Insurance Bad Faith Demand Letter - New Mexico

INSURANCE BAD FAITH DEMAND LETTER

State of New Mexico

[LAW FIRM LETTERHEAD]

PRIVILEGED AND CONFIDENTIAL
SETTLEMENT COMMUNICATION — FOR RESOLUTION PURPOSES ONLY
PROTECTED UNDER NMRA 11-408 AND FED. R. EVID. 408

VIA CERTIFIED MAIL, RETURN RECEIPT REQUESTED — ARTICLE NO. [TRACKING_NUMBER]
AND VIA EMAIL TO: [ADJUSTER_EMAIL]
AND VIA EMAIL TO: [CARRIER_LEGAL_DEPARTMENT_EMAIL]

Date: [__/__/____]

[INSURANCE_COMPANY_NAME]
[CLAIMS_DEPARTMENT_ADDRESS]
[CITY], [STATE] [ZIP]

Attention: [ADJUSTER_NAME], [ADJUSTER_TITLE]
AND: [CLAIMS_MANAGER_NAME], [CLAIMS_MANAGER_TITLE]
NM Adjuster License No.: [ADJUSTER_LICENSE_NUMBER]

Re: FORMAL BAD FAITH DEMAND — NEW MEXICO STATUTES § 59A-16-20 AND § 59A-16-30 AND COMMON LAW — TIME-LIMITED

Dear [ADJUSTER_NAME] and [CLAIMS_MANAGER_NAME]:

I. INTRODUCTION — A FORMAL BAD FAITH DEMAND UNDER NEW MEXICO LAW

This firm represents [CLIENT_NAME] ("our client") in connection with the above-referenced insurance claim arising under the laws of the State of New Mexico. This letter constitutes a formal demand for payment of all benefits wrongfully withheld and serves as specific, written notice of [INSURANCE_COMPANY_NAME]'s ("[CARRIER_SHORT_NAME]") bad faith conduct in violation of NMSA 1978 §§ 59A-16-20 and 59A-16-30 and New Mexico common law.

New Mexico stands apart from most states in the strength of its bad faith framework. Unlike many jurisdictions, New Mexico law grants every insured a direct private right of action to enforce unfair claims practices violations — without first filing a regulatory complaint or waiting for the Superintendent of Insurance to act. NMSA 1978 § 59A-16-30. Our client may sue [CARRIER_SHORT_NAME] today, in district court, for actual damages including consequential damages and emotional distress, plus mandatory attorney's fees upon proof of willful violation. New Mexico also imposes no statutory cap on punitive damages in insurance bad faith cases, and awards prejudgment interest at 15% per year on judgments involving bad faith or tortious conduct. NMSA 1978 § 56-8-4(B).

[CARRIER_SHORT_NAME]'s conduct in this matter — documented in detail below — exemplifies precisely the practices that New Mexico's legislature made unlawful and that New Mexico courts have consistently punished.

This demand expires at 5:00 p.m. Mountain Time on [__/__/____]. [CARRIER_SHORT_NAME] must tender full payment of $[DEMAND_AMOUNT] and resolve all bad faith claims arising from this file by that deadline. After that date, this demand is withdrawn, and our client will pursue all available remedies in New Mexico district court without further notice.

II. NEW MEXICO BAD FAITH LAW — THE COMPLETE FRAMEWORK

A. Common Law First-Party Bad Faith — Sloan v. State Farm

The New Mexico Supreme Court established the controlling standard for first-party bad faith in Sloan v. State Farm Mut. Auto. Ins. Co., 2004-NMSC-004, ¶ 19, 135 N.M. 106, 85 P.3d 230:

"Bad faith in the first-party context occurs when the insurer makes a frivolous or unfounded refusal to pay the proceeds of a policy."

A claim is "fairly debatable" — and thus not actionable as bad faith — only when reasonable minds could genuinely differ as to the insurer's coverage obligation. The insurer's subjective belief that the claim is disputable is not sufficient. The insurer must demonstrate an objectively reasonable basis for its position. Where no reasonable basis exists, the refusal to pay is bad faith.

