N.M. Code R. § 13.11.2.8 – General Prohibition of Defense Costs Within Limits

No liability insurance policy, unless specified in 13.11.2.9 NMAC, shall be issued in this state which contain provisions that:

A. reduce the limits of liability in the policy by the amount of legal defense costs; or
B. permit legal defense costs to be applied against the deductible, if any.
[10/13/88; 13.11.2.8 NMAC - Rn, 13 NMAC 11.2.8 NMAC, 6/30/04]