ADDITIONAL UNFAIR CLAIMS PRACTICES

SB 403 would amend New Mexico's insurance code to prohibit insurers from treating an insured's inquiry about damage or loss as a formal claim when the inquiry isn't covered by the policy, no payment is made, and the insured didn't act deceptively. This specifically targets insurers who might pressure policyholders over non-covered issues by labeling them as claims. The bill directly affects New Mexico policyholders and insurers by preventing this practice, requiring insurers to stop treating uncovered inquiries as claims. The bill was introduced in 2025 but was postponed indefinitely by the Senate on June 3, 2025, so it has not become law.