Financial responsibility.

A. The department shall prescribe minimum requirements for financial responsibility for all motor carriers. B. A motor carrier shall not operate on the highways of this state without having filed with the department proof of financial responsibility in the form and amount as the department shall by rule prescribe. C. In prescribing minimum requirements for financial responsibility for motor carriers, the department shall adopt the same minimum liability insurance requirements as those required by the federal motor carrier safety administration for interstate motor carriers for all motor vehicles for carriage of property or household goods and for all passenger motor vehicles with such capacities. The department shall adopt reasonable minimum liability insurance requirements for the use of passenger motor vehicles with capacities less than those regulated by the federal motor carrier safety administration and in doing so shall consider the number of passengers being transported and the nature of the transportation services provided by the motor carriers using vehicles of those capacities. D. The department may authorize a motor carrier to carry its own insurance in lieu of filing a policy of insurance, certificate showing the issuance of a policy of insurance or a surety bond. In approving an application to be self-insured, the department shall consider: (1) the financial stability of the carrier; (2) previous loss history of the carrier; (3) the safety record of the carrier; (4) the size, nature of operations and other operating characteristics of the carrier; and (5) other factors necessary for the protection of passengers, shippers and the public. E. Notwithstanding any requirement of the New Mexico Insurance Code [Chapter 59A NMSA 1978] to the contrary, the department may accept proof of public liability insurance from an insurer not authorized in New Mexico if: (1) the insurance is for an interstate motor carrier transporting commodities exempt from regulation by the federal motor carrier safety administration participating in the unified carrier registration system for those motor carriers; and (2) the insurer is authorized to write public liability insurance in at least one other state. F. All motor carriers shall carry proof of financial responsibility in each motor vehicle they operate in this state.