2018 New Mexico Statutes
Chapter 66 - Motor Vehicles
Article 5 - Licensing of Operators and Chauffeurs; Financial Responsibility; Uninsured Motorists' Insurance; Identification Cards
Section 66-5-222 - Driver exclusion endorsement form.

Any motor vehicle insurance policy may be endorsed to exclude a named driver from coverage. The endorsement shall be signed by at least one named insured. Endorsements shall be substantially similar to the following form:

"DRIVER EXCLUSION ENDORSEMENT

Nothing herein contained shall be held to alter, vary, waive or extend any of the terms, conditions, agreements or limits of the undermentioned policy other than as stated herein below.

Effective - 12:01 a.m., standard time. Attached to and forming part of Policy No. issued to by

(name of insured)

(insert name of insurance company)

In consideration of the premium for which the policy is written, it is agreed that the company shall not be liable and no liability or obligation of any kind shall be attached to the company for losses or damages sustained after the effective date of this endorsement while any motor vehicle insured hereinunder is driven or operated by .

(name of excluded driver(s))

Date: _____________________________ Name insured(s)

__________________________________________________

________________________________________________".

History: 1953 Comp., § 64-24-87.1, enacted by Laws 1977, ch. 61, § 2; recompiled as 1953 Comp., § 64-5-231, by Laws 1978, ch. 35, § 307; 1978 Comp., § 66-5-231, recompiled as 1978 Comp., § 66-5-222, by Laws 1983, ch. 318, § 41; 1998, ch. 34, § 11.

Recompilations. — Laws 1983, ch. 318, § 15, recompiled former 66-5-222 NMSA 1978, relating to amount of payments sufficient to satisfy requirements of the Mandatory Financial Responsibility Act, as 66-5-215 NMSA 1978, effective January 1, 1984.

The 1998 amendment, effective July 1, 1998, in the section heading, substituted "Driver" for "Drivers"; added the introductory language preceding the endorsement form; and substituted "Driver" for "Drivers" in the endorsement form heading.

Applicable to uninsured coverage. — A driver exclusion agreement applies to uninsured motorist coverage as well as liability coverage. Moore v. State Farm Mut. Auto. Ins. Co., 1994-NMCA-165, 119 N.M. 122, 888 P.2d 1004, cert. denied, 889 P.2d 203.

A clear and unambiguous drivers exclusion endorsement modeled on the one provided in this section relieves insurers from obligations of any kind under liability provisions of the policy such that insurers are not liable for injuries sustained by a passenger while an excluded driver is driving the insured's vehicle. Garza v. Glen Falls Ins. Co., 1986-NMSC-094, 105 N.M. 220, 731 P.2d 363.

Written disclosure of coverage required. — A named-driver exclusion was not a basis to reject uninsured motorist coverage for a class-one insured because the uninsured motorist coverage for class-one insureds was not expressly excluded. Phoenix Indem. Ins. Co. v. Pulis, 2000-NMSC-023, 129 N.M. 395, 9 P.3d 639.

Exclusion endorsement signed by all named insureds. — A driver's exclusion endorsement that does not bear the signatures of all named insureds is ineffective under this part. Tafoya v. Western Farm Bureau Ins. Co., 1994-NMSC-035, 117 N.M. 385, 872 P.2d 358.

Signatures of named insured. — All named insureds on a policy are required to sign the driver's exclusion agreement for the exclusion to be valid. Moore v. State Farm Mut. Auto. Ins. Co., 1994-NMCA-165, 119 N.M. 122, 888 P.2d 1004, cert. denied, 889 P.2d 203.

Consideration for exclusion. — The insurer was not in violation of the consideration requirement because it failed to reduce the premium charged for the elimination of the policyholder's son as a driver since the driver exclusion agreement clearly stated that the insurer would not continue to insure the parents unless they excluded their son as a driver; in consideration for excluding the son as a driver, the father was able to continue purchasing insurance coverage from the insurer. Moore v. State Farm Mut. Auto. Ins. Co., 1994-NMCA-165, 119 N.M. 122, 888 P.2d 1004, cert. denied, 889 P.2d 203.

Am. Jur. 2d, A.L.R. and C.J.S. references. — Validity, construction and application of "named driver exclusion" in automobile insurance policy, 33 A.L.R.5th 121.