Section 65-2A-18 - Financial responsibility. - New Mexico Statutes

65-2A-18. Financial responsibility.

A.     The commission shall prescribe minimum requirements for financial responsibility for all motor carriers, including incidental carriers pursuant to this section.  Rules regarding financial responsibility of incidental carriers shall be adopted by July 1, 2006 by the commission, and implementation of the financial responsibility requirements for incidental carriers shall begin on July 1, 2006.

B.     A motor carrier or incidental carrier shall not operate on the highways of this state without having filed with the commission proof of financial responsibility in the form and amount as the commission shall by rule prescribe.  The maximum amount of financial responsibility, as determined by the commission, for incidental carriers shall not exceed that required of other motor carriers.

C.     In prescribing minimum requirements for financial responsibility for motor carriers, the commission shall consider:

(1)     the creation of sufficient incentives to motor carriers to maintain and operate their equipment in a safe manner;

(2)     the number of passengers being transported;

(3)     the nature of the transportation services provided by the motor carrier; and

(4)     other factors necessary to ensure that motor carriers maintain an appropriate level of financial responsibility.

D.     The commission 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 commission 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 [59A-1-1 NMSA 1978] to the contrary, the commission 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 single state 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