All insurers in New Mexico now have to immediately update their disclosure and notification forms to show uninsured and underinsured motorist coverage on a per-vehicle basis, the Office of Superintendent of Insurance said.
The move follows a June ruling from the state’s Supreme Court in Kileen v. Didio.
The court decided that New Mexico’s UM/UIM statute and policy language require insurers to offer per-vehicle coverage.
It said this structure gives consumers a clearer view of what the coverage costs and whether they can afford it. Before the ruling, anyone with multiple vehicles faced a blunt choice – buy coverage for every car or reject it entirely.
Insurers must now spell out the per-vehicle costs in every offer. They also have to inform policyholders that UM/UIM coverage can be purchased for individual vehicles and can be rejected in writing.
The regulator said these changes are meant to ensure customers make informed decisions instead of blanket acceptances or rejections.
The court’s opinion tightened the definition of what counts as a valid offer and rejection.
For coverage to be excluded, insurers must “meaningfully offer” it, and policyholders must “knowingly and intelligently” reject it. Anything less doesn’t meet statutory requirements.
Because the statute applies to all auto policy types – personal, commercial, or fleet – and the court didn’t carve out exceptions, the superintendent’s office said the ruling hits every carrier writing auto lines in the state.
Companies can tweak the regulator’s proposed notification language but must submit their modified wording for review.
Insurers that already filed disclosures based on Kileen can withdraw and refile updated language if they choose.
Requests for further comment from the regulator went unanswered.
In a separate move, the superintendent’s office also raised the state’s FAIR Plan commercial limit to $2 mn, saying the higher cap should improve access to coverage for more businesses across New Mexico.
