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

BULLETIN 2025-013

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.)

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.

For complete content please see PDF below.

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

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