Bill > SB81

This bill creates the New Mexico Property Insurance Program Association Board to administer the Fair Access to Insurance Requirements (FAIR) Plan, which provides property insurance for individuals and businesses unable to obtain coverage in the regular market. The board will consist of nine members appointed by various state officials, including representatives from insurance companies, consumer advocacy groups, and experts in areas like actuarial science and climate science. The board will establish a FAIR plan with specific requirements, including setting premium rates that are actuarially sound and not discriminatory, and establishing coverage limits up to $1 million for property and $5 million for commercial property. The bill mandates that FAIR plan policies can only be sold through member insurers and require evidence of at least three coverage declinations. The board can collect fees from member insurers to maintain the program's solvency, and insurers can recoup these fees through policyholder surcharges. The superintendent of insurance will oversee the board, with the power to enforce compliance, impose fines, or revoke insurance licenses for non-compliant insurers. The bill also includes a $50 million appropriation to support the program's administration and fire mitigation efforts, and it includes an emergency clause to implement the act immediately.

Budget and Finance, Justice

https://www.nmlegis.gov/Legislation/Legislation?chamber=S&legtype=B&legno=81&year=25