N.M. Admin. Code § 13.11.2.11 - REQUIRED NOTIFICATION
A. Any
policy issued or renewed in this state containing legal defense cost offset
provisions must print such provisions in bold type on the face of the
application for insurance and on the face of the policy.
B. Any policy containing legal defense cost
offset provisions specified in Subsection A of
13.11.2.10 NMAC must contain a
statement signed by the insured acknowledging that the insured is aware that
the limits of liability contained in the policy shall be reduced up to the
amount or percentage stated in the policy by legal defense costs and, in such
event, the insurer shall be liable for legal defense costs (except those due to
any offset against the deductible) exceeding that amount of
percentage.
C. Any policy
containing legal defense cost offset provisions specified in Subsection B of
13.11.2.10 NMAC must contain a
statement signed by the insured acknowledging that the insured is aware that
legal defense costs that are incurred shall be applied against the deductible
up to the amount or percentage stated in the policy and, in such event, the
insurer shall be liable for legal defense costs (except those due to any offset
against policy limits) exceeding that amount or percentage.
D. Any policy containing legal defense cost
offset provisions specified in Subsection C of
13.11.2.10 NMAC must contain a
statement signed by the insured acknowledging that the insured is aware that
the limits of liability contained in the policy shall be reduced, and may be
completely exhausted by legal defense costs, and to the extent that policy
limits are thereby exceeded, the insurer shall not be liable for legal defense
costs or for any judgment or settlement.
E. Any signed statement required by
Subsection B of
13.11.2.11 NMAC shall be attached
to and made a part of the policy.
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