Insurance is purchased by the consumer to protect themselves from claims and lawsuits. