IT IS A PROHIBITED UNFAIR CLAIMS PRACTICE FOR PROPERTY OR HOMEOWNER’S INSURERS AND PRODUCERS TO TREAT AN APPLICANT’S OR INSURED’S INQUIRY RELATING TO DAMAGE OR LOSS AS A CLAIM WHEN THE FACTS OF THE INQUIRY ARE NOT COVERED BY THE POLICY WHERE CERTAIN ELEMENTS ARE MET

THIS BULLETIN is effective immediately and is issued pursuant to Sections 59A-2-8, 59A-2-10, and 59A-4-3 NMSA 1978 and 13.1.2.9 NMAC.

The Office of Superintendent of Insurance expects all property and casualty insurance companies to act in good faith and to use fair claims practices that comply with state law. The purpose of this Bulletin is to advise insurers that the Insurance Code’s Unfair Claims Practices law, Section 59A-16-20 NMSA 1978, was amended in 2025 with an effective date of June 20, 2025.

Article 16 of the Insurance Code [NMSA 1978, Sections 59A-16-1 to 59A-16-30 (2025)] regulates trade practices in the insurance business and related businesses by defining practices in this state which constitute unfair methods of competition or unfair or deceptive acts or practices. See NMSA 1978, Section 59A-16-2. Effective on June 30, 2025, Subsection P was added as a new prohibited unfair claims practice.

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IT IS A PROHIBITED UNFAIR CLAIMS PRACTICE FOR PROPERTY OR HOMEOWNER’S INSURERS AND PRODUCERS TO TREAT AN APPLICANT’S OR INSURED’S INQUIRY RELATING TO DAMAGE OR LOSS AS A CLAIM WHEN THE FACTS OF THE INQUIRY ARE NOT COVERED BY THE POLICY WHERE CERTAIN ELEMENTS ARE MET