Additionally, where the insurer's bad faith rises to the level of recklessness, wantonness, malice, or willful indifference to the insured's rights, the jury may award punitive damages. Sloan, 2004-NMSC-004, ¶¶ 30–35. The determination of whether punitive damages are warranted is ordinarily a question for the jury, not the court.

B. Common Law Third-Party Bad Faith — Failure to Settle

For liability claims, New Mexico imposes a duty of honest and fair balancing of interests between the insurer and its insured when evaluating settlement demands within policy limits. Sloan, 2004-NMSC-004, ¶ 18. An insurer that places its own financial interests above its insured's exposure — refusing a reasonable limits demand and exposing the insured to an excess judgment — commits bad faith. The standard requires the insurer to give the insured's interests at least equal (and arguably greater) consideration than its own.

C. Statutory Unfair Claims Practices — NMSA 1978 § 59A-16-20

New Mexico's Insurance Code codifies specific prohibited unfair claims practices at NMSA 1978 § 59A-16-20. The statute targets conduct "knowingly committed or performed with such frequency as to indicate a general business practice." The following prohibited acts are particularly relevant here:

D. Private Right of Action — NMSA 1978 § 59A-16-30

New Mexico's private enforcement mechanism is exceptional among the states. NMSA 1978 § 59A-16-30 provides:

"Any person covered by [Article 16] who has suffered damages as a result of a violation of that article by an insurer or agent is granted a right to bring an action in district court to recover actual damages."

Key features of § 59A-16-30:

• Actual damages: Full compensatory damages, including consequential damages and emotional distress
• Mandatory attorney's fees: The court shall award attorney's fees to our client if [CARRIER_SHORT_NAME] willfully engaged in the unfair claims practice violation — § 59A-16-30(B)
• No regulatory exhaustion required: Our client need not file a complaint with the OSI before suing — the right is direct
• No reliance required: Our client need not prove reliance on [CARRIER_SHORT_NAME]'s misrepresentations to recover under the Act

E. New Mexico Unfair Practices Act — NMSA 1978 § 57-12-1 et seq.

Where [CARRIER_SHORT_NAME]'s conduct constitutes an unfair or deceptive trade practice in connection with the sale or performance of the insurance contract, our client may seek additional relief under the New Mexico Unfair Practices Act, including:

• Injunctive relief to stop the prohibited conduct
• Treble damages (actual damages × 3) — NMSA 1978 § 57-12-10
• Attorney's fees and costs

F. Punitive Damages — No Cap Under New Mexico Law

New Mexico imposes no statutory cap on punitive damages in insurance bad faith cases. This is not a theoretical point. A Santa Fe jury returned a $36 million verdict in an insurance bad faith case in 2023. New Mexico juries have historically been willing to impose substantial punitive awards when they find that insurers treated their policyholders as adversaries.

The standard for punitive damages in New Mexico insurance cases requires showing that the insurer's conduct was reckless, wanton, malicious, fraudulent, or reflected willful indifference to the insured's rights. Sloan, 2004-NMSC-004, ¶ 32. This is a lower threshold than "intentional" wrongdoing — recklessness alone suffices.

G. Prejudgment Interest at 15% — NMSA 1978 § 56-8-4(B)

In money judgments involving tortious conduct, bad faith, or intentional or willful acts, New Mexico law mandates prejudgment interest at 15% per year under NMSA 1978 § 56-8-4(B). This rate:

• Begins to accrue from the date the amount was due (date of loss or date benefits were payable)
• Applies to all compensatory damages, not just contract damages
• Is among the highest prejudgment interest rates in the United States

Illustration: On a $500,000 case, each year of unnecessary delay costs [CARRIER_SHORT_NAME] $75,000 in prejudgment interest alone, compounded annually from the date of loss. Delay is not a neutral strategy in New Mexico.

