The bill amends the New Mexico Insurance Code to define and prohibit additional unfair claims practices by insurers. It specifies a range of practices that are considered unfair and deceptive, including misrepresentation of policy facts, failure to promptly acknowledge claims, and not attempting to settle claims in good faith. Notably, the bill introduces new provisions that require insurers to provide reasonable explanations for claim denials and to consider inquiries about damage or loss as claims only under certain conditions.

Key insertions in the bill include the requirement for insurers to inform insureds about the coverage under which a claim payment has been made and to avoid requiring unnecessary duplicate submissions of claim information. Additionally, the bill prohibits insurers from considering inquiries about damage or loss as claims if they do not involve deceptive practices and no payment is made. The deletion of certain phrases streamlines the language, making it clearer and more precise in defining unfair practices.

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