The bill amends the New Mexico Insurance Code to define and prohibit an additional unfair claims practice by insurers. It specifically outlines various practices that are deemed unfair and deceptive, including misrepresentation of policy facts, failure to promptly acknowledge claims, and not attempting to settle claims in good faith. The bill also introduces new provisions that clarify the responsibilities of insurers regarding claims processing and communication with insureds.

Notably, the bill adds new language that prohibits insurers from considering an inquiry about damage or loss as a claim if it does not involve payment or deceptive practices. Additionally, it specifies that insurers must not require both a preliminary claim report and formal proof of loss forms if they contain substantially the same information. The amendments aim to enhance consumer protection and ensure fair treatment of insured individuals in the claims process.

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