A. Insurance contracts shall contain such standard or uniform provisions as are required by applicable provisions of the Insurance Code [Chapter 59A NMSA 1978] pertaining to contracts of particular kinds of insurance.
B. No policy shall contain a provision inconsistent with or contradictory to a standard or uniform provision used or required to be used, but the superintendent may approve a substitute provision that is, in the superintendent's opinion, not less favorable in any particular to the insured, owner or beneficiary than the provision otherwise required or that is designed to comply with Chapter 59A, Article 19 NMSA 1978.
C. Insurance coverage provided in residential property insurance policies shall provide coverage for the cost to repair or replace without deduction for depreciation. If the insured elects to effectuate repairs to the property by the insured's own self, a reasonable overhead expense shall be allowed.
D. In lieu of the provisions required by the Insurance Code for contracts for particular kinds of insurance, substantially similar provisions required by the laws of the domicile of a foreign or alien insurer may be used when approved by the superintendent.
E. A policy issued by a domestic insurer for delivery in another jurisdiction may contain any provision required or permitted under the laws of such jurisdiction.
F. To protect consumers as well as enhance the value of consumer information systems, the superintendent may specify minimum coverage provisions that homeowners insurance policies, private passenger non-fleet automobile insurance policies or other lines or kinds of insurance policies that are priced in a consumer information system shall contain, provided that such minimum coverage provisions are contained in the majority of policies in force in New Mexico for that line or kind of insurance. An insurer that does not offer a policy that contains the minimum coverage provisions specified by the superintendent for a line or kind of insurance shall not be included in a consumer information system for that line or kind of insurance. The superintendent shall not compel an insurer to offer a policy containing minimum coverage provisions specified by the superintendent.
History: Laws 1984, ch. 127, § 346; 1993, ch. 85, § 1; 2007, ch. 367, § 37.
ANNOTATIONSThe 2007 amendment, effective July 1, 2007, added Subsection F.
The 1993 amendment, effective June 18, 1993, substituted "Chapter 59A, Article 19 NMSA 1978" for "Article 19 (policy language simplification) of the Insurance Code" at the end in Subsection B, added Subsection C, and redesignated former Subsections C and D as Subsections D and E.
Owned vehicle exclusion. — Where the owned vehicle exclusion of the insured's motor vehicle policy defined the insured to include the insured's spouse, the policy excluded coverage for the use by the insured of a vehicle owned by the insured's spouse that was not listed on the insured's policy. Sheldon v. The Hartford Ins. Co., 2008-NMCA-098, 144 N.M. 562, 189 P.3d 695.
Regular use exclusion. — Where the insured could use his wife's vehicle whenever he wanted; the insured regularly used the vehicle in connection with his wife's business to make bank deposits, pick up items and run errands; and the vehicle was not listed on the insured's policy, the regular use exclusion in the insured's motor vehicle policy excluded coverage for his wife's vehicle. Sheldon v. The Hartford Ins. Co., 2008-NMCA-098, 144 N.M. 562, 189 P.3d 695.
Superintendent possesses authority to approve substitute uninsured motorist endorsement that does not precisely conform to the endorsement prescribed in the uninsured motorist regulations. McMillian v. Allstate Indem. Co., 2004-NMSC-002, 135 N.M. 17, 84 P.3d 65.