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HM 55

LINCOLN COUNTY HOMEOWNER RELIEF

2025 Regular Session Introduced by Harlan Vincent

Memorial urging OSI to approve higher FAIR Plan residential limits (potentially up to $750,000) to help Lincoln County homeowners rebuild

action postponed indefinitely
#insurance #memorials #other
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Bill Summary · HM 55

Summary of House Memorial 55 (HM55) — Lincoln County Homeowner Relief

Overview

  • Bill Number: HM 55
  • Title: Lincoln County Homeowner Relief
  • Type: House Memorial (non-binding)
  • Introduced: March 10, 2025
  • Status: Action postponed indefinitely as of June 3, 2025
  • Primary Sponsor: Representative Vincent
  • Subject: Insurance, Memorials, Other

Purpose and Intent

HM55 expresses the New Mexico House of Representatives’ support for the New Mexico Property Insurance Program (the FAIR Plan) decision to increase residential coverage limits. It urges the Office of Superintendent of Insurance (OSI) to approve the proposed changes. The memorial notes that higher limits would provide relief to Lincoln County homeowners and enable policyholders to move forward with rebuilding efforts.

Important note: As a memorial, HM55 itself does not enact new law or create spending. It is a formal expression of legislative sentiment urging agency action. If enacted, memorial provisions about timing would take effect 90 days after legislative adjournment (aimed to be June 20, 2025).

Key Provisions and Changes (as discussed in HM55)

  • Supports increases in residential coverage limits under the New Mexico Property Insurance Program (FAIR Plan). The OSI would approve the proposed changes.
  • Context provided: the FAIR Plan acts as the insurer of last resort for essential property insurance and covers actual cash value (depreciated value) rather than replacement cost.
  • Provisional and proposed increases to residential limits have occurred:
    • 2023: Residential limit increased from $250,000 to $350,000 (commercial limit remains $1,000,000).
    • February 2025: Proposal to raise residential limits to $750,000.
    • March 2025: OSI provided provisional approval for the $750,000 increase, expiring June 20, 2025, with pending SB81 changes.
    • March 12, 2025: The governing committee indicated provisional approval was insufficient to move forward without SB81 changes.
  • SB81 (Senate Bill 81) would alter the governing structure of the NM Property Insurance Program and place maximum coverage limits in statute. HM55 notes the relationship with SB81.

Affected Parties and Impacts

  • Homeowners in Lincoln County: Potentially increased coverage limits could improve eligibility and affordability, aiding rebuilding efforts after disasters.
  • Policyholders in the FAIR Plan: Changes could affect coverage availability, premium economics, and potential assessments.
  • Insurers: Could face changes in assessments and underwriting dynamics if higher limits become statute-linked (per SB81) or approved by OSI.

Fiscal and Administrative Aspects

  • Fiscal Impact: HM55 contains no appropriation and has no direct fiscal impact.
  • Related Fiscal Note: Indicates no immediate operating budget impact; the analysis notes potential connections to SB81 and OSI actions.
  • Effective Date: If enacted (as a memorial), would take effect 90 days after adjournment or by June 20, 2025.

Procedural Timeline

  • 2025-03-10: HM55 referred to House Government, Elections and Indian Affairs Committee.
  • 2025-06-03: Action postponed indefinitely (no further committee action currently planned).
  • HM55 relates closely to SB81, which would enact structural changes to the program and set coverage limits in statute.

Bottom Line

HM55 is a non-binding memorial urging OSI to approve proposed increases in residential coverage limits under the NM Property Insurance Program, with the aim of delivering relief to Lincoln County homeowners. While it signals legislative support for higher limits (potentially up to $750,000), the bill itself does not enact changes and has been placed on hold. The combined policy context includes ongoing developments around SB81 and provisional 2025 approvals that would need to be finalized for any substantive change to take effect.

Compiled from official sources — confirm details with the bill’s official record.

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