limitations on | 0015| tort rights and liabilities of the Personal Choice Auto | 0016| Insurance Act, and shall file the form with the superintendent, | 0017| who shall maintain the forms as public records. Rejection is | 0018| effective with respect to any accident occurring after the date | 0019| and time the superintendent receives the rejection form. | 0020| Rejection for a minor or incapacitated person shall be made on | 0021| his behalf by his parent or guardian and shall remain effective | 0022| until revoked or until the person is no longer a minor or | 0023| incapacitated, whichever occurs first. Completion and filing | 0024| of the form prescribed by the superintendent shall be | 0025| conclusive proof that the person completing the form made an | 0001| informed and knowledgeable decision concerning rejection. | 0002| Rejection remains effective until revoked in writing on a form | 0003| prescribed by the superintendent. | 0004| B. Each person so rejecting shall maintain in | 0005| effect a policy of motor vehicle liability insurance with at | 0006| least the minimum coverages, including tort coverage, and | 0007| limits required by the Personal Choice Auto Insurance Act and | 0008| the Mandatory Financial Responsibility Act. | 0009| C. A person who effectively rejects in compliance | 0010| with Subsections A and B of this section retains all | 0011| traditional tort rights and tort liabilities to the extent | 0012| provided in the Personal Choice Auto Insurance Act. No such | 0013| person is entitled to collect personal compensation benefits | 0014| under any policy unless he has subsequently revoked the | 0015| rejection as provided in Subsection D of this section. | 0016| D. Revocation of rejection shall be made on a form | 0017| prescribed by the superintendent. Revocation becomes effective | 0018| as of the date and time the superintendent receives it. | 0019| Revocation remains effective until superseded by the filing of | 0020| a rejection form. Regardless of the non-filing of subsequent | 0021| revocation forms, a person eligible for payment of personal | 0022| compensation benefits as a named insured under a personal | 0023| compensation policy shall be deemed to have withdrawn any | 0024| rejection. | 0025| E. In order to minimize conflict in choices between | 0001| personal compensation choosers and tort choosers, insurers are | 0002| authorized to maintain underwriting rules that require | 0003| uniformity of choice by the named insured and all resident | 0004| relatives. | 0005| F. The superintendent shall adopt and promulgate | 0006| regulations governing: | 0007| (1) rejection and revocation of such rejection | 0008| pursuant to this section, including situations involving | 0009| multiple vehicles and multiple policies in the same household; | 0010| and | 0011| (2) a system for maintaining and providing | 0012| access to forms filed pursuant to this section. | 0013| Section 6. [NEW MATERIAL] CONSUMER INFORMATION | 0014| PROGRAM.-- | 0015| A. The superintendent shall establish and maintain | 0016| a program to inform consumers about the comparative costs of | 0017| personal compensation insurance and liability insurance, as | 0018| well as the benefits, rights and responsibilities under each | 0019| type of insurance. The program shall include procedures for | 0020| informing insureds of their right of rejection. | 0021| B. The superintendent shall prepare a budget | 0022| reflecting costs associated with carrying out his | 0023| responsibilities under the Personal Choice Auto Insurance Act. | 0024| The superintendent's budgeted costs shall be assessed annually | 0025| to all motor vehicle insurers doing business in New Mexico pro | 0001| rata on the basis of earned premium reported for the preceding | 0002| calendar year. | 0003| C. Any person, after being provided information in | 0004| a form approved by the superintendent explaining the basis for | 0005| choosing between being a personal compensation chooser and a | 0006| tort chooser, shall be bound to the terms of the status and | 0007| coverage chosen and is precluded from claiming liability | 0008| against any other person based on being inadequately informed. | 0009| Section 7. [NEW MATERIAL] APPLICATION OF PERSONAL | 0010| COMPENSATION BENEFITS AND COVERAGES TO OTHER JURISDICTIONS.-- | 0011| A. A personal compensation policy shall pay | 0012| personal compensation benefits for accidental bodily injury of | 0013| a personal compensation insured sustained within the United | 0014| States, its territories or possessions or Canada. | 0015| B. A personal compensation policy shall, if an | 0016| insured becomes subject to a compulsory financial | 0017| responsibility or similar law of another jurisdiction of the | 0018| United States, its territories or possessions or Canada, | 0019| provide the coverage required by the law of that jurisdiction. | 0020| Section 8. [NEW MATERIAL] PERSONS NOT ENTITLED TO | 0021| PERSONAL COMPENSATION BENEFITS--LIMITATIONS ON PERSONAL | 0022| COMPENSATION BENEFITS.-- | 0023| A. Notwithstanding any other provision of the | 0024| Personal Choice Auto Insurance Act, an insurer is not obligated | 0025| to provide personal compensation benefits for any injured | 0001| person who: | 0002| (1) was injured in a motor vehicle accident | 0003| while committing a felony or while voluntarily operating or | 0004| occupying a vehicle known by him to be stolen; | 0005| (2) was injured while engaged in the | 0006| operation, maintenance or use of, or as a pedestrian by, a | 0007| motor vehicle owned by, furnished to or available for the | 0008| regular use of the injured person, or a resident relative of | 0009| the injured person, if such motor vehicle is not covered by the | 0010| policy against which a claim is made; | 0011| (3) was injured as a result of his intentional | 0012| misconduct. If a person dies as a result of his intentional | 0013| misconduct, the insurer is not obligated to provide the | 0014| person's dependents and estate his personal compensation | 0015| benefits; | 0016| (4) was an uninsured motorist at the time of | 0017| the accident causing the injuries. As used in this paragraph, | 0018| "uninsured motorist" means a person who is the owner of or | 0019| other person responsible for maintaining coverage on a motor | 0020| vehicle pursuant to the Personal Choice Auto Insurance Act but | 0021| who has failed to maintain such coverage; | 0022| (5) was injured while operating or occupying a | 0023| motor vehicle involved in an organized race or speed contest; | 0024| or | 0025| (6) is a tort chooser. | 0001| B. There shall be no coverage for the named insured | 0002| or any resident relative under a personal compensation policy | 0003| while operating or occupying a self-propelled vehicle with | 0004| three or fewer load-bearing wheels. | 0005| C. An insurer shall not be obligated to pay | 0006| personal compensation benefits, other than medical payments, to | 0007| or on behalf of any injured person who was driving under the | 0008| influence of intoxicating liquor or drugs. | 0009| D. Nothing in this section bars an insurer from | 0010| providing personal compensation benefits for any injured | 0011| person, otherwise excluded by this section, if the policy | 0012| clearly states that it provides such coverage. | 0013| Section 9. [NEW MATERIAL] PAYMENT OF PERSONAL | 0014| COMPENSATION BENEFITS.--Personal compensation benefits are | 0015| payable to any of the following: | 0016| A. the injured person; | 0017| B. the parent or guardian of the injured person, if | 0018| the injured person is a minor or incapacitated; | 0019| C. a dependent or the personal representative of | 0020| the estate of the injured person; or | 0021| D. any person providing medical or other health | 0022| care services, products or facilities for which payment is due. | 0023| Section 10. [NEW MATERIAL] PRIORITY OF BENEFITS.-- | 0024| A. Personal compensation policies are liable to pay | 0025| personal compensation benefits in the following order of | 0001| priority up to their respective coverage limits: | 0002| (1) the personal compensation policy covering | 0003| a motor vehicle involved in the accident, if the injured person | 0004| was engaged in the operation, maintenance or use of the motor | 0005| vehicle or was a pedestrian injured by the motor vehicle at the | 0006| time of the accident; | 0007| (2) any personal compensation policy under | 0008| which the injured person is a named insured; | 0009| (3) any personal compensation policy under | 0010| which the injured person is a resident relative; and | 0011| (4) any personal compensation policy under | 0012| which the injured person qualifies as a personal compensation | 0013| insured other than as described in Paragraphs (1) through (3) | 0014| of this subsection. | 0015| B. Subject to the payment priorities in Subsection | 0016| A of this section, if a personal compensation insured is | 0017| entitled to benefits under more than one personal compensation | 0018| policy or coverage, the maximum recovery shall not exceed the | 0019| amount payable under the personal compensation policy with the | 0020| highest limit. | 0021| C. If two or more insurers are obligated to pay | 0022| personal compensation benefits at the same priority, the | 0023| insurer against whom the claim is first made shall pay the | 0024| claim up to that insurer's policy limits as if wholly | 0025| responsible and may thereafter recover contribution pro rata on | 0001| the basis of coverage limits from any other insurer at the same | 0002| priority level. | 0003| D. For purposes of payment of personal compensation | 0004| benefits only, an unoccupied, parked motor vehicle is not a | 0005| motor vehicle involved in an accident unless it was parked in | 0006| such a way as to cause unreasonable risk of injury. | 0007| Section 11. [NEW MATERIAL] COORDINATION OF | 0008| BENEFITS.--The personal compensation insurer has the primary | 0009| obligation to indemnify its personal compensation insured who | 0010| sustains accidental bodily injury; provided that personal | 0011| compensation benefits are excess over and shall not duplicate | 0012| the amount of benefits an injured person recovers, or is | 0013| entitled to recover, under a state or federal workers' | 0014| compensation law or similar occupational injury law, based on | 0015| the same accidental bodily injury. | 0016| Section 12. [NEW MATERIAL] LIMITATIONS ON TORT RIGHTS | 0017| AND LIABILITIES--CLAIMS FOR UNCOMPENSATED ECONOMIC LOSS.