Bill > SB55

This bill modifies New Mexico's insurance law regarding residential property insurance claims by changing how insurers handle depreciation payments. Specifically, the bill requires insurers to pay the full replacement cost less depreciation at the time of initial settlement, with the remainder of the replacement cost to be paid upon completion of repairs or replacement, not exceeding the total replacement cost or policy limits. This means homeowners will receive their full insurance claim in two stages: first, an upfront payment that accounts for depreciation, and then a final payment after the repairs or replacement are completed. The change aims to provide more flexibility and financial support to homeowners during the insurance claim process, ensuring they can fully restore their property without being financially penalized by depreciation deductions. The bill amends Section 59A-18-17 of the New Mexico State Annotated (NMSA) 1978, which governs standard provisions for insurance contracts, and is part of the broader Insurance Code designed to protect consumers and regulate insurance practices in the state.

Health and Social Services

https://www.nmlegis.gov/Legislation/Legislation?chamber=S&legtype=B&legno=55&year=25