H. Insurer's Duty of Disclosure — Salas v. Mountain States Mutual

The New Mexico Supreme Court held in Salas v. Mountain States Mut. Cas. Co., 2009-NMSC-005, that where an insurer has actual knowledge of a claim it is obligated to investigate or pay, it has an affirmative duty to disclose to the insured:

• The existence of applicable coverage
• The terms and conditions governing that coverage, including any exclusions or consent requirements
• The insured's rights and obligations under the policy

Failure to disclose material policy terms that the insurer knows to be relevant to the insured's claim constitutes bad faith and equitably estops the insurer from enforcing those terms against the insured.

III. POLICY INFORMATION AND COVERAGE ANALYSIS

A. Policy Details

B. Coverage Analysis and [CARRIER_SHORT_NAME]'s Acknowledged Obligations

The policy provides coverage for [DESCRIBE_COVERED_CLAIM — e.g., bodily injury arising from a covered automobile accident / property damage from a covered peril / wrongful death arising from the insured's liability].

[CARRIER_SHORT_NAME] [☐ acknowledged coverage by [DESCRIBE_ACKNOWLEDGMENT] on [__/__/____] / ☐ issued a reservation of rights letter on [__/__/____] / ☐ has not formally taken a coverage position despite [____] days having elapsed since the date of loss].

Having [accepted coverage / undertaken a defense / issued partial payment], [CARRIER_SHORT_NAME] is fully obligated under New Mexico law to:

☐ Conduct a thorough, fair, and objective investigation without unreasonable delay
☐ Evaluate all aspects of this claim in good faith, giving the insured's interests at least equal consideration to its own
☐ Promptly pay all amounts owed under the policy upon resolution of any legitimate dispute
☐ Communicate honestly and completely with our client, including affirmatively disclosing coverage terms — Salas
☐ Provide a prompt, specific, policy-based explanation for any denial or reduction of benefits — § 59A-16-20(I)
☐ Refrain from compelling our client to litigate amounts that are not genuinely disputed — § 59A-16-20(G)

IV. FACTUAL BACKGROUND — THE CLAIM AND ITS HISTORY

A. The Underlying Loss or Claim

On [__/__/____], [DESCRIBE_IN_DETAIL: the underlying event giving rise to the insurance claim — the accident, the loss, the liability event, including all relevant factual details about how it occurred, where, who was involved, and what injuries or damages resulted].

[ADDITIONAL_FACTUAL_DETAIL — medical diagnoses, property damage descriptions, liability exposure summary, etc.]

B. Chronological Timeline of Bad Faith Conduct

The following timeline documents [CARRIER_SHORT_NAME]'s progressive course of bad faith conduct:

To date, [____] days have elapsed since the date of loss. [CARRIER_SHORT_NAME] has paid $[AMOUNT_PAID] of the $[TOTAL_OWED] owed, leaving $[BALANCE_OWED] unpaid without legitimate justification.

V. SPECIFIC ACTS OF BAD FAITH

[CARRIER_SHORT_NAME]'s handling of this claim constitutes bad faith under NMSA 1978 § 59A-16-20 and New Mexico common law in the following specific respects:

A. Unreasonable Delay in Investigation and Payment — § 59A-16-20(B), (C)

[CARRIER_SHORT_NAME] has unreasonably delayed the investigation and payment of this claim:

• [DELAY_1]: Despite receiving our client's complete proof of loss and supporting documentation on [__/__/____], [CARRIER_SHORT_NAME] did not respond for [____] days — a period far exceeding what New Mexico law requires as "reasonably prompt." § 59A-16-20(B).
• [DELAY_2]: [CARRIER_SHORT_NAME] requested the same documentation multiple times — on [__/__/____], [__/__/____], and [__/__/____] — despite having received it each time, a pattern indicating either gross disorganization or a deliberate delay tactic. § 59A-16-20(C).
• [DELAY_3]: [DESCRIBE_ADDITIONAL_SPECIFIC_DELAY]