-- | 0018| A. Except as provided otherwise in Subsection C of | 0019| this section: | 0020| (1) no person, other than a tort chooser, | 0021| shall have a cause of action in tort or otherwise for | 0022| accidental bodily injury caused in whole or in part by the | 0023| operation, maintenance or use of a motor vehicle subject to the | 0024| Personal Choice Auto Insurance Act, other than for | 0025| uncompensated economic loss; and | 0001| (2) a tort chooser shall have no cause of | 0002| action in tort or otherwise against a personal compensation | 0003| chooser for accidental bodily injury caused in whole or in part | 0004| by the operation, maintenance or use of a motor vehicle subject | 0005| to the Personal Choice Auto Insurance Act, other than for | 0006| uncompensated economic loss. | 0007| B. Subject to the provisions of Subsection A of | 0008| this section and except as provided otherwise in Subsection C | 0009| of this section, an uninsured motorist shall not have a cause | 0010| of action to recover damages resulting from an accident arising | 0011| out of the operation, maintenance or use of a motor vehicle | 0012| from a personal compensation chooser or a tort chooser for: | 0013| (1) the first fifteen thousand dollars | 0014| ($15,000) of economic loss resulting from accidental bodily | 0015| injury; or | 0016| (2) the first ten thousand dollars ($10,000) | 0017| of property damage. | 0018| As used in this subsection, "uninsured motorist" means a | 0019| person who is the owner of or other person responsible for | 0020| maintaining coverage on a motor vehicle subject to the | 0021| insurance requirements of the Personal Choice Auto Insurance | 0022| Act, who fails to maintain the minimum required coverages. | 0023| C. Any person shall have a cause of action under | 0024| common law tort principles for economic and non-economic loss | 0025| against any other person who causes accidental bodily injury or | 0001| motor vehicle property damage while committing a felony or | 0002| while driving under the influence of intoxicating liquor or | 0003| drugs. It is against the public policy of this state for an | 0004| insurer to pay the damages assessed against an insured pursuant | 0005| to this subsection, except for economic loss. | 0006| D. Any person shall have a cause of action under | 0007| common law tort principles for economic and non-economic loss | 0008| resulting from accidental bodily injury or property damage | 0009| caused by intentional misconduct of another person. It is | 0010| against the public policy of this state for an insurer to pay | 0011| the damages assessed against an insured pursuant to this | 0012| subsection. | 0013| Section 13. [NEW MATERIAL] CLAIMS FOR UNCOMPENSATED | 0014| ECONOMIC LOSS--SETTLEMENT PERIOD--ATTORNEY FEES.-- | 0015| A. Any claimant seeking recovery for uncompensated | 0016| economic loss from another person, as authorized by the | 0017| Personal Choice Auto Insurance Act, shall make demand for | 0018| settlement in writing, accompanied by supporting documentation | 0019| and all relevant bills and employer records, to the person or | 0020| the person's insurer at least thirty days before filing any | 0021| lawsuit seeking damages against the person. The person against | 0022| whom claim is made or his insurer shall reply in writing to the | 0023| demand prior to the last day of the settlement period, or the | 0024| person shall be deemed to have made no offer. If any | 0025| applicable statute of limitation would otherwise run during the | 0001| thirty-day settlement period, that statute of limitation shall | 0002| be tolled until the end of the second business day after the | 0003| last day of the settlement period. The thirty-day settlement | 0004| period shall begin to run on the day the written demand is | 0005| mailed or otherwise delivered. | 0006| B. If the claimant is unable to reach an agreement | 0007| with the person against whom the claim is made or the person's | 0008| insurer by the last day of the settlement period, the claimant | 0009| shall be entitled to file a lawsuit seeking uncompensated | 0010| economic loss based on common-law tort principles. If the | 0011| claimant is deemed the prevailing party as provided in this | 0012| subsection, he shall, in addition to any damages awarded, be | 0013| awarded reasonable attorney fees, not to exceed one-third of | 0014| the gross amount of the recovery, exclusive of interest and | 0015| court costs; provided that if the gross recovery exceeds one | 0016| hundred thousand dollars ($100,000), the maximum fee shall be | 0017| limited to one-third of the amount up to one hundred thousand | 0018| dollars ($100,000) plus fifteen percent of the amount in excess | 0019| of one hundred thousand dollars ($100,000). | 0020| The claimant shall be deemed to be the prevailing party if | 0021| he recovers damages, exclusive of interest and court costs, in | 0022| an amount equal to or greater than the midpoint between the | 0023| last demand made during the settlement period by the claimant | 0024| and the last offer made during the settlement period by the | 0025| person against whom the claim is made or the person's insurer. | 0001| C. Nothing in this section shall be deemed to | 0002| prohibit the parties from compromising a claim at any time by | 0003| mutual agreement. | 0004| Section 14. [NEW MATERIAL] RIGHT OF SUBROGATION-- | 0005| CONDITIONS.--An insurer shall be subrogated, to the extent of | 0006| any personal compensation benefits paid, to all of the rights | 0007| of its insured with respect to an accident caused, in whole or | 0008| in part, by the fault of any person who is not a personal | 0009| compensation chooser. | 0010| Section 15. [NEW MATERIAL] PAYMENT OF INSURANCE | 0011| BENEFITS--CAUSES OF ACTION.-- | 0012| A. No offset shall be allowed against personal | 0013| compensation benefits due based on the value of a cause of | 0014| action until after a monetary recovery is made. After recovery | 0015| is made, a deduction from future benefits may be made in no | 0016| more than the amount of the net recovery, exclusive of attorney | 0017| fees, expenses and costs incurred in effecting the recovery. | 0018| B. If personal compensation benefits have been | 0019| received, the insurer may require the recipient to repay, out | 0020| of such recovery, an amount equal to the personal compensation | 0021| benefits received but not more than the net recovery, exclusive | 0022| of attorney fees, expenses and costs incurred in effecting the | 0023| recovery. Any remainder of the net recovery shall be credited | 0024| periodically against loss as it accrues, until an amount equal | 0025| to the net recovery has been deducted. The insurer shall have | 0001| a lien on the recovery equal to net personal compensation | 0002| benefits received. | 0003| C. Recovery on a cause of action shall not operate | 0004| to reduce personal compensation benefit coverage limits, which | 0005| shall be paid out in full to the extent economic loss exceeds | 0006| the amount of recovery. | 0007| Section 16. [NEW MATERIAL] PERSONAL COMPENSATION | 0008| BENEFITS--PROMPT PAYMENT.-- | 0009| A. Personal compensation benefits shall be paid as | 0010| loss accrues. Loss accrues when medical expense, loss of | 0011| income from work or replacement services loss occurs or when | 0012| the injured person dies. Notwithstanding any provision of the | 0013| Insurance Code, personal compensation benefits for accrued | 0014| losses are overdue if not paid within thirty days after the | 0015| insurer receives reasonable proof of the fact and the amount of | 0016| loss; provided that an insurer may accumulate claims for | 0017| periods not exceeding thirty days, in which case benefits are | 0018| not overdue if paid within twenty days after the last day of | 0019| the period of accumulation. If reasonable proof is not | 0020| supplied as to the entire claim, the amount that is supported | 0021| by reasonable proof shall be paid promptly as provided in this | 0022| subsection, and any part of the remainder of the claim that is | 0023| later supported by reasonable proof shall be paid promptly in | 0024| the same manner. | 0025| B. For the purpose of calculating the extent to | 0001| which personal compensation benefits are overdue, payment shall | 0002| be treated as made on the date a draft or other valid | 0003| instrument is placed in the United States mail in a properly | 0004| addressed postpaid envelope or, if not mailed, on the date of | 0005| personal delivery to the insured. | 0006| C. Notwithstanding any provision of the Insurance | 0007| Code, if an insurer is found after an administrative hearing by | 0008| the superintendent or upon review by a court of competent | 0009| jurisdiction to be in violation of this section, the exclusive | 0010| remedy shall be the recovery of the personal compensation | 0011| benefits and interest at the rate of twelve percent per year | 0012| beginning from the date the benefits were due, together with | 0013| attorney fees, expenses and costs. In the event of an | 0014| insurer's willful or wanton failure to comply with this | 0015| section, the recovery shall be three times the amount of the | 0016| personal compensation benefits that are overdue, together with | 0017| attorney fees, expenses and costs. | 0018| Section 17. [NEW MATERIAL] ASSIGNMENT OR GARNISHMENT-- | 0019| PERSONAL COMPENSATION BENEFITS EXEMPT.-- | 0020| A. Personal compensation benefits are exempt from | 0021| garnishment, attachment, execution or any other process or | 0022| claim to the extent that wages or earnings are exempt under any | 0023| applicable law. | 0024| B. An agreement for assignment of any right to | 0025| personal compensation benefits payable in the future shall be | 0001| unenforceable except to the extent that: | 0002| (1) such benefits are for the cost of medical | 0003| or other health care services, products or facilities provided | 0004| or to be provided by the assignee; or | 0005| (2) benefits for loss of income from work or | 0006| replacement services loss are assigned for payment of alimony, | 0007| maintenance or child support. | 0008| Section 18. [NEW MATERIAL] LIMITATIONS OF ACTIONS.-- | 0009| A. Notwithstanding Section 37-1-3 NMSA 1978 and | 0010| subject to the arbitration provisions in Section 24 of the | 0011| Personal Choice Auto Insurance Act, if no personal compensation | 0012| benefits have been paid, an action therefor may be commenced | 0013| against the insurer no later than two years after the date of | 0014| the accident causing the injuries. | 0015| B. Notwithstanding Section 37-1-3 NMSA 1978 and | 0016| subject to the arbitration provisions in Section 24 of the | 0017| Personal Choice Auto Insurance Act, if personal compensation | 0018| benefits have been paid, an action for recovery of further | 0019| personal compensation benefits may be commenced no later than | 0020| two years after the date of the last payment of personal | 0021| compensation benefits; provided, that no action for personal | 0022| compensation benefits shall be commenced against an insurer | 0023| more than four years after the date of the accident. | 0024| C. The statute of limitations period for personal | 0025| injury provided in Section 37-1-8 NMSA 1978 shall, for a cause | 0001| of action for uncompensated economic damages under the Personal | 0002| Choice Auto Insurance Act, commence on the day after the | 0003| insured has incurred economic loss in excess of fifteen | 0004| thousand dollars ($15,000) or the insured has exhausted his | 0005| policy limits, whichever is earlier. | 0006| Section 19. [NEW MATERIAL] MENTAL AND PHYSICAL | 0007| EXAMINATIONS.-- | 0008| A. If the mental or physical condition of an | 0009| injured person is material to any claim that has been or may be | 0010| made for personal compensation benefits, the injured person, | 0011| upon request of an insurer, shall submit to reasonable mental | 0012| or physical examination by a health care provider designated by | 0013| the insurer at a reasonably convenient time and location, | 0014| subject to regulations, if any, adopted and promulgated by the | 0015| superintendent. The cost of any such examination shall be | 0016| borne by the insurer and shall not be charged against or | 0017| operate to reduce benefit limits. | 0018| B. If an insurer has requested in writing that an | 0019| injured person submit to mental or physical examination | 0020| pursuant to Subsection A of this section and the person refuses | 0021| to comply, the insurer may, upon at least thirty days' prior | 0022| written notice to the insured, suspend all future personal | 0023| compensation benefits and cease payment of any incurred but | 0024| unpaid portion of bills for services which such examination is | 0025| intended to verify as medically necessary, until the injured | 0001| person complies with the request. | 0002| Section 20. [NEW MATERIAL] EMPLOYER AND PROVIDER | 0003| REQUIREMENTS--MEDICAL EXPENSE REVIEW.-- | 0004| A. Upon request of an insurer, an employer shall | 0005| furnish a statement of the work record and earnings of an | 0006| injured person who has filed a claim for personal compensation | 0007| benefits. The statement shall cover the period specified by | 0008| the insurer and may include the one-year period before, and the | 0009| entire period after, the date of the accident. | 0010| B. To assure that the treatment and expenses are | 0011| both reasonable and necessary, insurers may review or obtain a | 0012| review of treatment and expenses prior to, during and after the | 0013| course of treatment of an injured person. | 0014| C. Every medical or other health care provider | 0015| providing, before or after an injury upon which a claim for | 0016| personal compensation benefits is based, any services, products | 0017| or facilities in relation to that or any other injury, or in | 0018| relation to a condition claimed to be connected with that or | 0019| any other injury, shall, upon request of the insurer against | 0020| whom the claim has been made, furnish the insurer a written | 0021| report of the history, condition, treatment and dates and costs | 0022| of treatment of the injured person. The information shall be | 0023| provided with a declaration that the services, products or | 0024| facilities rendered were reasonable and necessary with respect | 0025| to the injury sustained and shall identify which expenses were | 0001| incurred as a result of the injury. Each medical or other | 0002| health care provider shall also produce in a timely manner and | 0003| permit the inspection and copying of its records regarding | 0004| history, condition, treatment and the dates and costs thereof. | 0005| The person providing the declaration required under this | 0006| section shall attest to it as follows: | 0007| "I declare that I have read the foregoing and the facts | 0008| alleged are true, to the best of my knowledge and belief.". | 0009| The cost of obtaining the information and records required | 0010| by this subsection shall be borne by the insurer and shall not | 0011| be charged against or operate to reduce benefit limits. | 0012| D. No cause of action for violation of the | 0013| physician-patient privilege or invasion of the right of privacy | 0014| shall exist against any medical or other health care provider | 0015| complying with the provisions of this section; provided that | 0016| the insurer is responsible for assuring the confidentiality of | 0017| the records in the hands of its officers, employees and agents. | 0018| E. A dispute regarding the right to the discovery | 0019| of facts about an injured person by the insurer may be resolved | 0020| through arbitration as provided in Section 24 of the Personal | 0021| Choice Auto Insurance Act or court proceedings. | 0022| Section 21. [NEW MATERIAL] ASSIGNED CLAIMS PLAN.-- | 0023| A. Insurers, other than self-insurance plans, | 0024| authorized to provide motor vehicle insurance under the | 0025| Personal Choice Auto Insurance Act shall organize, participate | 0001| in and maintain an assigned claims plan to provide benefits | 0002| equivalent to the minimum personal compensation benefits | 0003| required by that act to any injured person covered by that act; | 0004| provided that the person is not a tort chooser or a resident | 0005| relative of an uninsured motorist as defined in Paragraph (4) | 0006| of Subsection A of Section 8 of that act and further provided | 0007| that: | 0008| (1) personal compensation benefits are | 0009| unavailable, for a reason other than as specified in Section 8 | 0010| of that act; or | 0011| (2) personal compensation benefits are | 0012| unavailable, because of the insolvency of an insurer for whose | 0013| covered claims the New Mexico property and casualty insurance | 0014| guaranty association is not responsible. | 0015| B. The assigned claims plan shall adopt bylaws and | 0016| rules, and enter into necessary agreements for the operation of | 0017| the plan and the equitable distribution of costs, as approved | 0018| by the superintendent. | 0019| C. Any claim through the assigned claims plan shall | 0020| be assigned to an insurer in accordance with the plan's bylaws | 0021| and rules. Upon such assignment, the insurer shall have the | 0022| rights and obligations it would have had if, prior to such | 0023| assignment, it had issued a personal compensation policy | 0024| providing the minimum personal compensation coverage required | 0025| by law. | 0001| D. Any person accepting personal compensation | 0002| benefits under the assigned claims plan shall have the rights | 0003| and obligations the person would have had under a personal | 0004| compensation policy issued to him providing the minimum | 0005| personal compensation coverage required by law. | 0006| E. Notwithstanding any other provision of the | 0007| Personal Choice Auto Insurance Act, benefits available through | 0008| the assigned claims plan shall be reduced to the extent that | 0009| benefits covering the same loss are available from other | 0010| sources, regardless of the nature or number of benefit sources | 0011| available and regardless of the nature or form of the benefits. | 0012| The plan coverage shall be deemed secondary to any such other | 0013| sources. | 0014| F. The assigned claims plan and the insurer to whom | 0015| the claim is assigned are subrogated, to the extent of personal | 0016| compensation benefits paid, to all of the rights of the | 0017| claimant against any person liable for such loss and against | 0018| any insurer, its successor in interest or any other person | 0019| legally obligated to provide personal compensation benefits to | 0020| the injured person. | 0021| Section 22. [NEW MATERIAL] INCENTIVES FOR | 0022| INSUREDS.--Each insurer shall adopt an actuarially sound | 0023| program that provides incentives to a personal compensation | 0024| chooser, in the form of increased benefits, reduced premiums or | 0025| other methods: | 0001| A. to purchase motor vehicles equipped with | 0002| automatic seat and harness belts or air bags; provided that | 0003| such incentives shall not include a loss of coverage or | 0004| benefits for failure to use such devices; and | 0005| B. to have medical expense benefits delivered by a | 0006| managed care program designated by the insurer; provided that | 0007| only the actual cost of such benefits to the insurer shall be | 0008| credited against the policy limits. | 0009| Section 23. [NEW MATERIAL] REGULATIONS.--The | 0010| superintendent may adopt and promulgate regulations necessary | 0011| to provide for the effective implementation and administration | 0012| of the Personal Choice Auto Insurance Act, consistent with its | 0013| purposes. | 0014| Section 24. [NEW MATERIAL] ARBITRATION.-- | 0015| A. Notwithstanding any provision of the Uniform | 0016| Arbitration Act to the contrary, any dispute with respect to | 0017| personal compensation benefits between an insurer and an | 0018| injured person, or the dependents or estate of such person, may | 0019| be submitted to arbitration pursuant to the provisions of this | 0020| section if the insurer and the person agree. Only the dispute | 0021| that the parties have agreed to arbitrate may be addressed by | 0022| the arbitration. | 0023| B. Upon agreement for arbitration, each party shall | 0024| select a competent arbitrator, and the two arbitrators so named | 0025| shall select a third arbitrator. If unable to agree on the | 0001| third arbitrator within thirty days, either may request a judge | 0002| of the district court in the county in which the arbitration is | 0003| pending to select the third arbitrator. The written decision | 0004| of any two arbitrators shall be binding on each party, subject | 0005| to the provisions of Subsection D of this section. | 0006| C. The cost of the arbitrator and any expert | 0007| witness shall be paid by the party who selected them. The cost | 0008| of the third arbitrator and other expenses of arbitration shall | 0009| be shared equally by both parties. | 0010| D. The arbitration shall take place in the county | 0011| in which the insured resides unless the parties agree to | 0012| another location. The Rules of Civil Procedure and Rules of | 0013| Evidence for the District Courts shall apply. Any final | 0014| decision of the arbitrators shall be subject to judicial review | 0015| if filed in the district court for the county in which the | 0016| arbitration took place within thirty days of the date of the | 0017| arbitrators' decision. | 0018| Section 25. [NEW MATERIAL] OUT-OF-STATE VEHICLES.- | 0019| A. Each insurer in New Mexico shall file with | 0020| the superintendent, as a condition of its continued transaction | 0021| of business, a form approved by the superintendent declaring | 0022| that any contract of primary motor vehicle insurance, wherever | 0023| issued, covering the operation, maintenance or use of a motor | 0024| vehicle shall be deemed, while the motor vehicle is in New | 0025| Mexico, to provide at least the minimum benefits required for a | 0001| personal compensation policy by the Personal Choice Auto | 0002| Insurance Act. The insured under any such policy or under any | 0003| policy that states that it meets the requirements of the | 0004| Mandatory Financial Responsibility Act, shall be deemed to have | 0005| elected coverage under a personal compensation policy, and to | 0006| have accepted the limitations on tort rights and liabilities of | 0007| the Personal Choice Auto Insurance Act. | 0008| B. The provisions of this section do not apply to | 0009| any insured who, prior to a motor vehicle accident within New | 0010| Mexico, has become a tort chooser pursuant to Section 5 of the | 0011| Personal Choice Auto Insurance Act. With respect to such a | 0012| tort chooser, the bodily injury and property damage liability | 0013| limits of any such policy shall be operative, subject to | 0014| conformance with the Mandatory Financial Responsibility Act. | 0015| Section 26. Section 59A-7-7 NMSA 1978 (being Laws 1984, | 0016| Chapter 127, Section 113) is amended to read: | 0017| "59A-7-7. "VEHICLE" INSURANCE DEFINED.--"Vehicle" | 0018| insurance is insurance covering: | 0019| A. physical damage. Insurance against loss of or | 0020| damage to any land vehicle or aircraft or any draft or riding | 0021| animal resulting from or incident to ownership, maintenance or | 0022| use of any such vehicle, aircraft or animal; | 0023| B. public liability and property damage. Insurance | 0024| against any hazard or cause, and against any loss, liability or | 0025| expense resulting from or incident to ownership, maintenance or | 0001| use of any such vehicle, aircraft or animal; | 0002| C. cargo. Insurance against loss of or damage to | 0003| property contained in a vehicle or being loaded or unloaded | 0004| therein or therefrom or incident to the ownership, maintenance | 0005| or use of any such vehicle, aircraft or animal; ~~[and]~~ | 0006| D. medical payments. Insurance for payment on | 0007| behalf of the injured party or for reimbursement of the insured | 0008| for payment, irrespective of legal liability of the insured, of | 0009| medical, hospital, surgical and disability benefits, to persons | 0010| injured and funeral and death benefits to dependents, | 0011| beneficiaries or personal representatives of persons killed as | 0012| the result of an accident, resulting from or incident to | 0013| ownership, maintenance or use of any such vehicle, aircraft or | 0014| animal. Such coverage shall not be deemed to be "health" | 0015| insurance for purposes of the Insurance Code; and | 0016| E. personal compensation. Insurance with benefits | 0017| as described in the Personal Choice Auto Insurance Act. | 0018| Personal compensation insurance shall not be deemed health | 0019| insurance." | 0020| Section 27. Section 59A-32-3 NMSA 1978 (being Laws 1984, | 0021| Chapter 127, Section 521) is amended to read: | 0022| "59A-32-3. PURPOSE OF ASSIGNED RISK PLAN.