SENATE JUDICIARY COMMITTEE SUBSTITUTE FOR

SENATE BILL 592

46th legislature - STATE OF NEW MEXICO - second session, 2004

AN ACT

RELATING TO THE PUBLIC PEACE, HEALTH, SAFETY AND WELFARE; PROHIBITING CERTAIN ACTIONS BY MOTOR VEHICLE AND HOMEOWNER INSURERS.

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

     Section 1. A new section of Chapter 59A, Article 32 NMSA 1978 is enacted to read:

     "[NEW MATERIAL] PROHIBITION OF CERTAIN ACTIONS BY AN INSURER OF MOTOR VEHICLES IF AN APPLICANT FOR INSURANCE OR THE INSURED HAS AN UNSATISFACTORY CREDIT REPORT OR DOES NOT HAVE A CREDIT HISTORY.--An insurer shall not:

          A. deny motor vehicle insurance to an applicant because the insurer has received an unsatisfactory credit report for the applicant or because the applicant does not have a credit history;

          B. initially charge a higher premium for a new motor vehicle insurance policy because the insurer has received an unsatisfactory credit report on the insured or because the insured does not have a credit history;

          C. increase the premium for a motor vehicle insurance policy because the insurer has received an unsatisfactory credit report on the insured if the policy is in good standing and the payment of the premium is current; or

          D. cancel a motor vehicle insurance policy because the insurer has received an unsatisfactory credit report on the insured if the policy is in good standing and the payment of the premium is current."

     Section 2. A new section of the New Mexico Insurance Code is enacted to read:

     "[NEW MATERIAL] PROHIBITION OF CERTAIN ACTIONS BY AN INSURER AGAINST A HOMEOWNER WHO HAS AN UNSATISFACTORY CREDIT REPORT OR DOES NOT HAVE A CREDIT HISTORY.--An insurer shall not:

          A. deny homeowner's insurance to an applicant because the insurer has received an unsatisfactory credit report for the applicant or because the applicant does not have a credit history;

          B. initially charge a higher premium for a homeowner's insurance policy because the insurer has received an unsatisfactory credit report on the insured or because the insured does not have a credit history;

          C. increase the premium for a homeowner's insurance policy because the insurer has received an unsatisfactory credit report on the insured if the policy is in good standing and the payment of the premium is current; or

          D. cancel a homeowner's insurance policy because the insurer has received an unsatisfactory credit report on the insured if the policy is in good standing and the payment of the premium is current."

     Section 3. EFFECTIVE DATE.--The effective date of the provisions of this act is July 1, 2004.

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