The New Mexico Office of Superintendent of Insurance published a bulletin clarifying the criteria under which an insurer may offer value-added products and services to an insurance contract.

A value-added product or service can be offered at no or reduced cost, even if the product is not mentioned in the insurance contract, if the product relates to the insurance coverage, is offered at a reasonable cost in comparison to the insured’s premium, and if its availability is based on objective evidence and its offering is not unfairly discriminatory.

The product or service must also be primarily designed to provide loss control, reduce claim settlement costs, monitor or access risk, enhance health, enhance financial wellness, provide post-loss services, incentivize behavioral changes to improve the health of an insured, assist in the administration of employee or retiree benefit insurance coverage, or provide education about liability risks or risk of loss to persons or property.