INSURANCE BAD FAITH DEMAND LETTER – NEW MEXICO

To: [Insurance Company Name, Claims Department Address]
From: [Insured/Claimant Name, via Counsel if applicable]
Date: [DATE]
Claim Number: [CLAIM NUMBER]
Policy Number: [POLICY NUMBER]
Insured: [INSURED NAME]
Date of Loss: [DATE OF LOSS]
Claim Type: [First-Party / UM-UIM / Property]

1. INTRODUCTION

This letter demands immediate payment. Insurer's conduct constitutes bad faith under New Mexico law.

2. FACTUAL BACKGROUND

• Date of Loss: [DATE] — [describe loss]
• Coverage: [$LIMITS]
• Status: [Unpaid / Underpaid / Denied]

3. LEGAL BASIS – NEW MEXICO BAD FAITH

Implied Covenant of Good Faith

New Mexico recognizes first-party bad faith. Dairyland Ins. Co. v. Herman, 954 P.2d 56 (N.M. 1997).

Unfair Claims Settlement Practices (N.M. Stat. Ann. § 59A-16-20)

New Mexico prohibits unfair claims practices.

4. DAMAGES

• Policy benefits: [$AMOUNT]
• Consequential damages
• Punitive damages
• Attorney's fees and costs

5. DEADLINE

Payment due by: [DATE – 30 days]

Signed:
[Name / Attorney]
[Contact Information]