Summary:

 Senate Bill 215 (SB 215):  This legislative act seeks to refine and clarify insurance coverage rules in New Mexico, particularly enhancing protections for residential property owners. By specifying coverage expectations and clarifying the handling of mixed-cause losses, the act intends to improve the insurance landscape for consumers while maintaining a viable market environment for insurers. This approach not only aids in consumer protection but also supports market stability and the growth of the insurance sector within the state. 

Legislation Overview:

 Senate Bill 215 (SB 215):  This legislative act focuses on modifying existing standards and provisions related to insurance policies, particularly those dealing with residential property and general coverage in New Mexico.  The key aspects and implications of the proposed changes include:
a)	Uniform Provisions: The act reinforces the requirement that insurance contracts must include standard provisions as dictated by the Insurance Code. This helps to maintain consistency and predictability in insurance policies.
b)	Coverage for Repair Costs: It mandates that residential property insurance policies cover the cost to repair or replace damaged property without deducting for depreciation. This provision is particularly significant as it ensures homeowners receive sufficient funds to restore their property to its previous condition.
c)	Coverage by Insured's Own Effort: If a homeowner chooses to conduct repairs themselves, the policy must now allow for a reasonable overhead expense. This addition provides flexibility and acknowledges DIY efforts, which can be a cost-effective solution for many property owners.
d)	Provisions for Foreign or Alien Insurers: The act allows foreign or alien insurers to use provisions similar to those required in their domicile, provided they are approved by the superintendent. This flexibility can make New Mexico an attractive market for foreign insurers, potentially increasing competition and options for consumers.

The act clarifies the handling of claims involving both covered and excluded risks. Coverage must be provided if the covered risk is the efficient proximate cause of the loss, distinguishing it from cases where the covered risk is merely a remote cause. This clause is crucial for ensuring fair handling of claims where multiple factors are involved.

Implications:  Enhanced Consumer Protection: By ensuring full replacement costs without depreciation and recognizing the homeowner's efforts in repairs, the act boosts protection for property owners, which can lead to greater satisfaction and fewer disputes over claims.

Regulatory Flexibility: The ability for foreign and alien insurers to use approved provisions from their jurisdictions may encourage more companies to offer services in New Mexico, enhancing consumer choice.

Clarification of Coverage in Mixed-Cause Losses: The specification on how claims are to be handled when involving both covered and excluded risks clears up potential ambiguities, leading to a more straightforward claims process and reducing the likelihood of litigation.