B. Inadequate Investigation — § 59A-16-20(C), (D)

[CARRIER_SHORT_NAME] failed to conduct the thorough and objective investigation required by New Mexico law:

• [INVESTIGATION_FAILURE_1]: [DESCRIBE: e.g., "The assigned adjuster conducted only a drive-by inspection and never entered the property, despite documentation of interior damage"]
• [INVESTIGATION_FAILURE_2]: [DESCRIBE: e.g., "[CARRIER_SHORT_NAME]'s independent medical examiner spent only 12 minutes examining our client before issuing a report contradicting the treating physician's diagnosis of two years"]
• [INVESTIGATION_FAILURE_3]: [DESCRIBE: e.g., "[CARRIER_SHORT_NAME] never requested or reviewed the traffic crash report, eyewitness statements, or surveillance footage that conclusively establish the tortfeasor's liability"]

C. Grossly Inadequate Settlement Offers — § 59A-16-20(E), (G), (H)

[CARRIER_SHORT_NAME]'s settlement positions have been grossly inadequate and not made in good faith:

No reasonable person in our client's position would accept [CARRIER_SHORT_NAME]'s offer of $[LATEST_OFFER] in full and final settlement. Under § 59A-16-20(H), [CARRIER_SHORT_NAME] may not settle for less than a reasonable person would believe the insured is entitled to receive.

D. Misrepresentation of Policy Provisions — § 59A-16-20(A)

[CARRIER_SHORT_NAME] has misrepresented the following policy provisions:

• [MISREPRESENTATION_1]: On [__/__/____], [ADJUSTER_NAME] told our client that [DESCRIBE_MISREPRESENTATION_1]. In fact, Policy Section [____] provides: "[ACTUAL_POLICY_LANGUAGE]."
• [MISREPRESENTATION_2]: [CARRIER_SHORT_NAME]'s denial letter of [__/__/____] cites Policy Exclusion [____] as the basis for denial, but that exclusion by its own terms applies only to [ACTUAL_SCOPE_OF_EXCLUSION] — not to the covered peril at issue here.
• [MISREPRESENTATION_3]: [DESCRIBE_ADDITIONAL_MISREPRESENTATION]

E. Failure to Disclose Coverage Terms — Salas Violation

[CARRIER_SHORT_NAME] had actual knowledge on [__/__/____] of our client's entitlement to [DESCRIBE_COVERAGE]. Despite that knowledge, [CARRIER_SHORT_NAME] failed to affirmatively disclose [DESCRIBE_UNDISCLOSED_COVERAGE_TERM OR OBLIGATION]. Under Salas v. Mountain States Mut. Cas. Co., 2009-NMSC-005, this failure of disclosure constitutes bad faith and estops [CARRIER_SHORT_NAME] from enforcing the undisclosed provision against our client.

F. Failure to Communicate — § 59A-16-20(B), (I)

[CARRIER_SHORT_NAME] failed to communicate with our client as required by New Mexico law:

• Our firm's letters of [__/__/____], [__/__/____], and [__/__/____] went unanswered for [____], [____], and [____] days respectively
• [CARRIER_SHORT_NAME] has not provided a written explanation of the basis for its [denial / underpayment / delay] specifically grounded in the policy language and applicable facts as required by § 59A-16-20(I)
• [DESCRIBE_ADDITIONAL_COMMUNICATION_FAILURE]

G. Compelling Litigation Through Unreasonable Conduct — § 59A-16-20(G)

[CARRIER_SHORT_NAME]'s pattern of [delay / inadequate offers / unjustified denials] has left our client with no choice but to retain counsel and threaten litigation to recover amounts plainly owed under the policy. This is the exact conduct that § 59A-16-20(G) prohibits. The [____]-day gap between [CARRIER_SHORT_NAME]'s offer of $[OFFER_AMOUNT] and the documented value of $[DOCUMENTED_VALUE] demonstrates that [CARRIER_SHORT_NAME] never intended to pay fairly — compelling this letter.

