SENATE BILL 72

49th legislature - STATE OF NEW MEXICO - second session, 2010

INTRODUCED BY

Timothy M. Keller

AN ACT

RELATING TO INSURANCE; PROHIBITING INSURERS OF MOTOR VEHICLES FROM USING A CREDIT REPORT OR OTHER CREDIT INFORMATION AS A BASIS TO UNDERWRITE, RATE OR RENEW PERSONAL MOTOR VEHICLE INSURANCE COVERAGE OR ELIGIBILITY; REPEALING A SECTION OF THE NEW MEXICO INSURANCE CODE.

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] USE OF CERTAIN REPORTS TO CALCULATE, UNDERWRITE, RATE OR RENEW PERSONAL MOTOR VEHICLE INSURANCE COVERAGE OR ELIGIBILITY PROHIBITED.--

          A. An insurer shall not use a credit report or other credit information to calculate an insurance score to underwrite, rate or renew personal motor vehicle insurance coverage.

          B. An insurer that has used a credit report or other credit information to calculate, underwrite, rate or renew personal motor vehicle insurance shall cease use of a credit report or other credit information as of the effective date of this law, and the insurer shall notify its insurance clients that credit reports no longer will be used to calculate, underwrite, rate or renew a personal motor vehicle insurance policy."

     Section 2. REPEAL.--Sections 59A-17A-7 and 59A-17A-8 NMSA 1978 (being Laws 2005, Chapter 275, Sections 7 and 8) are repealed.

     Section 3. EFFECTIVE DATE.--The effective date of the provisions of this act is July 1, 2010.

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