--The purpose of | 0023| the assigned risk plan is to provide for the equitable | 0024| distribution and apportionment, among insurers authorized to | 0025| transact in this state the business of ~~[automobile and]~~ motor | 0001| vehicle bodily injury, personal compensation, property damage | 0002| liability and physical damage insurance, of insurance afforded | 0003| applicants who are in good faith entitled to, but who are | 0004| unable to procure, such insurance through ordinary methods." | 0005| Section 28. Section 59A-32-5 NMSA 1978 (being Laws 1984, | 0006| Chapter 127, Section 523) is amended to read: | 0007| "59A-32-5. REQUIREMENTS OF ASSIGNED RISK PLANS.--Any such | 0008| agreement or plan for the assignment of risks involving | 0009| ~~[automobile and]~~ motor vehicle bodily injury, personal | 0010| compensation, ~~[and]~~ property damage liability and physical | 0011| damage insurance shall include provision for: | 0012| A. reasonable rules governing the equitable | 0013| distribution of risks by direct insurance, reinsurance or | 0014| otherwise, and by the assignment of risks to insurers | 0015| participating in the plan; | 0016| B. rates and reasonable rate modifications, which | 0017| shall be applicable to such risks and which shall not be | 0018| excessive, inadequate or unfairly discriminatory; | 0019| C. the coverage limits ~~[of liability which]~~ | 0020| that any insurer to ~~[whom]~~ which a risk is assigned shall | 0021| be required to assume; and | 0022| D. a method whereby applicants for insurance, | 0023| persons insured and insurers under the plan may have a hearing | 0024| on grievances and the right to appeal from the decision on any | 0025| such grievance to the superintendent." | 0001| Section 29. Section 59A-32-6 NMSA 1978 (being Laws 1984, | 0002| Chapter 127, Section 524) is amended to read: | 0003| "59A-32-6. REVIEW OF PROPOSED ASSIGNED RISK PLANS.--Every | 0004| such plan for the assignment of risks involving ~~[automobile~~ | 0005| ~~and]~~ motor vehicle bodily injury, personal compensation, | 0006| ~~[and]~~ property damage liability and physical damage | 0007| insurance shall be filed in writing with the superintendent. | 0008| The superintendent shall review the plan as soon as reasonably | 0009| possible after filing, to determine whether or not it meets the | 0010| requirements of Section ~~[523 of this article]~~ 59A-32-5 NMSA | 0011| 1978. Each plan shall be on file with the superintendent for | 0012| a waiting period of thirty ~~[(30)]~~ days before it becomes | 0013| effective, unless sooner approved in writing. Unless | 0014| disapproved in writing by the superintendent within the thirty | 0015| ~~[(30)]~~ day waiting period, a plan shall be deemed approved | 0016| and shall become effective upon the expiration of that period." | 0017| Section 30. Section 59A-32-8 NMSA 1978 (being Laws 1984, | 0018| Chapter 127, Section 526) is amended to read: | 0019| "59A-32-8. FAILURE TO FILE PLAN--ASSIGNED RISK PLAN | 0020| PRESCRIBED.--If no plan ~~[which]~~ that meets the requirements | 0021| of Section ~~[523 of this article above]~~ 59A-32-5 NMSA 1978 | 0022| has been filed with the superintendent within ninety ~~[(90)]~~ | 0023| days after ~~[June 30, 1959]~~ the effective date of the | 0024| Personal Choice Auto Insurance Act, or within the period | 0025| stated in any order ~~[which]~~ that disapproves an existing | 0001| plan, the superintendent may formulate and prescribe a plan | 0002| ~~[which]~~ that does meet such requirements, after hearing or | 0003| consultation with insurers authorized to transact in this state | 0004| the business of ~~[automobile and]~~ motor vehicle bodily injury, | 0005| personal compensation, ~~[and]~~ property damage liability and | 0006| physical damage insurance. When any plan or ~~[plans or]~~ | 0007| amendment thereto has ~~[or have]~~ been approved or prescribed, | 0008| no insurer to which ~~[such]~~ the plan is applicable shall | 0009| thereafter issue any policy of such insurance, or undertake to | 0010| transact such business in this state, unless the insurer | 0011| participates in ~~[such]~~ the plan." | 0012| Section 31. Section 66-1-4.3 NMSA 1978 (being Laws 1990, | 0013| Chapter 120, Section 4) is amended to read: | 0014| "66-1-4.3. DEFINITIONS.--As used in the Motor Vehicle | 0015| Code: | 0016| A. "camping body" means a vehicle body primarily | 0017| designed or converted for use as temporary living quarters for | 0018| recreational, camping or travel activities; | 0019| B. "camping trailer" means a camping body that | 0020| exceeds neither eight feet in width nor forty feet in length, | 0021| mounted on a chassis, or frame with wheels, designed to be | 0022| drawn by another vehicle and that has collapsible partial side | 0023| walls that fold for towing and unfold at the campsite; | 0024| C. "cancellation" means that a driver's license is | 0025| annulled and terminated because of some error or defect or | 0001| because the licensee is no longer entitled to the license, but | 0002| cancellation of a license is without prejudice, and application | 0003| for a new license may be made at any time after cancellation; | 0004| D. "casual sale" means the sale of a motor vehicle | 0005| by the registered owner of the vehicle if the owner has not | 0006| sold more than four vehicles in that calendar year; | 0007| ~~[E. "certified motor vehicle liability policy"~~ | 0008| ~~means an owner's policy or a driver's policy of liability~~ | 0009| ~~insurance to or for the benefit of the person named therein as~~ | 0010| ~~insured, certified as provided in the Motor Vehicle Code and~~ | 0011| ~~meeting the requirements of the Motor Vehicle Code as evidence~~ | 0012| ~~of financial responsibility and issued by an insurance carrier~~ | 0013| ~~duly authorized to transact business in New Mexico;~~ | 0014| ~~F.]~~ E. "chassis" means the complete motor | 0015| vehicle, including standard factory equipment, exclusive of the | 0016| body and cab; | 0017| ~~[G.]~~ F. "collector" means a person who is the | 0018| owner of one or more vehicles of historic or special interest | 0019| who collects, purchases, acquires, trades or disposes of these | 0020| vehicles or parts thereof for the person's own use in order to | 0021| preserve, restore and maintain a similar vehicle for hobby | 0022| purposes; | 0023| ~~[H.]~~ G. "combination" means any connected | 0024| assemblage of a motor vehicle and one or more semitrailers, | 0025| trailers or semitrailers converted to trailers by means of a | 0001| converter gear; | 0002| ~~[I.]~~ H. "combination gross vehicle weight" | 0003| means the sum total of the gross vehicle weights of all units | 0004| of a combination; | 0005| ~~[J.]~~ I. "commerce" means the transportation of | 0006| persons, property or merchandise for hire, compensation, profit | 0007| or in the furtherance of a commercial enterprise in this state | 0008| or between New Mexico and a place outside New Mexico, including | 0009| a place outside the United States; | 0010| ~~[K.]~~ J. "commercial motor vehicle" means a | 0011| motor vehicle used in commerce: | 0012| (1) if the vehicle has a declared gross | 0013| vehicle weight rating of twenty-six thousand one or more | 0014| pounds; | 0015| (2) if the vehicle is designed to transport | 0016| sixteen or more passengers, including the driver; or | 0017| (3) if the vehicle is transporting hazardous | 0018| materials and is required to be placarded pursuant to | 0019| applicable law; | 0020| ~~[L.]~~ K. "controlled-access highway" means every | 0021| highway, street or roadway in respect to which owners or | 0022| occupants of abutting lands and other persons have no legal | 0023| right of access to or from the highway, street or roadway | 0024| except at those points only and in the manner as may be | 0025| determined by the public authority having jurisdiction over the | 0001| highway, street or roadway; | 0002| ~~[M.]~~ L. "controlled substance" means any | 0003| substance defined in Section 30-31-2 NMSA 1978 as a controlled | 0004| substance; | 0005| ~~[N.]~~ M. "converter gear" means any assemblage | 0006| of one or more axles with a fifth wheel mounted thereon, | 0007| designed for use in a combination to support the front end of a | 0008| semitrailer but not permanently attached thereto. A converter | 0009| gear shall not be considered a vehicle, as that term is defined | 0010| in Section 66-1-4.19 NMSA 1978, but weight attributable thereto | 0011| shall be included in declared gross weight; | 0012| ~~[O.]~~ N. "conviction" means the alleged violator | 0013| has entered a plea of guilty or nolo contendere or has been | 0014| found guilty in the trial court and has waived or exhausted all | 0015| rights to an appeal; | 0016| ~~[P.]~~ O. "crosswalk" means: | 0017| (1) that part of a roadway at an intersection | 0018| included within the connections of the lateral lines of the | 0019| sidewalks on opposite sides of the highway measured from the | 0020| curbs or, in the absence of curbs, from the edges of the | 0021| traversable roadway; and | 0022| (2) any portion of a roadway at an | 0023| intersection or elsewhere distinctly indicated for pedestrian | 0024| crossing by lines or other markings on the surface; and | 0025| ~~[Q.]~~ P. "curb cut" means a short ramp through a | 0001| curb or built up to the curb." | 0002| Section 32. Section 66-1-4.6 NMSA 1978 (being Laws 1990, | 0003| Chapter 120, Section 7) is amended to read: | 0004| "66-1-4.6. DEFINITIONS.--As used in the Motor Vehicle | 0005| Code: | 0006| A. "farm tractor" means every motor vehicle | 0007| designed and used primarily as a farm implement for drawing | 0008| plows, mowing machines and other implements of husbandry; | 0009| B. "financial responsibility" means the ability to | 0010| respond in damages for liability resulting from traffic | 0011| accidents arising out of the ownership, maintenance or use of a | 0012| motor vehicle of a type subject to registration under the laws | 0013| of New Mexico, in ~~[the]~~ amounts not less than ~~[that]~~ | 0014| those specified in the Mandatory Financial Responsibility | 0015| Act, ~~[The term]~~ or having in effect personal compensation | 0016| and property damage liability coverages meeting at least the | 0017| minimum requirements of the Personal Choice Auto Insurance | 0018| Act. "Financial responsibility" includes a motor vehicle | 0019| liability policy, ~~[a certified motor vehicle liability]~~ a | 0020| personal compensation policy, a surety bond or evidence of a | 0021| sufficient cash deposit with the state treasurer; | 0022| C. "first offender" means a person who for the | 0023| first time under state or federal law or municipal ordinance | 0024| has been adjudicated guilty of the charge of driving a motor | 0025| vehicle while under the influence of intoxicating liquor or any | 0001| other drug that renders the person incapable of safely driving | 0002| a motor vehicle, regardless of whether the person's sentence | 0003| was suspended or deferred; | 0004| D. "flammable liquid" means any liquid that has a | 0005| flash point of seventy degrees Fahrenheit or less, as | 0006| determined by a tangible or equivalent closed-cup test device; | 0007| E. "foreign jurisdiction" means any jurisdiction | 0008| other than a state of the United States or the District of | 0009| Columbia; | 0010| F. "foreign vehicle" means every vehicle of a type | 0011| required to be registered under the provisions of the Motor | 0012| Vehicle Code brought into this state from another state, | 0013| territory or country; and | 0014| G. "freight trailer" means any trailer, semitrailer | 0015| or pole trailer drawn by a truck tractor or road tractor, and | 0016| any trailer, semitrailer or pole trailer drawn by a truck that | 0017| has a gross vehicle weight of more than twenty-six thousand | 0018| pounds, but ~~[the term]~~ "freight trailer" does not include | 0019| manufactured homes, trailers of less than one-ton carrying | 0020| capacity used to transport animals or fertilizer trailers of | 0021| less than three thousand five hundred pounds empty weight." | 0022| Section 33. Section 66-1-4.11 NMSA 1978 (being Laws 1990, | 0023| Chapter 120, Section 12) is amended to read: | 0024| "66-1-4.11. DEFINITIONS.