New Mexico Administrative Code
Title 13 - INSURANCE
Chapter 13 - PROPERTY INSURANCE
Part 2 - RESIDENTIAL PROPERTY INSURANCE COVERAGE REQUIREMENTS
Section 13.13.2.7 - DEFINITIONS
Current through Register Vol. 35, No. 18, September 24, 2024
A. "Authorized insurer" has the meaning given in Section 59A-1-8 NMSA 1978. For purposes of this rule, the FAIR plan established pursuant to Chapter 59A, Article 29 NMSA 1978, is not an authorized insurer.
B. "Claims settlement" means an agreement between an authorized insurer and claimant as to the amount of money owed to the claimant on a particular claim.
C. "Coinsurance requirement" means a provision in an insurance policy that requires that the limit of liability be within a specified percentage of the replacement cost of the covered property.
D. "Extended coverage peril" means: windstorm, hail, smoke, explosion, riot or civil commotion, aircraft damage, vehicle damage, or volcanic eruption.
E. "Fire" means a rapid oxidation with a flame or glow that is hostile, or goes beyond intended confines.
F. "Replacement cost" means material and labor expenses plus all other reasonable and necessary expenses involved in the repair or replacement of damaged property.
G. "Residence" means a structure used solely as a place for people to live and having not more than four apartments or units; or, a residence means an individually owned condominium, rowhouse, or townhouse used solely as a place for people to live. A residence is not an out-building, shed, barn, detached garage or similar structure, vacant structure, motel, hotel, licensed health care facility, homeless shelter, shelter for battered women and/or children, jail, camp, a vehicle licensed by a governmental agency, barracks, orphanage, dormitory or any other structure where people live on a transient basis. Personal property contained within a residence is not part of a residence.
H. "Residential property insurance" means insurance of a residence against direct loss or damage from fire or extended coverage peril. Residential property insurance does not include insurance against the liability of the insured for loss or damage to the property or property interest of another, title insurance as defined by Section 59A-7-9 NMSA 1978, or other consequential loss or damage resulting from fire or extended coverage peril.
I. "Vacant structure" means a structure in which no person has lived for at least thirty consecutive days.
