New Mexico Outlines Insurers' Procedure for Rating Errors and Refunds

New Mexico Outlines Insurers' Procedure for Rating Errors and Refunds

On August 2, 2022, the New Mexico Office of Superintendent of Insurance (OSI) issued Bulletin 2022-014 to all companies covering property and casualty risks located in the state. The Bulletin outlines the procedure for insurance companies to follow when a rating error has been identified. 

Pursuant to the Bulletin, when an insurer finds an error in its data or its calculations used to compute a rate, such that the rates charged to NM consumers were not consistent with what the company has on file with the OSI, the insurer shall notify OSI within 30 days of the discovery. The notice shall disclose the following items:

  • A full description of the rating error that occurred;
  • The number of affected NM policyholders and the total amount of the over- or undercharge (with an estimate if the exact amount is not yet available); and
  • The insurer’s plan of action to prevent such errors in the future.

Additionally, once the refunds have been processed, the insurer shall send a letter to the OSI attesting that the required refunds have been issued, stating the total principal amount of the refunds, the number of affected policyholders, and the number of policyholders who have received the refunds. 

Please direct any questions regarding the Bulletin to Anna Krylova, NMOSI Chief Actuary, at (505) 827-4529, or via e-mail at


Link to Bulletin 2022-014