--As used in the Motor Vehicle | 0025| Code: | 0001| A. "mail" means any item properly addressed with | 0002| postage prepaid delivered by the United States postal service | 0003| or any other public or private enterprise primarily engaged in | 0004| the transport and delivery of letters, packages and other | 0005| parcels; | 0006| B. "manufactured home" means a moveable or portable | 0007| housing structure that exceeds either a width of eight feet or | 0008| a length of forty feet, constructed to be towed on its own | 0009| chassis and designed to be installed with or without a | 0010| permanent foundation for human occupancy; | 0011| C. "manufacturer" means every person engaged in the | 0012| business of constructing or assembling vehicles of a type | 0013| required to be registered under the Motor Vehicle Code; | 0014| D. "manufacturer's certificate of origin" means a | 0015| certification, on a form supplied by or approved by the | 0016| division, signed by the manufacturer that the new vehicle | 0017| described therein has been transferred to the New Mexico dealer | 0018| or distributor named therein or to a dealer duly licensed or | 0019| recognized as such in another state, territory or possession of | 0020| the United States and that such transfer is the first transfer | 0021| of the vehicle in ordinary trade and commerce; every such | 0022| certificate shall contain space for proper reassignment to a | 0023| New Mexico dealer or to a dealer duly licensed or recognized as | 0024| such in another state, territory or possession of the United | 0025| States, and the certificate shall contain a description of the | 0001| vehicle, the number of cylinders, type of body, engine number | 0002| and the serial number or other standard identification number | 0003| provided by the manufacturer of the vehicle; | 0004| E. "metal tire" means every tire of which the | 0005| surface in contact with the highway is wholly or partly of | 0006| metal or other hard nonresilient material, except that a snow | 0007| tire with metal studs designed to increase traction on ice or | 0008| snow is not considered a metal tire; | 0009| F. "moped" means a two-wheeled or three-wheeled | 0010| vehicle with an automatic transmission and a motor having a | 0011| piston displacement of less than fifty cubic centimeters that | 0012| is capable of propelling the vehicle at a maximum speed of not | 0013| more than thirty miles an hour on level ground, at sea level; | 0014| G. "motorcycle" means every motor vehicle having a | 0015| seat or saddle for the use of the rider and designed to travel | 0016| on not more than three wheels in contact with the ground, | 0017| excluding a tractor; | 0018| H. "motor home" means a camping body built on a | 0019| self-propelled motor vehicle chassis so designed that seating | 0020| for driver and passengers is within the body itself; | 0021| I. "motor vehicle" means every vehicle that is | 0022| self-propelled and every vehicle that is propelled by electric | 0023| power obtained from batteries or from overhead trolley wires, | 0024| but not operated upon rails; but for the purposes of the | 0025| Mandatory Financial Responsibility Act, "motor vehicle" does | 0001| not include "special mobile equipment"; and | 0002| J. "motor vehicle liability policy" means an | 0003| owner's policy or a driver's policy of liability insurance | 0004| providing limits of coverage not less than the dollar amounts | 0005| set forth in the Mandatory Financial Responsibility Act as | 0006| evidence of financial responsibility and, with respect to | 0007| motor vehicles registered in New Mexico, tort coverage as | 0008| specified in the Personal Choice Auto Insurance Act, with a | 0009| coverage limit at least equal to the bodily injury liability | 0010| limit, issued by an insurance carrier duly authorized to | 0011| transact business in New Mexico." | 0012| Section 34. Section 66-1-4.14 NMSA 1978 (being Laws 1990, | 0013| Chapter 120, Section 15, as amended) is amended to read: | 0014| "66-1-4.14. DEFINITIONS.--As used in the Motor Vehicle | 0015| Code: | 0016| A. "park" or "parking" means the standing of a | 0017| vehicle, whether occupied or not, other than temporarily for | 0018| the purpose of and while actually engaged in loading and | 0019| unloading; | 0020| B. "parking lot" means a parking area containing | 0021| fifteen or more parking spaces provided for the free use of | 0022| patrons of any office of state or local government or of any | 0023| public accommodation, retail or commercial establishment; | 0024| C. "parts car" means a motor vehicle generally in | 0025| nonoperable condition that is owned by a collector to furnish | 0001| parts that are usually nonobtainable from normal sources, thus | 0002| enabling a collector to preserve, restore and maintain a motor | 0003| vehicle of historic or special interest; | 0004| D. "pedestrian" means any natural person on foot; | 0005| E. "person" means every natural person, firm, | 0006| copartnership, association, corporation or other legal entity; | 0007| F. "personal compensation policy" means an owner's | 0008| or driver's personal compensation policy as specified in the | 0009| Personal Choice Auto Insurance Act; | 0010| ~~[F.]~~ G. "personal information" means | 0011| information that identifies an individual, including an | 0012| individual's photograph, social security number, driver | 0013| identification number, name, address other than zip code, | 0014| telephone number and medical or disability information, but | 0015| "personal information" does not include information on | 0016| vehicles, vehicle ownership, vehicular accidents, driving | 0017| violations or driver status; | 0018| ~~[G.]~~ H. "pneumatic tire" means every tire in | 0019| which compressed air is designed to support the load; | 0020| ~~[H.]~~ I. "pole trailer" means any vehicle | 0021| without motive power, designed to be drawn by another vehicle | 0022| and attached to the towing vehicle by means of a reach or pole | 0023| or by being boomed or otherwise secured to the towing vehicle | 0024| and ordinarily used for transporting long or irregularly shaped | 0025| loads such as poles, structures, pipes and structural members | 0001| capable, generally, of sustaining themselves as beams between | 0002| the supporting connections; | 0003| ~~[I.]~~ J. "police or peace officer" means every | 0004| officer authorized to direct or regulate traffic or to make | 0005| arrests for violations of the Motor Vehicle Code; | 0006| ~~[J.]~~ K. "private road or driveway" means every | 0007| way or place in private ownership used for vehicular travel by | 0008| the owner and those having express or implied permission from | 0009| the owner, but not other persons; and | 0010| ~~[K.]~~ L. "property owner" means the owner of a | 0011| piece of land or the agent of that property owner." | 0012| Section 35. Section 66-5-201.1 NMSA 1978 (being Laws | 0013| 1983, Chapter 318, Section 2) is amended to read: | 0014| "66-5-201.1. PURPOSE.--The legislature is aware that | 0015| motor vehicle accidents in ~~[the state of]~~ New Mexico can | 0016| result in catastrophic financial hardship. The purpose of the | 0017| Mandatory Financial Responsibility Act is to require and | 0018| encourage residents of ~~[the state of]~~ New Mexico who own and | 0019| operate motor vehicles upon the highways of the state to have | 0020| the ability either to respond in damages to accidents arising | 0021| out of the use and operation of a motor vehicle ~~[It is the~~ | 0022| ~~intent that the risks and financial burdens of motor vehicle~~ | 0023| ~~accidents be equitably distributed among all owners and~~ | 0024| ~~operators of motor vehicles within the state]~~ or to obtain a | 0025| personal compensation policy as specified in the Personal | 0001| Choice Auto Insurance Act." | 0002| Section 36. Section 66-5-205 NMSA 1978 (being Laws 1983, | 0003| Chapter 318, Section 6, as amended) is amended to read: | 0004| "66-5-205. VEHICLE MUST BE INSURED OR OWNER MUST HAVE | 0005| EVIDENCE OF FINANCIAL RESPONSIBILITY ~~[PENALTIES]~~.-- | 0006| A. No owner shall permit the operation of an | 0007| uninsured motor vehicle, or a motor vehicle for which evidence | 0008| of financial responsibility as was affirmed to the division is | 0009| not currently valid, upon the streets or highways of New Mexico | 0010| unless the vehicle is specifically exempted from the provisions | 0011| of the Mandatory Financial Responsibility Act. | 0012| B. No person shall drive an uninsured motor | 0013| vehicle, or a motor vehicle for which evidence of financial | 0014| responsibility as was affirmed to the division is not currently | 0015| valid, upon the streets or highways of New Mexico unless he is | 0016| specifically exempted from the provisions of the Mandatory | 0017| Financial Responsibility Act. | 0018| C. For the purposes of the Mandatory Financial | 0019| Responsibility Act, "uninsured motor vehicle" means a motor | 0020| vehicle for which a motor vehicle liability policy or a | 0021| ~~[certified motor vehicle liability]~~ personal compensation | 0022| policy meeting the requirements of the laws of New Mexico and | 0023| of the director is not in effect. | 0024| D. The provisions of the Mandatory Financial | 0025| Responsibility Act requiring the deposit of evidence of | 0001| financial responsibility as provided in Section 66-5-218 NMSA | 0002| 1978, subject to certain exemptions, may apply with respect to | 0003| persons who have been convicted of or forfeited bail for | 0004| certain offenses under motor vehicle laws or who have failed to | 0005| pay judgments or written settlement agreements upon causes of | 0006| action arising out of ownership, maintenance or use of vehicles | 0007| of a type subject to registration under the laws of New Mexico. | 0008| ~~[E. Any person who violates the provisions of this~~ | 0009| ~~section is guilty of a misdemeanor and upon conviction shall be~~ | 0010| ~~sentenced to a fine not to exceed three hundred dollars~~ | 0011| ~~($300).]~~" | 0012| Section 37. Section 66-5-205.1 NMSA 1978 (being Laws | 0013| 1989, Chapter 214, Section 1) is amended to read: | 0014| "66-5-205.1. ~~[UNINSURED MOTORIST CITATION--REQUIREMENTS~~ | 0015| ~~TO BE FOLLOWED AT TIME OF ACCIDENT--SUBSEQUENT PROCEDURES]~~ | 0016| NOTICE OF POLICY TERMINATION OR CANCELLATION.-- | 0017| ~~[A. When a law enforcement officer issues a driver~~ | 0018| ~~who is involved in an accident a citation for failure to comply~~ | 0019| ~~with the provisions of the Mandatory Financial Responsibility~~ | 0020| ~~Act, the law enforcement officer shall personally at the same~~ | 0021| ~~time:~~ | 0022| ~~(1) issue to the driver cited a temporary~~ | 0023| ~~operation sticker, valid for thirty days after the date the~~ | 0024| ~~sticker is issued, and forward by mail or delivery to the~~ | 0025| ~~division a duplicate of the issued sticker; and~~ | 0001| ~~(2) remove the license plate from the vehicle~~ | 0002| ~~and send it with the duplicate of the sticker to the division~~ | 0003| ~~or, if it cannot be removed, permanently deface the plate.