Bad Faith Insurance Litigation

New Mexico recognizes the tort of bad faith delay or refusal to pay a valid claim by an insured. Under New Mexico law, there is an implied covenant of fair dealing which creates an obligation between the parties to an insurance contract to act in good faith.

An insurer cannot be partial to its own interests, but must give its interests and the interests of its insured equal consideration. An insurance company acts in bad faith when it places its own interests ahead of the interests of the insured.

An insurance company can act wrongfully by, among other things:

  • failing to affirm or deny coverage of claims of insureds within a reasonable time after proof of loss requirements under the policy have been completed and submitted by the insured;

  • not attempting in good faith to effectuate prompt, fair and equitable settlements of an insured's claims in which liability has become reasonably clear;

  • attempting to settle a claim by an insured for less than the amount to which a reasonable person would have believed he was entitled by reference to written or printed advertising material accompanying or made part of an application; or,

  • failing to promptly provide an insured a reasonable explanation of the basis relied on in the policy in relation to the facts or applicable law for denial of a claim or for the offer of a compromise settlement.

If you feel you are the victim of bad faith insurance practices, contact us for an initial consultation. 

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The Furth Law Firm, P.A.

The Furth Building
780 S. Walnut #5
Las Cruces, New Mexico 88001
Phone: 575-522-3996
Fax: 575-532-5815