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.

Notably, the bill introduces new provisions that specifically address the treatment of inquiries related to damage or loss, stating that such inquiries should not be treated as claims if they do not involve deceptive practices and no payment is made. This aims to clarify the distinction between inquiries and claims, ensuring that insureds are not unfairly penalized for seeking information. Overall, the bill seeks to enhance consumer protection within the insurance industry by establishing clearer standards for claims handling.

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