2023 New Mexico Statutes › Chapter 59A - Insurance Code › Article 20 - Life Insurance and Annuity Contracts › Section 59A-20-3 - Standard provisions required.

A. No insurer shall deliver or issue for delivery in this state any life insurance policy unless the policy contains in substance all of the applicable standard provisions required by Sections 369 through 380 [59A-20-4 to 59A-20-15 NMSA 1978] of this article, subject to Section 346 [59A-18-17 NMSA 1978] of the Insurance Code as to waiver or use of substitute provisions with the superintendent's approval.
B. This section does not apply as to group or pure endowment policies, annuity contracts or any provision of a life insurance policy or contract supplemental thereto relating to disability benefits or additional benefits in event of death by accident or accidental means.
C. Any of such provisions or portions thereof not applicable to single premium or nonparticipating or term policies, or insurance granted in exchange for lapsed or surrendered policies, shall to that extent not be incorporated therein.
History:
Laws 1984, ch. 127, § 368.
ANNOTATIONS
Cross references.
— For existing forms and filings,
see
notes following 59A-5-21 NMSA 1978.
Contract construed to effectuate both insuring and excepting clauses.
— The insurance contract must be construed, whenever possible, to give effect to both provisions of the policy, that is, the insuring clause and the excepting clause.
King v. Travelers Ins. Co.
, 1973-NMSC-013, 84 N.M. 550, 505 P.2d 1226.
Exceptions, limitations and exclusions to insuring agreements require narrow construction
on the theory that the insurer, having affirmatively expressed coverage through broad promises, assumes a duty to define any limitations upon that coverage in clear and explicit terms.
King v. Travelers Ins. Co.
, 1973-NMSC-013, 84 N.M. 550, 505 P.2d 1226.
Ambiguous policy liberally construed to favor insured.
— An insurance policy which may reasonably be construed in more than one way should be construed liberally in favor of the insured. Where no ambiguity or uncertainty appears in the policy, no place is found for the operation of the rule.
Gray v. International Serv. Ins. Co.
, 1963-NMSC-195, 73 N.M. 158, 386 P.2d 249.
In the event the policy is ambiguous, the contract will be construed favorably to the insured who did not prepare it.
King v. Travelers Ins. Co.
, 1973-NMSC-013, 84 N.M. 550, 505 P.2d 1226.
If an ambiguity is apparent in the terms of a policy, the court must construe the contract so as to sustain indemnity if the sense and meaning of the instrument are not thereby destroyed.
King v. Travelers Ins. Co.
, 1973-NMSC-013, 84 N.M. 550, 505 P.2d 1226.
Words given ordinary meanings.
— Absent any provision in the policy defining "accidental means" as something different from that as understood by the general public, words, phrases or terms will be given their ordinary meaning.
Scott v. New Empire Ins. Co.
, 1965-NMSC-034, 75 N.M. 81, 400 P.2d 953.
Where there is no ambiguity the court must construe the language of a policy in accordance with the plain, ordinary meaning of its terms.
King v. Travelers Ins. Co.
, 1973-NMSC-013, 84 N.M. 550, 505 P.2d 1226.
Technical interpretations not given.
— A strict technical or legalistic interpretation of the terms of the policy will not be accepted when it is fully within the power of the insurance company to affirmatively specify some meaning other than that understood by the average individual.
Scott v. New Empire Ins. Co.
, 1965-NMSC-034, 75 N.M. 81, 400 P.2d 953.