New Mexico: Rate Modernization Bill Passes Out of Senate

On Feb. 23, SB 483, the "File and Use" rate modernization bill, passed out of the Senate on a 29-8 vote. The bill is now in the House Business and Industry Committee for public testimony. The bill is expected to be fast tracked because the 2007 New Mexico legislative session is set to adjourn on or about March 17.

"We are pleased to see the state Legislature consider this meaningful rate modernization bill,” said Christian J. Rataj, NAMIC state affairs manager. “States that have adopted 'File and Use' rate filing schemes have seen enhanced market competition and the development of a regulatory environment that fosters the introduction of new insurance products for consumers."

According to Rataj, SB 483 will change the "Prior Approval" system currently in effect for property/casualty lines of insurance to a "File and Use" system. The bill is a comprehensive rate modernization bill that recognizes that the state's insurance industry is healthy and competitive. It is being actively supported by Morris Chavez, the state’s new superintendent of insurance, as being consumer protection-oriented legislation that will facilitate market competition for consumers and encourage new insurance carriers to enter the New Mexico insurance marketplace.

Direct questions to NAMIC State Affairs Manager Christian J. Rataj.

Posted: Tuesday, March 06, 2007 12:00:00 AM.

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We are 1,400 property/casualty insurance companies serving more than 135 million auto, home and business policyholders, with more than $196 billion in premiums accounting for 50 percent of the automobile/homeowners market and 31 percent of the business insurance market. We are the largest and most diverse property/casualty trade association in the country, with regional and local mutual insurance companies on main streets across America joining many of the country’s largest national insurers who also call NAMIC their home. More than 200,000 people are employed by NAMIC members.