H. Catastrophic Claim Violation (If Applicable) — § 59A-16-20(F)

[INCLUDE IF APPLICABLE — E.G., DECLARED CATASTROPHE, MAJOR WILDFIRE, FEDERALLY DECLARED DISASTER:]

This claim arose from a declared catastrophic event: [NAME_OF_EVENT / FEMA Disaster Declaration No. [____]]. [CARRIER_SHORT_NAME] assigned Catastrophic Claim No. [____] on [__/__/____]. Under NMSA 1978 § 59A-16-20(F), [CARRIER_SHORT_NAME] was required to settle this claim within ninety (90) days — by [__/__/____]. That deadline passed [____] days ago. [CARRIER_SHORT_NAME] has violated § 59A-16-20(F).

VI. DAMAGES

A. Contract Damages — Policy Benefits Owed

B. Consequential Damages — Foreseeable Harm Caused by Bad Faith

New Mexico bad faith law recognizes consequential damages — foreseeable harms beyond the policy benefits themselves that were caused by [CARRIER_SHORT_NAME]'s wrongful conduct:

C. Emotional Distress Damages

New Mexico bad faith law recognizes emotional distress as a recoverable element of compensatory damages where the insurer's conduct is egregious. Sloan, 2004-NMSC-004. Our client has experienced significant emotional distress as a direct result of [CARRIER_SHORT_NAME]'s bad faith conduct:

[DESCRIBE IN DETAIL: specific emotional distress, anxiety, loss of sleep, impact on daily life, any medical treatment sought for stress/anxiety, etc. Be specific and concrete — vague allegations of "stress" are insufficient.]

Our client's emotional distress damages are valued at $[EMOTIONAL_DISTRESS_AMOUNT].

D. Punitive Damages

[CARRIER_SHORT_NAME]'s conduct meets New Mexico's standard for punitive damages. Specifically, [CARRIER_SHORT_NAME]'s conduct was:

☐ Reckless — [CARRIER_SHORT_NAME] [DESCRIBE: e.g., assigned this claim to an adjuster with no training in this type of loss and ignored red flags for months]
☐ Wanton — [CARRIER_SHORT_NAME] [DESCRIBE: e.g., knowingly offered $[AMOUNT] when its own reserve reflects a value of $[RESERVE_AMOUNT], demonstrating awareness that its offer was inadequate]
☐ Malicious — [DESCRIBE: e.g., evidence in the claim file indicates a systematic practice of delay on similar claims]
☐ Willful indifference to our client's rights — [CARRIER_SHORT_NAME] received documented evidence of our client's damages and ignored it without explanation for [____] months

Punitive damages in an appropriate multiple of the compensatory damages here would be $[PUNITIVE_DAMAGES_ESTIMATE]. New Mexico imposes no statutory limit on this amount.

E. Prejudgment Interest — 15% Per Year

Under NMSA 1978 § 56-8-4(B), our client is entitled to prejudgment interest at 15% per year from the date the benefits were due:

F. Statutory Penalties and Attorney's Fees

Under NMSA 1978 § 59A-16-30(B), if the court finds that [CARRIER_SHORT_NAME] willfully engaged in unfair claims practice violations, attorney's fees are mandatory. Based on the pattern of conduct documented above, attorney's fees through trial are estimated at $[ATTORNEY_FEE_ESTIMATE].

Under NMSA 1978 § 57-12-10 (Unfair Practices Act), treble damages of up to $[TREBLE_DAMAGES_ESTIMATE] (3 × $[ACTUAL_DAMAGES]) may be awarded.

G. Total Damages Summary

VII. FORMAL DEMAND

A. Monetary Demand

[CARRIER_SHORT_NAME] must pay the total sum of $[SETTLEMENT_DEMAND_AMOUNT] by the deadline stated below:

Note: This demand does not include punitive damages or attorney's fees, which will be sought in full if litigation becomes necessary.

