Limits on Force-placed Insurance

"Creditor-placed insurance may not include:
A. coverage for the cost of repossession or the cost of storing repossessed collateral;
B. skip, confiscation and conversion coverage;
C. coverage that pays the credit transaction deficiency or insurance premium deficiency;
D. coverage for payment of mechanics' or other liens that do not arise from a covered loss or occurrence;
E. coverage that indemnifies creditors for losses caused by their failure to record instruments which provide evidence of collateral security;
F. for motor vehicles, coverage other than collision and comprehensive; or
G. for mobile homes, coverage that is broader than a basic fire and extended coverage policy such as ISO Form DP001 0696.
NMAC 13.18.3.11. "

There is no general prohibition against force-placed insurance for commercial transactions under New Mexico Law.