NM| The New Mexico Office of Superintendent of Insurance issued Bulletin 2025-010, effective immediately, notifying all property and homeowners insurance carriers that treating an applicant or insured’s inquiry regarding damage or loss as a claim—when no payment is made, the facts are not covered by the policy, and no deceptive practices are involved—is now classified as a prohibited unfair claims practice. This change aligns with a 2025 amendment to Section 59A-16-20 NMSA 1978, with the new law effective June 30, 2025, and mandates equal treatment of insureds and applicants regarding inquiries that do not result in actual claims. The bulletin specifically prohibits insurers from penalizing applicants or policyholders by raising premiums, denying coverage, or imposing any disadvantage in response to such inquiries.
Key Points:
- Insurers cannot treat non-covered inquiries or requests with zero payment as claims or prior losses for applicants or insureds.
- The prohibition applies if there is no payout and the inquiry involves no deceptive practice by the applicant or insured.
- Any penalty, such as premium increases or denials of coverage based on these inquiries, is considered an unfair claims practice under the revised law.