B. Non-Monetary Conditions

In addition to the monetary payment, our client requires:

☐ A full and complete mutual release covering all claims arising from Policy No. [POLICY_NUMBER] and Claim No. [CLAIM_NUMBER]
☐ A confidentiality agreement regarding settlement terms (optional — negotiable)
☐ Written correction or removal of any adverse information reported to CLUE, ISO ClaimSearch, or any insurance industry database as a result of this claim's handling
☐ Written confirmation that the settlement is not conditioned on our client's release of any regulatory complaint rights

VIII. TIME-LIMITED NATURE OF THIS DEMAND

THIS DEMAND EXPIRES AT 5:00 P.M. MOUNTAIN TIME ON [__/__/____].

This is a time-limited demand. The deadline is not arbitrary — it reflects our client's need for certainty and our assessment of [CARRIER_SHORT_NAME]'s bad faith exposure. This demand will not be extended absent extraordinary circumstances.

Consequences of Non-Acceptance

If [CARRIER_SHORT_NAME] fails to unconditionally accept this demand by the deadline:

1. Suit will be filed immediately in [COUNTY] County District Court, Second [or appropriate] Judicial District, State of New Mexico, seeking:
   - All unpaid policy benefits — NMSA 1978 § 59A-16-30
   - Full consequential and emotional distress damages
   - Punitive damages in an amount to be determined by the jury (no statutory cap)
   - Prejudgment interest at 15% per year from the date due — NMSA 1978 § 56-8-4(B)
   - Mandatory attorney's fees upon proof of willful violation — NMSA 1978 § 59A-16-30(B)
   - Treble damages under New Mexico Unfair Practices Act — NMSA 1978 § 57-12-10
   - All costs of litigation

2. Regulatory complaints will be filed with:
   - New Mexico Office of the Superintendent of Insurance (OSI)
   1120 Paseo de Peralta, Santa Fe, NM 87501
   P.O. Box 1689, Santa Fe, NM 87504-1689
   Phone: (505) 827-4601
   Online: osi.state.nm.us

• National Association of Insurance Commissioners (NAIC)

3. This demand is withdrawn in its entirety; [CARRIER_SHORT_NAME] will face full litigation exposure

IX. DOCUMENT PRESERVATION NOTICE — LITIGATION HOLD

This letter constitutes a formal litigation hold notice requiring [CARRIER_SHORT_NAME] to immediately suspend any document retention schedule and preserve all documents and ESI related to this claim and [CARRIER_SHORT_NAME]'s claims handling practices, including:

☐ Complete claim file in all forms (paper and electronic, all versions and working drafts)
☐ All adjuster notes, diaries, activity logs, and contact records
☐ All internal communications regarding this claim (email, instant message, Teams/Slack, voicemail)
☐ Reserve setting and all reserve change documentation, with reasons for each change
☐ Supervisor and management review, approval, and escalation records
☐ Claims handling guidelines, manuals, procedures, and best practices
☐ Adjuster training materials relevant to this type of claim
☐ Quality assurance, audit, and peer review notes
☐ All correspondence to/from our client and this firm
☐ Third-party expert, engineering, medical, and investigative reports (all versions)
☐ Recorded statements and transcripts
☐ Photographs, videos, drone footage, and digital media
☐ ISO ClaimSearch, NICB, and CLUE inquiry and reporting records
☐ Any internal claims scoring, algorithm, or decision-support tools used in evaluating this claim
☐ Documents reflecting [CARRIER_SHORT_NAME]'s financial reserves for this claim
☐ Any documents reflecting [CARRIER_SHORT_NAME]'s handling of similar claims (relevant to pattern-of-conduct evidence for punitive damages)

Destruction of any of the above materials after receipt of this letter will constitute spoliation of evidence, subject [CARRIER_SHORT_NAME] to adverse jury instructions under New Mexico law, and support an independent motion for sanctions.

