This bill introduces a new section to the New Mexico Insurance Code that establishes requirements for insurers using wildfire risk models in their underwriting processes for homeowners insurance. Insurers must provide detailed information about the models they use, including their impact on rates and how they account for statewide mitigation activities. The bill mandates that insurers incorporate property-specific and community-level mitigation actions into their models or provide discounts to policyholders who demonstrate such actions. Additionally, insurers are required to make information about available discounts and the process for appealing wildfire risk scores readily accessible on their websites.

The bill also outlines the obligations of insurers to communicate wildfire risk scores and classifications to policyholders and applicants, including a plain-language explanation of the scores and the factors influencing them. Insurers must notify policyholders of their rights to appeal inaccurate scores and provide a timeline for responding to appeals. The provisions of this act will apply to insurance filings and policy applications after June 30, 2026, with an effective date of July 1, 2026.