~~ | 0004| ~~B. The division shall return or replace, in its~~ | 0005| ~~discretion, a license plate removed under the provisions of~~ | 0006| ~~Paragraph (2) of Subsection A of this section or replace a~~ | 0007| ~~license plate defaced under that paragraph when the person~~ | 0008| ~~cited for failure to comply with the provisions of the~~ | 0009| ~~Mandatory Financial Responsibility Act furnishes proof of~~ | 0010| ~~compliance to the division and pays to the division a rein-~~ | 0011| | 0012| ~~statement fee of twenty-five dollars ($25.00). If a person to~~ | 0013| ~~whom the temporary operation sticker is issued furnishes to the~~ | 0014| ~~division within fifteen days after the issuance of the sticker~~ | 0015| ~~evidence of financial responsibility in compliance with the~~ | 0016| ~~Mandatory Financial Responsibility Act and in effect on the~~ | 0017| ~~date and at the time of the issuance of the sticker, the~~ | 0018| ~~division shall replace or return the license plate and waive~~ | 0019| ~~the twenty-five dollar ($25.00) reinstatement fee.~~ | 0020| ~~C. The director shall adopt and promulgate~~ | 0021| ~~regulations prescribing the form and use of the sticker~~ | 0022| ~~required to be issued under Subsection A of this section.~~ | 0023| ~~D.]~~ The director may adopt and promulgate | 0024| regulations requiring insurance carriers who terminate or | 0025| cancel any motor vehicle liability policy or ~~[certified motor~~ | 0001| ~~vehicle liability]~~ personal compensation policy to report | 0002| monthly each cancellation or termination to the division. | 0003| Information pertaining to each motor vehicle shall be made a | 0004| part of that vehicle file for one year. Notification of | 0005| termination or cancellation made under such a regulation is not | 0006| grounds for revocation of the motor vehicle registration." | 0007| Section 38. Section 66-5-206 NMSA 1978 (being Laws 1983, | 0008| Chapter 318, Section 7) is amended to read: | 0009| "66-5-206. REGISTRATION WITHOUT INSURANCE OR EVIDENCE OF | 0010| FINANCIAL RESPONSIBILITY PROHIBITED--SUSPENSION REQUIRED.-- | 0011| A. The division shall not issue or renew the | 0012| registration for any motor vehicle not covered by a motor | 0013| vehicle liability policy, ~~[or]~~ a ~~[certified motor vehicle~~ | 0014| ~~liability]~~ personal compensation policy or ~~[by]~~ evidence | 0015| of financial responsibility currently valid meeting the | 0016| requirements of the laws of New Mexico and of the director, | 0017| unless specifically exempted from the Mandatory Financial | 0018| Responsibility Act. | 0019| B. Upon a showing by its records or other | 0020| sufficient evidence that the required insurance or evidence of | 0021| financial responsibility has not been provided or maintained | 0022| for a motor vehicle, the division shall suspend its | 0023| registration of the motor vehicle." | 0024| Section 39. Section 66-5-207 NMSA 1978 (being Laws 1983, | 0025| Chapter 318, Section 8, as amended) is amended to read: | 0001| "66-5-207. EXEMPT MOTOR VEHICLES.--The following motor | 0002| vehicles are exempt from the Mandatory Financial Responsibility | 0003| Act: | 0004| A. a motor vehicle owned by the United States | 0005| government, any state or any political subdivision of a state; | 0006| B. an implement of husbandry or special mobile | 0007| equipment ~~[which]~~ that is only incidentally operated on a | 0008| highway; | 0009| C. a motor vehicle operated upon a highway only for | 0010| the purpose of crossing such highway from one property to | 0011| another; | 0012| D. a commercial motor vehicle registered or | 0013| proportionally registered in this and any other jurisdiction, | 0014| provided such motor vehicle is covered by a motor vehicle | 0015| liability policy, ~~[or certified motor vehicle liability]~~ | 0016| personal compensation policy or equivalent coverage or | 0017| other form of financial responsibility in compliance with the | 0018| laws of any other jurisdiction in which it is registered; | 0019| E. a motor vehicle approved as self-insured by the | 0020| superintendent of insurance pursuant to Section 66-5-207.1 NMSA | 0021| 1978; and | 0022| F. any motor vehicle when the owner has submitted | 0023| to the division a signed statement, in such form as may be | 0024| prescribed by the division, declaring that the vehicle will not | 0025| be operated on the highways of New Mexico and explaining the | 0001| reasons therefor." | 0002| Section 40. Section 66-5-208 NMSA 1978 (being Laws 1978, | 0003| Chapter 35, Section 282, as amended) is amended to read: | 0004| "66-5-208. EVIDENCE OF FINANCIAL RESPONSIBILITY--AMOUNTS | 0005| AND CONDITIONS.--"Evidence of financial responsibility", as | 0006| used in the Mandatory Financial Responsibility Act, means: | 0007| A. evidence of the ability to respond in damages | 0008| for liability, on account of accidents occurring subsequent to | 0009| the effective date of the evidence, arising out of the | 0010| ownership, maintenance or use of a vehicle of a type subject to | 0011| registration under the laws of New Mexico, in the following | 0012| amounts: | 0013| ~~[A. twenty-five thousand dollars ($25,000)]~~ | 0014| (1) fifteen thousand dollars ($15,000) | 0015| because of bodily injury to or death of one person in any one | 0016| accident; | 0017| ~~[B.]~~ (2) subject to ~~[this]~~ the limit | 0018| for one person, ~~[fifty thousand dollars ($50,000)]~~ thirty | 0019| thousand dollars ($30,000) because of bodily injury to or | 0020| death of two or more persons in any one accident; | 0021| ~~[C.]~~ (3) ten thousand dollars ($10,000) | 0022| because of injury to or destruction of property of others in | 0023| any one accident; and | 0024| ~~[D.]~~ (4) if evidence is in the form of a | 0025| surety bond or a cash deposit, the total amount shall be | 0001| ~~[sixty thousand dollars ($60,000)]~~ forty thousand dollars | 0002| ($40,000); or | 0003| B. evidence of a valid personal compensation | 0004| policy as specified in the Personal Choice Auto Insurance | 0005| Act." | 0006| Section 41. Section 66-5-209 NMSA 1978 (being Laws 1978, | 0007| Chapter 35, Section 283, as amended) is amended to read: | 0008| "66-5-209. MEANING OF "JUDGMENT".--"Judgment", as used in | 0009| the Mandatory Financial Responsibility Act, means any judgment | 0010| ~~[which]~~ that becomes final by expiration without appeal of | 0011| the time within which an appeal might have been perfected or by | 0012| final affirmation on appeal rendered by a court of competent | 0013| jurisdiction of any state or of the United States, upon a cause | 0014| of action arising out of the ownership, maintenance or use of | 0015| any motor vehicle of a type subject to registration under the | 0016| laws of New Mexico, for damages, including damages for care and | 0017| loss of services, because of bodily injury to or death of any | 0018| person or for damages because of injury to or destruction of | 0019| property, including the loss of use thereof, or upon a cause of | 0020| action on an agreement of settlement for such damages. | 0021| "Judgment" does not include any amount recoverable as | 0022| uncompensated economic loss under the Personal Choice Auto | 0023| Insurance Act." | 0024| Section 42. Section 66-5-215 NMSA 1978 (being Laws 1978, | 0025| Chapter 35, Section 298, as amended) is amended to read: | 0001| "66-5-215. PAYMENTS SUFFICIENT TO SATISFY REQUIREMENTS.-- | 0002| A. Judgments herein referred to shall, for the | 0003| purpose of the Mandatory Financial Responsibility Act only, be | 0004| deemed satisfied when: | 0005| (1) ~~[twenty-five thousand dollars ($25,000)]~~ | 0006| fifteen thousand dollars ($15,000) has been credited upon any | 0007| judgment ~~[or judgments]~~ rendered in excess of that amount | 0008| because of bodily injury to or death of one person as the | 0009| result of any one accident; | 0010| (2) subject to the limit ~~[of twenty-five~~ | 0011| ~~thousand dollars ($25,000) because of bodily injury to or death~~ | 0012| ~~of]~~ for one person, the sum of ~~[fifty thousand dollars~~ | 0013| ~~($50,000)]~~ thirty thousand dollars ($30,000) has been | 0014| credited upon any judgment ~~[or judgments]~~ rendered in excess | 0015| of that amount because of bodily injury to or death of two or | 0016| more persons as the result of any one accident; or | 0017| (3) ten thousand dollars ($10,000) has been | 0018| credited upon any judgment ~~[or judgments]~~ rendered in excess | 0019| of that amount because of injury to or destruction of property | 0020| of others as a result of any one accident. | 0021| B. However, payments made in settlements of any | 0022| claims because of bodily injury, death or property damage | 0023| arising from the accident shall be credited in reduction of the | 0024| amounts provided for in this section." | 0025| Section 43. Section 66-5-218 NMSA 1978 (being Laws 1978, | 0001| Chapter 35, Section 302, as amended) is amended to read: | 0002| "66-5-218. ALTERNATE METHODS OF GIVING EVIDENCE.-- | 0003| Evidence of financial responsibility, when required under the | 0004| Mandatory Financial Responsibility Act, may be given by filing: | 0005| A. evidence of a motor vehicle liability policy; | 0006| B. evidence of a ~~[certified motor vehicle~~ | 0007| ~~liability]~~ personal compensation policy ~~[as provided in~~ | 0008| ~~Section 66-5-219 NMSA 1978]~~; | 0009| C. a surety bond as provided in Section 66-5-225 | 0010| NMSA 1978; or | 0011| D. a certificate of deposit of money as provided in | 0012| Section 66-5-226 NMSA 1978." | 0013| Section 44. Section 66-5-220 NMSA 1978 (being Laws 1955, | 0014| Chapter 182, Section 323, as amended) is amended to read: | 0015| "66-5-220. DEFAULT BY NONRESIDENT INSURER.--If any | 0016| insurance carrier not authorized to transact business in New | 0017| Mexico ~~[which]~~ that has qualified to furnish evidence of | 0018| financial responsibility defaults in any undertakings or | 0019| agreements, the division shall not thereafter accept ~~[as]~~ | 0020| evidence ~~[any certificate]~~ of financial responsibility of | 0021| that carrier, whether previously filed or thereafter tendered | 0022| as evidence, so long as the default continues." | 0023| Section 45. Section 66-5-222 NMSA 1978 (being Laws 1977, | 0024| Chapter 61, Section 2) is amended to read: | 0025| "66-5-222. ~~[DRIVERS]~~ DRIVER EXCLUSION ENDORSEMENT | 0001| FORM. Any motor vehicle liability policy or personal | 0002| compensation policy may be endorsed to exclude any named driver | 0003| from coverage. The endorsement shall be signed by at least one | 0004| named insured. Endorsements shall be substantially similar to | 0005| the following form: | 0006| "~~[DRIVERS]~~ DRIVER EXCLUSION ENDORSEMENT | 0007| Nothing herein contained shall be | 0008| held to alter, vary, waive or extend any | 0009| of the terms, conditions, agreements or | 0010| limits of the undermentioned policy other | 0011| than as stated herein below. | 0012| Effective--12:01 a.m., standard | 0013| time. Attached to and forming part of | 0014| Policy No._______________issued to | 0015| ____________________ | 0016| by____________________ | 0017| ______________________. | 0018| (name of insured) (insert name of | 0019| insurance company) | 0020| In consideration of the premium for | 0021| which the policy is written, it is agreed | 0022| that the company shall not be liable and | 0023| no liability or obligation of any kind | 0024| shall be attached to the company for | 0025| losses or damages sustained after the ef- | 0001| | 0002| fective date of this endorsement while | 0003| any motor vehicle insured hereinunder is | 0004| driven or operated by | 0005| ___________________________________. | 0006| (name of excluded driver(s)) | 0007| Date:____________________ Name insured(s) | 0008| ___________________________ | 0009| (signature) | 0010| ____________________________ | 0011| (signature)"." | 0012| Section 46. Section 66-5-224 NMSA 1978 (being Laws 1978, | 0013| Chapter 35, Section 309, as amended) is amended to read: | 0014| "66-5-224. ACT NOT TO AFFECT OTHER POLICIES.