This bill amends the New Mexico Insurance Code by establishing that foster children are not considered residents of foster homes for the purposes of homeowners insurance. Specifically, it introduces a new provision stating that a minor child placed in substitute care or foster care by the children, youth, and families department or a licensed child placement agency will not be disqualified from coverage under any premises liability insurance policy due to their placement status.

The intent of this legislation is to ensure that foster children receive the same protections under homeowners insurance as other minors, thereby preventing any potential gaps in coverage that could arise from their unique living situations. This change aims to enhance the welfare of foster children by clarifying their insurance status and ensuring they are adequately protected while in foster care.