When you pay premiums for an insurance policy, New Mexico law recognizes that you and your insurance company have formed a binding contract. If the insurance company fails to hold up its end of the bargain, you have the right to sue for breach of contract.
New Mexico law also recognizes that you and your insurance company are not on equal footing. You may only deal with a handful of insurance policies over the course of your life. The insurance company may have hundreds or thousands of employees, including agents, adjuster, lawyers, actuaries, and other experts who design, write, and sell the insurance policies.
Because of this, New Mexico courts must read insurance policies in a way that makes up for this disparity. That is, when the meaning of a policy provision is unclear, courts should generally enforce the meaning that favors you, the insured.
Achieving that result, however, often requires both thorough knowledge of the policy and command of insurance law. If you believe your insurance company has committed a breach of contract, consider consulting an insurance bad faith attorney.