The New Mexico Supreme Court ruled Monday that insurance companies must adequately disclose limitations of minimum uninsured or underinsured motorist coverage. Otherwise, they may not charge a premium for it.
The case, Crutcher v. Liberty Mut. Ins., came before the state high court on certification from the U.S. District Court for the District of New Mexico. The Supreme Court was asked whether minimum UM/UIM limits of $25,000 per person and $50,000 per accident are “illusory” for an insured motorist who has more than $25,000 in damages caused by a minimally insured motorist.