-- | 0015| A. The Mandatory Financial Responsibility Act does | 0016| not apply to or affect policies of motor vehicle insurance | 0017| ~~[against liability which]~~ that may now or hereafter be re- | 0018| | 0019| quired by any other law of New Mexico, except the Personal | 0020| Choice Auto Insurance Act, and such policies, if they contain | 0021| an agreement or are endorsed to conform with the requirements | 0022| of the Mandatory Financial Responsibility Act, may be consider- | 0023| | 0024| ed as evidence of financial responsibility under that act. | 0025| B. The Mandatory Financial Responsibility Act does | 0001| not apply to or affect policies insuring solely the insured | 0002| named in the policy against liability resulting from the | 0003| maintenance or use by persons in the insured's employ or on his | 0004| behalf of motor vehicles not owned by the insured." | 0005| Section 47. Section 66-5-226 NMSA 1978 (being Laws 1955, | 0006| Chapter 182, Section 330, as amended) is amended to read: | 0007| "66-5-226. CASH DEPOSIT AS EVIDENCE.--Evidence of | 0008| financial responsibility may be demonstrated by the certificate | 0009| of the state treasurer that the person named in the certificate | 0010| has deposited with him ~~[sixty thousand dollars ($60,000)]~~ | 0011| forty thousand dollars ($40,000) in cash." | 0012| Section 48. Section 66-5-228 NMSA 1978 (being Laws 1978, | 0013| Chapter 35, Section 316, as amended) is amended to read: | 0014| "66-5-228. SUBSTITUTION OF EVIDENCE.--The division shall | 0015| consent to the cancellation of any bond ~~[or certified motor~~ | 0016| ~~vehicle liability policy]~~ or the division shall direct and the | 0017| state treasurer shall return any money to the person entitled | 0018| thereto upon the substitution and acceptance of any other | 0019| adequate evidence of financial responsibility as set forth in | 0020| ~~[Subsection B, C or D of]~~ Section 66-5-218 NMSA 1978." | 0021| Section 49. Section 66-5-229 NMSA 1978 (being Laws 1978, | 0022| Chapter 35, Section 318, as amended) is amended to read: | 0023| "66-5-229. DURATION OF EVIDENCE--WHEN PROOF MAY BE | 0024| CANCELED OR RETURNED.-- | 0025| A. The division shall, upon request, ~~[consent to~~ | 0001| ~~the immediate cancellation of any bond or certified motor~~ | 0002| ~~vehicle liability policy or the division shall direct and the~~ | 0003| ~~state treasurer shall return to the person entitled thereto any~~ | 0004| ~~money deposited pursuant to the Mandatory Financial~~ | 0005| ~~Responsibility Act as evidence of financial responsibility or~~ | 0006| ~~the division shall]~~ waive the requirement of filing evidence | 0007| of financial responsibility in any of the following events: | 0008| (1) after ~~[one year]~~ two years of | 0009| providing satisfactory evidence as ~~[required]~~ specified in | 0010| ~~[Subsection B, C or D of]~~ Section 66-5-218 NMSA 1978 ~~[and~~ | 0011| ~~upon the deposit with the division of evidence of financial~~ | 0012| ~~responsibility as set forth in Subsection A of that section]~~; | 0013| (2) ~~[in the event of]~~ the death of the person | 0014| on whose behalf evidence was filed or the permanent incapacity | 0015| of the person to operate a motor vehicle; or | 0016| (3) ~~[in the event]~~ the person who has | 0017| ~~[given]~~ filed evidence surrenders his license and | 0018| registration to the division. | 0019| B. Provided, however, that the division shall not | 0020| ~~[consent to the cancellation of any bond or the return of any~~ | 0021| ~~money]~~ waive the requirement of filing evidence of financial | 0022| responsibility in the event any action for damages upon a | 0023| liability covered by the evidence is then pending or any | 0024| judgment upon any such liability is then unsatisfied or in the | 0025| event the person who has filed the ~~[bond or deposited the~~ | 0001| ~~money]~~ evidence has, within one year immediately preceding | 0002| the request, been involved as a driver or owner in any motor | 0003| vehicle accident resulting in injury or damage to the person or | 0004| property of others. An affidavit of the applicant as to the | 0005| nonexistence of such facts or that he has been released from | 0006| all of his liability or has been finally adjudicated not to be | 0007| liable for such injury or damage shall be sufficient evidence | 0008| thereof in the absence of evidence to the contrary in the | 0009| records of the division. | 0010| C. Every owner or operator of a vehicle subject to | 0011| the requirements of the Mandatory Financial Responsibility Act | 0012| shall carry evidence of financial responsibility as defined by | 0013| that act in the vehicle at all times while the vehicle is in | 0014| operation on the highways of this state. ~~[The failure to~~ | 0015| ~~comply with this subsection shall be a misdemeanor and shall be~~ | 0016| ~~punishable by the penalty set forth in Section 66-8-7 NMSA~~ | 0017| ~~1978; provided that no person charged with violating this~~ | 0018| ~~section shall be convicted if he produces in court evidence of~~ | 0019| ~~financial responsibility valid at the time of issuance of the~~ | 0020| ~~citation.]~~" | 0021| Section 50. Section 66-5-232 NMSA 1978 (being Laws 1983, | 0022| Chapter 318, Section 31) is amended to read: | 0023| "66-5-232. SAMPLING--LETTER TO OWNER.-- | 0024| A. The division, at various times as it considers | 0025| necessary or appropriate to assure compliance with the | 0001| Mandatory Financial Responsibility Act, shall select for | 0002| financial responsibility affirmation an appropriate sample | 0003| number of the motor vehicles registered in New Mexico. The | 0004| division is authorized to emphasize, in accordance with rules | 0005| adopted by the division, for affirmation of financial responsi- | 0006| | 0007| bility, individuals whose affirmations of financial | 0008| responsibility have previously been found to be incorrect. | 0009| B. When a motor vehicle is selected for financial | 0010| responsibility affirmation under Subsection A of this section, | 0011| the division shall mail an affirmation form to the registered | 0012| owner of the motor vehicle notifying him that his motor vehicle | 0013| has been selected for financial responsibility affirmation and | 0014| requiring him to respond and to affirm, by at least one | 0015| signature shown on the affirmation form, the existence of | 0016| evidence satisfying the financial responsibility requirements | 0017| of the Mandatory Financial Responsibility Act for the motor | 0018| vehicle. | 0019| C. Failure by an owner to return the affirmation of | 0020| financial responsibility to the division within fifteen days | 0021| after mailing by the division or a determination by the | 0022| division that an affirmation is not accurate constitutes | 0023| reasonable grounds under Section 66-5-235 NMSA 1978 to believe | 0024| that a person is operating a motor vehicle in violation of | 0025| Section 66-5-205 NMSA 1978 or has falsely affirmed the exis- | 0001| | 0002| tence of means of satisfying the financial responsibility | 0003| requirements of the Mandatory Financial Responsibility Act. | 0004| D. The division may investigate all affirmations | 0005| required by the Mandatory Financial Responsibility Act returned | 0006| to the division. If the owner affirms the existence of a motor | 0007| vehicle liability policy or ~~[certified motor vehicle~~ | 0008| ~~liability]~~ personal compensation policy covering the motor | 0009| vehicle, the division may forward the affirmation to the listed | 0010| insurer to determine whether the affirmation is correct. An | 0011| insurer shall mail notification to the division within twenty | 0012| working days of receipt of the affirmation inquiry in the event | 0013| the affirmation is not correct. The notification shall be | 0014| prima facie evidence of failure to satisfy the financial | 0015| responsibility requirements of the Mandatory Financial Re- | 0016| | 0017| sponsibility Act. The division may determine the correctness | 0018| of affirmation of other means of satisfying the financial | 0019| responsibility requirements of that act for the motor vehicle. | 0020| E. The division may use accident reports as basic | 0021| material for the construction of its sampling procedure. | 0022| F. No civil liability shall accrue to the insurer | 0023| or any of its employees for reports made to the division under | 0024| this section when the reports are made in good faith based on | 0025| the most recent information available to the insurer. | 0001| G. The affirmation form used when sampling shall | 0002| require the report of the name of the company issuing the | 0003| policy, the policy number or any other information that | 0004| identifies the policy." | 0005| Section 51. Section 66-5-233 NMSA 1978 (being Laws 1983, | 0006| Chapter 318, Section 32) is amended to read: | 0007| "66-5-233. AFFIRMATION FORM.--The affirmation of | 0008| financial responsibility required under Sections 66-5-208, 66- | 0009| 5-225 and 66-5-226 NMSA 1978 shall be in a form prescribed by | 0010| the division and shall require an applicant to provide such | 0011| information as may be required by the division. If a person | 0012| affirms the existence of a motor vehicle liability policy or | 0013| ~~[certified motor vehicle liability]~~ personal compensation | 0014| policy, the affirmation form shall require him to report at | 0015| least the name of the insurer issuing the policy and the policy | 0016| number." | 0017| Section 52. Section 66-5-234 NMSA 1978 (being Laws 1983, | 0018| Chapter 318, Section 33) is amended to read: | 0019| "66-5-234. REGISTRATION--APPLICATION AND RENEWAL.-- | 0020| A. The division shall indicate in boldface print on | 0021| every new application form for registration and every | 0022| registration form that the owner of the motor vehicle affirms | 0023| that he is financially responsible within the meaning of the | 0024| Mandatory Financial Responsibility Act. The payment of the | 0025| registration fee and acceptance by the division of the | 0001| application for registration shall be affirmation by the owner | 0002| of the registered vehicle that he has complied with the | 0003| requirements of that act. | 0004| B. The division shall not renew the registration of | 0005| a motor vehicle unless the owner of the motor vehicle affirms | 0006| the existence of a motor vehicle liability policy or | 0007| ~~[certified motor vehicle liability]~~ personal compensation | 0008| policy covering the motor vehicle or the existence of some | 0009| other means of satisfying the financial responsibility | 0010| requirements of the Mandatory Financial Responsibility Act for | 0011| the motor vehicle." | 0012| Section 53. Section 66-5-235 NMSA 1978 (being Laws 1983, | 0013| Chapter 318, Section 34, as amended) is amended to read: | 0014| "66-5-235. FALSE AFFIRMATION--VIOLATION.--When the | 0015| division has reasonable grounds to believe that a person is | 0016| operating a motor vehicle in violation of Section 66-5-205 NMSA | 0017| 1978 or has falsely affirmed the existence of a motor vehicle | 0018| liability policy, a ~~[certified motor vehicle liability]~~ | 0019| personal compensation policy or the existence of some other | 0020| means of satisfying the financial responsibility requirements | 0021| of the Mandatory Financial Responsibility Act, the division | 0022| shall demand satisfactory evidence from the person that the | 0023| person meets the requirements of that act as provided in | 0024| Section 66-5-233 NMSA 1978. If the person cannot provide | 0025| evidence of financial responsibility within twenty days after | 0001| receipt of the division's demand for satisfactory proof of | 0002| financial responsibility, the division ~~[may notify the~~ | 0003| ~~district attorney of the county in which the person resides of~~ | 0004| ~~the division's belief that violations of the Mandatory~~ | 0005| ~~Financial Responsibility Act were or are being committed by~~ | 0006| ~~that person]~~ shall suspend the person's registration as | 0007| provided in Section 66-5-236 NMSA 1978." | 0008| Section 54. Section 66-5-236 NMSA 1978 (being Laws 1983, | 0009| Chapter 318, Section 35) is amended to read: | 0010| "66-5-236. SUSPENSION FOR NONPAYMENT OF JUDGMENT OR FOR | 0011| FALSE AFFIRMATION.