The bill amends the New Mexico Insurance Code to define and prohibit an additional unfair claims practice by insurers. It outlines a series of practices that are considered unfair and deceptive, which include misrepresenting policy facts, failing to acknowledge claims promptly, and not providing reasonable explanations for claim denials. The bill emphasizes the importance of timely and fair treatment of insureds, particularly in the context of catastrophic claims and the settlement process.

Key insertions in the bill include provisions that specifically address the failure to settle catastrophic claims within a specified timeframe and the requirement for insurers to provide explanations for claim denials. Additionally, the bill prohibits practices that compel insureds to litigate for amounts due under their policies or that treat inquiries about damage or loss as claims when they do not involve deceptive practices. Overall, the bill aims to enhance consumer protection within the insurance industry by clearly defining and prohibiting these unfair practices.

Statutes affected:
introduced version: 59A-16-20
Final Version: 59A-16-20