New Mexico Administrative Code
Title 13 - INSURANCE
Chapter 8 - INSURANCE POLICIES AND RATES
Part 6 - PERSONAL INSURANCE CREDIT INFORMATION
Section 13.8.6.8 - ADVERSE ACTION NOTIFICATION
Universal Citation: 13 NM Admin Code 13.8.6.8
Current through Register Vol. 35, No. 18, September 24, 2024
A. The notification to consumers required by 59A-17A-8 NMSA 1978 and 13.8.6 NMAC shall be in one document, shall address the consumer by name and shall, in addition to the information described in Subsections A and B of 59A-17A-8 NMSA 1978, provide the consumer with the following information:
(1) the name, address,
and telephone number of the consumer reporting agency or third party vendor
that provided the information and how the consumer can obtain a free copy of
his credit report from that entity;
(2) the insurer, and not the consumer
reporting agency or third party vendor, made the decision regarding insurance
and the consumer reporting agency or third party vendor cannot provide the
consumer with the reasons for the adverse action;
(3) if the consumer finds inaccurate or
incomplete information in his credit report and so notifies the consumer
reporting agency or third party vendor, the consumer reporting agency is
required to investigate and correct any information that it determines is
inaccurate or incomplete, or concerning which the accuracy can no longer be
verified;
(4) if the consumer
reporting agency corrects any information in the credit report, the consumer
must instruct the consumer reporting agency to notify the insurer in order for
the insurer to know of this correction;
(5) how the consumer can obtain an annual
free copy of his credit report from each of the major national consumer
reporting agencies, under federal law; and
(6) the life circumstances considered by the
insurer in its extraordinary life circumstances exception policy are those that
have occurred within three years of the date of application for or renewal of
personal insurance coverage and include the following:
(a) an acute or chronic medical condition,
illness, injury or disease;
(b)
divorce;
(c) death of a spouse,
child or parent;
(d) involuntary
loss of employment for more than three consecutive months;
(e) identity theft; or
(f) total or other loss that makes a home
uninhabitable.
B. An insurer may provide the following language in the notice to comply with the requirements of Subsection A of 13.8.6.8 NMAC. A sample form of notice is posted on the public regulation commission, insurance division website, www.nmprc.state.nm.us, at "insurance", then "property and casualty".
(1) Dear
(name of consumer):
(2) We have (describe the specific
adverse action taken by using one of the following:
(a) "given you less than our best
rates",
(b)
"declined to renew your policy",
(c) "declined to offer you a
policy",
(d)
"canceled your policy", or
(e) "restricted the coverage that we
will provide you") due in part to your credit information.
(3) The most important (insert the
words "credit-related" if applicable) factors that negatively affected your
insurance score are:
(a) (list the
most important factor);
(b) (list the second most important
factor, if applicable);
(c) (list the third most important
factor, if applicable); and
(d) (list the fourth most important
factor, if applicable).
(4) Your credit information was obtained from
(name the consumer reporting agency) consumer credit reporting
agency. You have a right to a free copy of your consumer credit report by
contacting them at (list their toll-free number) or at
(list their mail address) within 60 days. Please note that
(name the consumer reporting agency) cannot provide you with
the reasons for our decision regarding insurance with us.
(5) If you dispute information in your
report, contact (name the consumer reporting agency).
(Name the consumer reporting agency) is required to
investigate your dispute and get back to you in less than 60 days. If they find
that the information is inaccurate, incomplete or can't be verified, they are
required to promptly correct your report.
(6) While some errors may have a noticeable
impact on our decision regarding your insurance or on your premium, other
errors may not. (Name the consumer reporting agency) might not
alert us to the error correction unless you tell them to do so. You should also
notify us once your report has been corrected.
(7) If you correct errors with one reporting
agency it may not fix those errors with other reporting agencies. Therefore you
may wish to check your consumer credit report from each of the major national
reporting agencies.
(8) Once a year
you can get a free copy of your report from each of the major reporting
agencies by calling (list toll-free phone number), by visiting
(list website), or by writing to (list mailing
address).
(9) If your
credit information has been adversely impacted by an extraordinary life
circumstance that has occurred within the last 3 years, you may request in
writing that we consider this when using your credit information. These
extraordinary life circumstances include:
(a)
an acute or chronic medical condition, illness, injury or disease;
(b) divorce;
(c) death of a spouse, child or
parent;
(d) involuntary loss of
employment for more than three consecutive months;
(e) identity theft; or
(f) total or other loss that makes your home
uninhabitable.
(10) If
you believe any of these applies to you and has impacted your credit, please
contact (use one of the following: "us", "your insurance agent", "us or
your insurance agent"). We may require you to provide reasonable
documentation of this circumstance and explain how it has negatively affected
your credit.
Disclaimer: These regulations may not be the most recent version. New Mexico may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
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