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 timely explanations for claim denials. The bill specifically adds new provisions that 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 by the insurer.

Additionally, the bill emphasizes the importance of timely settlements, particularly for catastrophic claims, and prohibits practices that compel insured individuals to resort to litigation to recover amounts due under their policies. The amendments aim to enhance consumer protection by ensuring that insurers adhere to fair practices in handling claims and providing clear communication to insured individuals.

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