46th legislature - STATE OF NEW MEXICO - first session, 2003

RELATING TO INSURANCE; PROHIBITING HOMEOWNER'S CASUALTY INSURERS FROM RAISING RATES, CANCELING A POLICY OR REFUSING TO RENEW A POLICY SOLELY BECAUSE A HOMEOWNER HAS MADE CERTAIN CLAIMS PURSUANT TO THE POLICY.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:

Section 1. A new section of the New Mexico Insurance Code is enacted to read:

"[NEW MATERIAL] HOMEOWNER'S CASUALTY INSURANCE--RATE INCREASE, POLICY CANCELLATION--FAILURE TO RENEW.--

A. Except as provided in Subsection C or D of this section, the rates of an insurer of homeowner's casualty shall not provide for an increase in the premium based solely upon the fact that the homeowner has made a claim pursuant to the policy.

B. Except as provided in Subsection C or D of this section, an insurer of homeowner's casualty shall not cancel or fail to renew a homeowner's insurance policy solely because the homeowner has made a claim pursuant to the policy.

C. The provisions of Subsections A and B of this section do not apply if a claim is made by a homeowner pursuant to liability insurance coverage provided in a homeowner's casualty insurance policy.

D. The provisions of Subsections A and B of this section do not apply if other factors exist, exclusive of the claim made by the homeowner, that allow for a premium increase or the cancellation of or failure to renew an insurance policy under the Insurance Code or rules adopted under the Insurance Code."