REQUIRED DISCLOSURE TO AUTOMOBILE INSURANCE POLICYHOLDERS THAT UNINSURED MOTORIST / UNDERINSURED MOTORIST (“UM/UIM”) COVERAGE MUST BE OFFERED ON A PER-VEHICLE COST BASIS

STATE OF NEW MEXICO OFFICE OF SUPERINTENDENT OF INSURANCE SUPERINTENDENT OF INSURANCE Alice T. Kane DEPUTY SUPERINTENDENT Timothy Vigil SANTA FE LOCATION (MAIN OFFICE) (OVERNIGHT/SECOND DAY MAIL ONLY) 1120 Paseo De Peralta, 4th Floor Santa Fe, New Mexico 87501 (USPS MAIL ONLY) P O Box 1689 Santa Fe, New Mexico 87504 Main Phone: (505) 827-4601 | Toll Free: (855) 4 - ASK - OSI www.osi.state.nm.us BULLETIN 2025-013 OCTOBER __, 2025 TO: ALL AUTOMOBILE INSURERS (INSURERS) COVERING RISKS LOCATED IN NEW MEXICO RE: REQUIRED DISCLOSURE TO AUTOMOBILE INSURANCE POLICYHOLDERS THAT UNINSURED MOTORIST / UNDERINSURED MOTORIST ("UM/UIM") COVERAGE MUST BE OFFERED ON A PER-VEHICLE COST BASIS This Bulletin adds to the existing UM/UIM Disclosure and Exclusion requirements that continue to be required by Bulletin 2021-024. This Bulletin is issued following the court opinion in Kileen v. Didio, New Mexico Supreme Court Docket No. S-1-SC 39256, filed June 30, 2025 (Kileen). The Kileen opinion created the following law: After careful consideration, we hold that the clear remedial purpose of New Mexico's UM/UIM statute and public policy require that insurers offer UM/UIM coverage on a per-vehicle basis. [legal citations omitted] . . . By offering such coverage on a per-vehicle basis, consumers will have the option of purchasing the coverage they can afford rather than purchasing UM/UIM coverage on all vehicles on a multi-vehicle policy or rejecting coverage in its entirety. . . . "[I]n order for the offer and rejection requirements of Section 66-5-301 [of the NM Motor Vehicle Code] to effectuate the policy of expanding UM/UIM coverage, the insurer is required to meaningfully offer such coverage and the insured must knowingly and intelligently act to reject it before it can be excluded from a policy." (citing to 2010-NMSC-001, ¶16, Marckstadt v. Lockheed Martin Corp.)  B U L L E T I N 2 0 2 5 - 0013 P a g e | 2 SANTA FE LOCATION (MAIN OFFICE) (OVERNIGHT/SECOND DAY MAIL ONLY) 1120 Paseo De Peralta, 4th Floor Santa Fe, New Mexico 87501 (USPS MAIL ONLY) P O Box 1689 Santa Fe, New Mexico 87504 Main Phone: (505) 827-4601 | Toll Free: (855) 4 - ASK - OSI www.osi.state.nm.us All Insurers covering risks in New Mexico are hereby notified that OSI now requires every insurer to immediately adopt per-vehicle Disclosure and Exclusion forms for use in new motor vehicle or automobile insurance applications or policy changes. The Kileen precedent applies prospectively to all automobile policies. However, the statute that was assessed by the Court applies to all types of automobile insurance policies. For these reasons, and because the Court did not exclude commercial or fleet automobile policies from its holding, the Superintendent notifies Insurers that the Kileen decision applies to individual as well as commercial and fleet automobiles. Automobile Insurers may propose language to be used in addition to the OSI suggested language provided in Appendices A and B, or they may develop their own language without using the OSI suggested language. If an automobile Insurer elects to add language or to develop its own language, the automobile Insurer must file proposed notification language for OSI review in accordance with the normal form review process set forth in NMSA 1978, § 59A-18-12 and OSI rules which provide for a sixty (60) day statutory review period. If using their own proposed language, whether in addition to or instead of the OSI suggested language, automobile insurers shall develop and distribute the new Disclosure and Exclusion form to existing policyholders as soon as practicable, but not later than thirty (30) days after OSI approves the language or after the end of the sixty (60) day statutory period, whichever occurs first. If an automobile insurer has already filed in SERFF its own Disclosure and Exclusion language to comply with the Kileen court law but wishes to adopt the OSI language in Appendices A and B, the automobile insurer may withdraw its filing and file the updated form. For specific questions regarding this Bulletin, please contact Melissa Robertson via email at: melissa.robertson@osi.nm.gov. ISSUED this ___ day of October, 2025. __________________________________ ALICE T. KANE Superintendent of Insurance _______________________ _ _______ LICE T KANE 28 B U L L E T I N 2 0 2 5 - 0013 P a g e | 3 SANTA FE LOCATION (MAIN OFFICE) (OVERNIGHT/SECOND DAY MAIL ONLY) 1120 Paseo De Peralta, 4th Floor Santa Fe, New Mexico 87501 (USPS MAIL ONLY) P O Box 1689 Santa Fe, New Mexico 87504 Main Phone: (505) 827-4601 | Toll Free: (855) 4 - ASK - OSI www.osi.state.nm.us APPENDIX A: Disclosure - OSI Suggested Language PER-VEHICLE OFFER FOR UNINSURED MOTORIST/UNDERINSURED MOTORIST (UM/UIM) COVERAGE In any policy we offer you, we must disclose to you the premium cost you would pay per vehicle for UM/UIM coverage. You have the option to pay for UM/UIM coverage on a per-vehicle basis. Disclosing to you these specific premium costs per vehicle allows you to choose UM/UIM coverage that fits your financial situation. You may choose to pay for, or may reject in writing, UM/UIM coverage on a pervehicle basis in your policy. APPENDIX B: Exclusion - OSI Suggested Language [Automobile Insurance Company name] disclosed the specific premium cost I would pay per motor vehicle for UM/UIM coverage so I can decide if per-vehicle coverage fits my financial situation. This Motor Vehicle/Automobile Insurance Policy excludes, and I specifically reject, UM/UIM policy coverage on a per-vehicle basis. This exclusion is made in accordance with New Mexico Supreme Court law, as set forth in Kileen v. Tamberin decided on June 30, 2025.