The bill amends Section 59A-18-17 of the New Mexico Insurance Code to revise the requirements for residential property insurance, specifically regarding the payment of depreciation. It mandates that insurance coverage in residential property policies must cover the cost to repair or replace property without any deductions for depreciation. Additionally, if the insured chooses to perform the repairs themselves, they are allowed a reasonable overhead expense. The bill introduces a new provision stating that at the time of settlement, insurers are required to pay one hundred percent of the replacement cost less depreciation, with the remaining costs to be paid upon completion of the rebuild or replacement, capped at the replacement cost or policy limits.

The bill also maintains existing provisions that ensure insurance contracts contain standard or uniform provisions as required by the Insurance Code, and it allows for the approval of substitute provisions by the superintendent if they are deemed not less favorable to the insured. Furthermore, it includes provisions for policies issued by domestic insurers for delivery in other jurisdictions and allows the superintendent to specify minimum coverage provisions for various types of insurance policies to protect consumers and enhance consumer information systems.

Statutes affected:
introduced version: 59A-18-17