A House committee on Tuesday heard House Bill 97, a proposal to require insurers to offer and honor per-vehicle uninsured and underinsured motorist coverage and to change how offsets are applied when a claimant is hit by an insured driver, sponsor Representative Anar said.

The bill’s sponsor, Representative Anar, told the committee the measure would “require that anyone who purchases underinsured, uninsured motorist coverage, gets the underinsured coverage they pay for.” She described the change as intended to prevent an offset that currently cancels consumers’ underinsured benefits when another driver has the state-required minimum liability policy.

The bill’s lead witness, attorney Jeff Romero, told lawmakers the current practice has produced litigation. “The court said no. That’s repugnant conduct. You can’t bill for something and then not provide it,” Romero said, arguing a per-vehicle selection and a clarified definition would give consumers the coverage shown on their declarations page.

Trial lawyer Damon Hudson said the bill would help injured people recover damages they have been paying for in premiums. “This allows people to get coverage and compensation for their…injuries that they have been paying for,” Hudson said.

Insurer representatives opposed the measure, saying it could raise premiums and reduce affordability. Brent Moore of the American Property Casualty Insurance Association told the committee, “This bill would force everyone to pay for that insurance that will, in turn, cause folks to have to pay more for insurance.” Anne Conway, representing State Farm, said a company analysis showed about a 38% increase for some policyholders and noted the superintendent of insurance’s fiscal analysis also flagged premium increases.

Members asked a range of technical questions. Representative Dow asked whether lenders could require or roll coverage into loan payments; Romero said finance companies typically require insurance only to protect the vehicle and do not address wage-loss or medical coverage. Representative Brown and others pressed on how the bill would treat off-highway vehicles, and Romero said the mandatory financial responsibility act only applies to vehicles licensed for use on public highways.

Committee discussion also included data offered by the sponsor and witnesses: testimony cited New Mexico crash and enrollment data for 2023 and an average medical cost per crash; those figures were used to estimate potential Medicaid costs tied to uninsured drivers. The sponsor asked for more time to receive and discuss the Office of the Superintendent of Insurance’s (OSI) analysis, and the committee agreed to roll HB 97 to Thursday so OSI could appear and comment.

The bill would not set premium rates, Representative Anar said, and would not direct insurers on pricing. Instead, she said the change would clarify consumer expectations about the coverage they purchase and reduce litigation over rejections and offsets.

Next steps: the committee postponed further action on HB 97 until Thursday to allow OSI to provide comment and analysis.