New Mexico: Division of Insurance Issues Bulletin on Required Rate Disclosures Upon Policyholder Inquiry

The New Mexico Division of Insurance has issued Bulletin No. 2007-004, clarifying the basic requirements carriers must comply with when addressing a consumer’s inquiry as to a premium change in a homeowners, automobile, or personal lines insurance policy.

Current law states that an insurer who receives a written or email request from a policyholder for a detailed explanation of the reasons why a premium has changed or is about to change will provide a detailed, written explanation of the premium change within 10 business days of receiving the request. A copy of the written explanation to the policyholder must be sent to the commissioner.

According to the bulletin, “[t]he explanation shall include a list that itemizes the rating elements that contributed to the premium change and provide the dollar amount of premium change attributable to each item. Items that should be listed and quantified separately whenever possible include the effects of insurance credit scores, of claims incurred during the expiring policy term and of changes in renewal coverage (including inflationary increases in insured property values).”

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

Posted: Tuesday, June 19, 2007 12:00:00 AM. Modified: Tuesday, June 19, 2007 11:16:05 AM.

(317) 875-5250 - Indianapolis | (202) 628-1558 - Washington, D.C.

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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.