-- | 0012| A. Except as otherwise provided, the director shall | 0013| suspend: | 0014| (1) the motor vehicle registration for all | 0015| motor vehicles and the driver's license of any person against | 0016| whom a judgment has been rendered, the division being in | 0017| receipt of a certified copy of the judgment on a form provided | 0018| by the division; or | 0019| (2) the registration for a period not to | 0020| exceed one year of a person who is operating a motor vehicle in | 0021| violation of Section 66-5-205 NMSA 1978 or falsely affirms the | 0022| existence of a motor vehicle liability policy, a certified | 0023| motor vehicle liability policy or some other means of | 0024| satisfying the financial responsibility requirements of the | 0025| Mandatory Financial Responsibility Act, but only if evidence of | 0001| financial responsibility is not submitted within ~~[thirty]~~ | 0002| twenty days after the date of the mailing of the division's | 0003| demand therefor ~~[under Section 66-5-232 NMSA 1978]~~. The | 0004| division shall notify the person that he may request a hearing | 0005| within twenty days after the date of the mailing of the | 0006| division's demand as provided under this subsection. | 0007| B. ~~[That]~~ The registration shall remain ~~[so]~~ | 0008| suspended and shall not be renewed, nor shall any registration | 0009| be issued thereafter in the name of that person, unless and | 0010| until every judgment is stayed, satisfied in full or to the | 0011| extent provided in the Mandatory Financial Responsibility Act | 0012| and evidence of financial responsibility as required in Section | 0013| 66-5-218 NMSA 1978 is provided to the division." | 0014| Section 55. Section 66-5-301 NMSA 1978 (being Laws 1978, | 0015| Chapter 35, Section 325, as amended) is amended to read: | 0016| "66-5-301. INSURANCE AGAINST UNINSURED AND UNKNOWN | 0017| MOTORISTS--REJECTION OF COVERAGE BY THE INSURED.-- | 0018| A. No motor vehicle ~~[or automobile]~~ liability | 0019| policy ~~[insuring against loss resulting from liability imposed~~ | 0020| ~~by law for bodily injury or death suffered by any person and~~ | 0021| ~~for injury to or destruction of property of others arising out~~ | 0022| ~~of the ownership, maintenance or use of a motor vehicle]~~ shall | 0023| be delivered or issued for delivery in New Mexico with respect | 0024| to any motor vehicle registered or principally garaged in New | 0025| Mexico unless coverage is provided therein or supplemental | 0001| thereto in minimum limits for bodily injury or death and for | 0002| injury to or destruction of property as set forth in Section | 0003| 66-5-215 NMSA 1978 and such higher limits as may be desired by | 0004| the insured, but up to the limits of liability specified in | 0005| bodily injury and property damage liability provisions of the | 0006| insured's policy, for the protection of persons insured | 0007| thereunder who are legally entitled to recover damages from | 0008| owners or operators of uninsured motor vehicles because of | 0009| bodily injury, sickness or disease, including death, and for | 0010| injury to or destruction of property resulting therefrom, | 0011| according to the rules and regulations promulgated by, and | 0012| under provisions filed with and approved by, the superintendent | 0013| of insurance. | 0014| B. The uninsured motorist coverage described in | 0015| Subsection A of this section shall include underinsured | 0016| motorist coverage for persons protected by an insured's policy. | 0017| For the purposes of this subsection, "underinsured motorist" | 0018| means an operator of a motor vehicle with respect to the | 0019| ownership, maintenance or use of which the sum of the limits of | 0020| liability under all bodily injury liability insurance | 0021| applicable at the time of the accident is less than the limits | 0022| of liability under the insured's uninsured motorist coverage. | 0023| ~~[No motor vehicle or automobile liability policy sold in New~~ | 0024| ~~Mexico shall be required to include underinsured motorist~~ | 0025| ~~coverage until January 1, 1980.]~~ A personal compensation | 0001| insured under the Personal Choice Auto Insurance Act shall not | 0002| be deemed an underinsured | 0003| motorist except to the extent a claim is made for uncompensated | 0004| economic loss against the motorist, as provided in that act, | 0005| that exceeds the coverage limit under the personal compensation | 0006| policy. | 0007| C. Unless a named insured makes an express election | 0008| to stack uninsured motorist coverage limits for two or more | 0009| motor vehicles by adding such limits together, the limits shall | 0010| not be stacked. An insurer shall notify its policyholders in | 0011| writing that they may elect to stack uninsured motorist | 0012| coverage limits. | 0013| ~~[C.]~~ D. The uninsured motorist coverage shall | 0014| ~~[provide an exclusion]~~ exclude coverage of not more than | 0015| the first ~~[two hundred fifty dollars ($250)]~~ five hundred | 0016| dollars ($500) of loss resulting from injury to or destruction | 0017| of property of the insured in any one accident and may exclude | 0018| coverage of punitive or exemplary damages. The named insured | 0019| shall have the right to reject the uninsured motorist | 0020| coverage ~~[as]~~ described in ~~[Subsections A and B of]~~ this | 0021| section; provided that unless the named insured requests such | 0022| coverage in writing, such coverage need not be provided in or | 0023| supplemental to a renewal policy where the named insured has | 0024| rejected the coverage in connection with a policy previously | 0025| issued to him by the same insurer. | 0001| E. Uninsured motorist coverage for injury to or | 0002| destruction of property extends only to the vehicle described | 0003| in the policy and to property not otherwise insured carried in | 0004| or upon the vehicle." | 0005| Section 56. TEMPORARY PROVISION--TRANSITION OF RENEWAL | 0006| POLICIES.--Each automobile insurance policy in effect on the | 0007| effective date of the Personal Choice Auto Insurance Act shall | 0008| become subject to the provisions of that act on its first | 0009| succeeding renewal date. At least thirty days before the | 0010| policy renewal date, the motor vehicle insurer shall notify the | 0011| policyholder of the new limitation on tort rights and | 0012| liabilities, and shall provide information on obtaining the | 0013| appropriate form to reject the limitation. At that time, the | 0014| motor vehicle insurer shall also afford the policyholder the | 0015| opportunity to purchase the optional coverages specified in | 0016| Section 4 of the Personal Choice Auto Insurance Act. If the | 0017| policyholder does not request any optional coverage prior to | 0018| the renewal date of the policy and does not inform the insurer | 0019| that he is a tort chooser, the policy shall be reissued as a | 0020| personal compensation policy with personal compensation | 0021| benefits equal to the medical payment coverage previously | 0022| selected by the insured, but in no event less than fifteen | 0023| thousand dollars ($15,000). If the insurer does not offer | 0024| personal compensation benefits in an amount equal to the | 0025| insured's previous medical payments limit, then the insurer | 0001| shall provide the available limit that is nearest the previous | 0002| medical payments limit. All other coverages previously | 0003| purchased by a named insured shall remain in effect; provided | 0004| that motor vehicle insurers may delete any coverage that would | 0005| substantially duplicate personal compensation benefits, | 0006| including uninsured motorist coverage and disability coverage. | 0007| If the policyholder requests any optional coverage, the | 0008| requested coverage shall be effective on the reissue date of | 0009| the policy if the request is received prior to the renewal date | 0010| of the policy. If received on or after the reissue date, the | 0011| requested coverage shall be effective at 12:01 a.m. on the day | 0012| after the request is received. | 0013| Section 57. TEMPORARY PROVISION--COST SAVINGS TO | 0014| CONSUMERS--CONDITIONAL REPEAL.-- | 0015| A. Each motor vehicle insurer that writes motor | 0016| vehicle insurance policies shall file policy forms and rates | 0017| for personal compensation policies and motor vehicle liability | 0018| policies, including tort coverage, with the superintendent of | 0019| insurance no later than sixty days before the effective date of | 0020| the provisions of the Personal Choice Auto Insurance Act, for | 0021| review and approval pursuant to Chapter 59A, Article 17 NMSA | 0022| 1978. | 0023| B. Each motor vehicle insurer's statewide average | 0024| premium for a personal compensation policy with minimum | 0025| required benefits during the first year following the effective | 0001| date of the Personal Choice Auto Insurance Act shall be at | 0002| least thirty percent less than the motor vehicle insurer's | 0003| statewide average premiums for calendar year 1996 for mandatory | 0004| insurance coverage, unless the motor vehicle insurer first | 0005| demonstrates at a rate hearing that such a decrease will result | 0006| in inadequate rates. For the purposes of this subsection, | 0007| "mandatory insurance coverage" means the minimum limits for | 0008| bodily injury and property damage liability set forth in | 0009| Section 66-5-215 NMSA 1978 immediately prior to the effective | 0010| date of this act and the minimum uninsured and underinsured | 0011| motorist coverage set forth in Section 66-5-301 NMSA 1978. | 0012| C. If a combination of insurers selling more than | 0013| fifty percent of the automobile insurance in this state, as | 0014| measured by direct earned premium for calendar year 1996, | 0015| cannot reduce their premiums as required by Subsection B of | 0016| this section, because such a reduction would result in | 0017| inadequate rates as determined by the superintendent of | 0018| insurance, this act is repealed effective one year after the | 0019| effective date of its provisions. | 0020| D. Prior to the effective date of the provisions of | 0021| the Personal Choice Auto Insurance Act, the superintendent of | 0022| insurance may adopt and promulgate regulations, approve | 0023| proposed policy forms and review and approve motor vehicle | 0024| insurance rates for coverages to be made available under that | 0025| act. | 0001| Section 58. REPEAL.--Sections 66-5-219, 66-5-221 and | 0002| 66-5-223 NMSA 1978 (being Laws 1955, Chapter 182, Section 321 | 0003| and Laws 1978, Chapter 35, Sections 306 and 308, as amended) | 0004| are repealed. | 0005| Section 59. SEVERABILITY.-- | 0006| A. Except as provided otherwise in Subsection B of | 0007| this section, if any provision of the Personal Choice Auto | 0008| Insurance Act or the application thereof to any person, | 0009| organization or circumstance is held to be unconstitutional or | 0010| otherwise invalid, the remainder of that act and the | 0011| application of such provision to other persons or circumstances | 0012| shall not be affected. | 0013| B. If Section 12 of the Personal Choice Auto | 0014| Insurance Act is found to be unconstitutional or invalid, in | 0015| whole or in part, it is to be conclusively presumed that the | 0016| legislature would not have enacted the remainder of this act | 0017| without such limitations and this act shall be invalid. | 0018| Section 60. EFFECTIVE DATE.--The effective date of the | 0019| provisions of: | 0020| A. Sections 1 through 56 and 58 of this act is July | 0021| 1, 1998; and | 0022| B. Sections 57 and 59 of this act is July 1, 1997. | 0023| |