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Unfair Claims Practices in New Mexico

Posted by Kenneth Stalter | Apr 30, 2020 | 0 Comments

Article 16 of the New Mexico Insurance Code prohibits insurance companies and adjusters from engaging in a variety of abusive practices. Also known as the Trade Practices and Frauds Act or the Unfair Claims Practices Act, the Act was designed to protect policyholders who make legitimate claims for insurance benefits. The Act applies to all types of insurance carriers and products, including automobile insurance, homeowner's insurance, health insurance, life insurance, and other types of policies.

Unfair claims practices addressed in the Act include:

  • Misrepresenting pertinent facts and policy provisions
  • Failing to acknowledge and act reasonably promptly on communications from policyholders
  • Failing to attempt in good faith to settle a claim fairly after liability is clear
  • Failing to provide reasonable explanations for denial of a claim

A person harmed by these and other unfair claims practices may bring a case for damages against the company. If a plaintiff shows that an insurance company violated these provisions and did so willfully, the plaintiff can be awarded attorneys' fees and the costs of the action.

About the Author

Kenneth Stalter

Ken Stalter graduated with honors from Harvard Law School in 2008. Before founding Stalter Law LLC, he was General Counsel to the New Mexico Attorney General. A former prosecutor and appellate attorney, he has experience with all levels of the New Mexico court system. His clients include New Mexi...


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