The proposed "Travel Insurance Act" seeks to create a regulatory framework for travel insurance in New Mexico by introducing new definitions and classifications, such as "aggregator site," "blanket travel insurance," and "travel protection plan." It mandates that travel insurance policies fall under an inland marine line of insurance and allows for the issuance of limited lines travel insurance producer licenses. The Act outlines the responsibilities of travel retailers and producers, requiring them to provide consumers with clear information regarding coverage, claims processes, and cancellation policies. Additionally, it emphasizes transparency in marketing practices to prevent misleading information and unfair claims practices.

The bill also includes provisions to regulate insurers' claims settlement practices, prohibiting them from settling claims for less than what a reasonable person would expect based on advertising, altering applications without the insured's knowledge, and failing to inform insureds about the coverage under which a claim payment was made. It addresses issues such as delays in claim investigations and inadequate explanations for claim denials. Furthermore, the Act prohibits violations of the Domestic Abuse Insurance Protection Act, marketing blanket travel insurance as free, and using negative options in soliciting travel insurance, thereby enhancing consumer protection and ensuring fair treatment in the claims process.

Statutes affected:
introduced version: 59A-12-18.1
CT substitute: 59A-16-20
Final Version: 59A-16-20