The bill amends the "Personal Insurance Credit Information Act" in New Mexico to prohibit insurers from using credit, education, and occupation information when underwriting, rating, or renewing certain personal insurance policies, specifically for private passenger automobiles, motorcycles, and recreational vehicles. The amendments include a new provision that explicitly forbids the use of an applicant's education or occupation in these processes, alongside existing restrictions on the use of credit information and insurance scores.

Additionally, the bill outlines specific limitations on how insurers can utilize credit information, such as not using it to deny or cancel coverage based solely on credit scores, and requiring insurers to obtain current credit information at least every thirty-six months for renewals. It also clarifies that insurers are not obligated to recalculate insurance scores more frequently than every twelve months unless correcting an error. Overall, the bill aims to enhance consumer protection by ensuring that personal insurance decisions are not adversely affected by factors unrelated to the individual's risk profile.

Statutes affected:
introduced version: 59A-17A-1, 59A-17A-4