In New Mexico, state law requires insurance companies to handle all claims in a reasonable manner and in a good-faith attempt to resolve them according to the terms of the policy. Anything that falls short of this responsibility is “insurance bad faith,” and it can interfere with an accident victim’s ability to recover fair compensation during a personal injury claim.
What Is a Bad Faith Insurance Claim?
New Mexico law has an “implied covenant of good faith and fair dealing” when it comes to insurance policies and other contracts. Under this legal doctrine, all parties involved in a legally binding contract must act honestly and reasonably to uphold their end of the bargain. A breach of this duty of care (either intentionally or negligently) is known as acting in “bad faith”
Examples of insurance bad faith include:
- Failing to properly investigate a claim
- Ignoring calls, emails or communications from clients
- Refusing to offer a reasonable settlement
- Pushing for litigation without cause
- Unfounded or wrongful claim denials
- Unnecessary claim delays
- Harassing or intimidating the claimant
When an insurance company fails to uphold its end of an insurance contract, the adversely affected claimant has the right to file an additional claim against the insurer for bad faith. An insurance bad faith claim seeks financial compensation or damages from the insurance company for its neglect to handle a case with proper care.
How Do I Know if I’m a Victim of Bad Faith?
If you file an insurance claim following a harmful auto accident, slip and fall, or other incident in New Mexico, you can generally expect an insurance company to try various tactics to minimize your payout. Most of these will not reach the level of insurance bad faith. If the insurer is dishonest, makes a material misrepresentation of a fact, unjustly denies your claim or refuses to cooperate, however, you may be eligible for financial compensation for bad faith.
What Are My Rights If I’m Impacted By Insurance Bad Faith?
A bad faith insurance claim in New Mexico could result in damages being paid to the victim by the insurance company not only for the original claim, but also for the carrier’s dishonesty and unfair dealings.
To win an insurance bad faith case, you must have evidence of this tort or wrongdoing. Keep copies and transcripts of all encounters you have had with the insurance company and its claims adjusters. Save letters, emails and rejection notices.
Read the insurance policy carefully to determine if the insurer is upholding its end of the contract. Then, consult with a lawyer to find out if you have grounds for an insurance bad faith claim.
When Should I Hire an Attorney for Insurance Bad Faith?
If you are encountering pushback, challenges or issues while trying to recover compensation for an accident that was caused by someone else in New Mexico, contact an attorney as soon as possible. Strict deadlines apply to insurance bad faith claims. The sooner you seek counsel from an attorney, the better.
An experienced insurance bad faith lawyer can take immediate action to collect evidence against the insurer and pursue maximum compensation for your damages. A lawyer will gather critical information and use aggressive legal strategies to hold an insurance company accountable for failing to properly process your claim.