Hart V. State Farm (New Mexico)

(August 2021) - New Mexico courts continue to require insurance companies to afford insureds a fair opportunity to consider the actual cost of UM/UIM coverage by reforming policies that do not accurately reflect premium costs corresponding to available levels of UM/UIM coverage.

In New Mexico, for a rejection of UM/UIM coverage to be valid, the insurer must:

1. Offer the insured UM/UIM coverage equal to their liability limits;
    
2. Inform the insured about premium costs corresponding to the available levels of coverage;
    
3. Obtain a written rejection of UM/UIM coverage which is not equal to the liability limits; and
    
4. Incorporate that rejection into the policy in a way that affords the insured a fair opportunity to reconsider their decision to reject UM/UIM coverage.