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 various policy types, including individual, group, or blanket policies. The Act outlines the responsibilities of limited lines travel insurance producers and travel retailers, emphasizing the need for training, disclosure of policy terms, and the maintenance of a register of travel retailers. Additionally, it prohibits certain marketing and administrative practices to ensure consumers receive clear and accurate information about their coverage options.

The bill also enhances consumer protection by prohibiting insurers from settling claims for less than what a reasonable person would expect based on advertising, settling claims based on altered applications without the insured's knowledge, and failing to inform insureds about the coverage under which claims have been paid. It addresses issues such as delays in claim investigations and the lack of timely explanations for claim denials. Furthermore, the Act specifically prohibits marketing blanket travel insurance as free and restricts the use of negative options in the solicitation of travel insurance, aiming to promote transparency and fairness in the insurance process to protect consumers from deceptive practices.

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