---
title: New Mexico Issues Bulletin Regarding Automatic Rate Escalations
description: N/A
image: https://aaisviews.aaisonline.com/hubfs/Compliance%20Alert/GLC%20Compliance%20Blog%20Features%20v2%20-%20NM.jpg
---

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## Compliance Alerts

## [New Mexico Issues Bulletin Regarding Automatic Rate Escalations](https://aaisviews.aaisonline.com/compliance-alerts/new-mexico-issues-bulletin-regarding-automatic-rate-escalations)

 Apr 17, 2023 / by [AAIS](https://aaisviews.aaisonline.com/compliance-alerts/author/aais)

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On November 1, 2022, the New Mexico Office of Superintendent of Insurance (OSI) issued [Bulletin 2022-020](https://www.osi.state.nm.us/news/bulletins/bulletin-2022-020) regarding automatic property and casualty insurance rate escalations covering risks located in the state of New Mexico.

Specifically, "the OSI has become aware of a practice in rate filings that utilizes automatic rate escalations beyond a reasonably foreseeable period. This usually takes the form of a rating factor that automatically increases the rates by a set percentage, typically on a monthly basis, and often for as long as several years into the future. This factor can result in a sizeable annual rate increase for several years in a row."

The Bulletin establishes that this practice is not allowed by the OSI, and as a result, **the OSI is requiring insurers and advisory organizations that have filed such rating factors in New Mexico to correct and refile the rates in conformance with statutory and rule requirements no later than May 1, 2023.**

Questions regarding Bulletin 2022-020 should be directed to Melissa Robertson, [Melissa.Robertson@state.nm.us](mailto:Melissa.Robertson@state.nm.us), (505) 670-2704.

 

[Link to Bulletin 2022-020](https://www.osi.state.nm.us/news/bulletins/bulletin-2022-020)

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