X. RESERVATION OF RIGHTS BY OUR CLIENT

This demand letter does not waive, release, or limit any of our client's rights under the policy, under New Mexico law, or at equity, including:

• The right to seek all damages identified above in full if litigation becomes necessary
• The right to seek discovery of [CARRIER_SHORT_NAME]'s claims-handling policies and practices relevant to punitive damages
• The right to seek damages for any additional bad faith conduct occurring after the date of this letter
• The right to file regulatory complaints regardless of whether this demand is accepted

XI. CONCLUSION

New Mexico bad faith law exists to protect policyholders from exactly the conduct [CARRIER_SHORT_NAME] has engaged in here. The Legislature created a private right of action under NMSA 1978 § 59A-16-30 specifically so that insureds like our client can enforce their rights directly and effectively. The New Mexico Supreme Court established the Sloan standard to hold insurers accountable when they make frivolous or unfounded refusals to pay legitimate claims.

[CARRIER_SHORT_NAME] has the opportunity to resolve this matter fairly, today, before the full weight of New Mexico bad faith law is brought to bear. We strongly encourage [CARRIER_SHORT_NAME] to use this opportunity.

Please direct all communications regarding this matter to the undersigned. We are available to discuss resolution before the demand deadline.

Respectfully submitted,

[LAW_FIRM_NAME]

By: ___________________________________
[ATTORNEY_NAME]
New Mexico Bar No. [BAR_NUMBER]
[STREET_ADDRESS]
[CITY], NM [ZIP]
Tel: ([____]) [____]-[________]
Fax: ([____]) [____]-[________]
Email: [________________________________]

Counsel for [CLIENT_NAME]

ENCLOSURES:

1. Policy declarations page and all relevant endorsements
2. Complete claim correspondence chronology (Exhibit A)
3. Damage documentation and supporting evidence (Exhibit B)
4. Expert reports and evaluations (Exhibit C)
5. Documentation of consequential damages (Exhibit D)
6. Medical records and bills (if applicable) (Exhibit E)
7. Evidence of [CARRIER_SHORT_NAME]'s inadequate offers and communications (Exhibit F)

CC:

• [CLIENT_NAME] (file copy)
• [CARRIER_SHORT_NAME] Legal Department / General Counsel (via email: [GC_EMAIL])
• New Mexico Office of the Superintendent of Insurance (via complaint submission)

NEW MEXICO BAD FAITH LAW QUICK REFERENCE

SOURCES AND REFERENCES

• NMSA 1978 § 59A-16-20 (Unfair Claims Practices): https://law.justia.com/codes/new-mexico/chapter-59a/article-16/section-59a-16-20/
• NMSA 1978 § 59A-16-30 (Private Right of Action): https://law.justia.com/codes/new-mexico/chapter-59a/article-16/section-59a-16-30/
• NMSA 1978 § 56-8-4 (Prejudgment Interest at 15%): https://law.justia.com/codes/new-mexico/chapter-56/article-8/section-56-8-4/
• NMSA 1978 § 57-12-1 et seq. (Unfair Practices Act): https://law.justia.com/codes/new-mexico/chapter-57/article-12/section-57-12-1/
• NMSA 1978 § 41-3A-1 (Several Liability): https://law.justia.com/codes/new-mexico/chapter-41/article-3a/section-41-3a-1/
• Sloan v. State Farm Mut. Auto. Ins. Co., 2004-NMSC-004: https://law.justia.com/cases/new-mexico/supreme-court/2004/953c.html
• Salas v. Mountain States Mut. Cas. Co. (FindLaw): https://caselaw.findlaw.com/nm-supreme-court/1218890.html
• NM OSI Bulletin 2025-010 (Inquiry vs. Claim): https://www.osi.state.nm.us/en/news/bulletin-2025-010/
• NM Bad Faith Overview — Singleton Schreiber: https://www.singletonschreiber.com/theblog/navigating-and-understanding-insurance-bad-faith-claims-in-new-mexico
• NM OSI (Office of Superintendent of Insurance): https://www.osi.state.nm.us
• Insurance Bad Faith and Punitive Damages After Sloan v. State Farm (UNM Law Review): https://digitalrepository.unm.edu/law_facultyscholarship/603/