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Bill

HB 80

PERSONAL INSURANCE CREDIT INFO ACT CHANGES

2025 Regular Session

HB 80 restricts New Mexico insurers' use of consumer credit information in pricing and underwriting personal insurance policies, affecting affordability and industry practices.

action postponed indefinitely
#business&industry #insurance
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Bill Summary · HB 80

Legislative bill overview

HB 80 modifies New Mexico's regulations governing how personal insurance companies can use consumer credit information when underwriting policies or setting premiums. The bill appears designed to restrict or regulate the practice of credit-based insurance scoring, which insurers use to assess risk and determine rates for auto, home, and other personal insurance products.

Why is this important

Credit-based insurance scoring is a widespread industry practice that significantly affects insurance premiums for millions of consumers. How insurers can use credit data directly impacts insurance affordability, particularly for lower-income households and those with credit challenges, and determines what consumer protections exist around this practice.

Potential points of contention

  • Consumer protection vs. business flexibility: Consumer advocates argue credit scoring unfairly penalizes those struggling financially, while insurers contend credit information is predictive of claims and necessary for actuarial accuracy
  • Regulatory scope and enforceability: Disagreement over what restrictions should apply, which insurance products are covered, and how regulators will monitor compliance
  • Economic impact on insurers and consumers: Industry concerns about premium increases if scoring limitations reduce their underwriting tools; consumer concerns about existing unfair pricing practices

Compiled from official sources — confirm details with the bill’s official record.

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