COVERAGE FOR CERTAIN INSURANCE RISKS

SB 215 clarifies when insurance policies must cover damage caused by a mix of covered and excluded risks. It requires policies to cover losses if the covered risk was the "efficient proximate cause" (the main cause) of the damage, but not if it was only a minor or remote factor. This directly affects homeowners and auto insurance policyholders in New Mexico by standardizing how insurers handle such claims. The bill amends Section 59A-18-17 of New Mexico's Insurance Code to implement this standard. The measure was referred to committees but was postponed indefinitely on June 3, 2025.