A. The bureau shall require each licensee to have combined single limit public liability insurance of a reasonable amount determined by the commission. Such coverage shall be filed on a certificate to be prescribed by the commission, and the coverage shall be effective until canceled by either the carrier or the licensee. The provisions of this subsection do not apply to manufacturers of LP gas.
B. The licensee may file as an alternative to insurance described in Subsection A of this section a corporate surety bond of a reasonable amount determined by the commission.
C. The insurance or the surety bond shall be purchased from a company licensed to do business in New Mexico.
D. The certificate of insurance or the surety bond filed with the bureau shall continue to be effective until thirty days after the date the bureau is notified in writing of the cancellation of the insurance or surety bond.
History: 1953 Comp., § 65-7-11, enacted by Laws 1973, ch. 362, § 11; 1977, ch. 245, § 133; 1989, ch. 6, § 56.
Repeals and reenactments. — Laws 1973, ch. 362, § 11, repealed former 65-7-11, 1953 Comp., relating to proof of financial responsibility, and enacted a new 70-5-11 NMSA 1978.
The 1989 amendment, effective July 1, 1989, substituted "commission" for "committee" and made minor stylistic changes throughout Subsections A and B, and inserted "described in Subsection A of this section" in Subsection B.
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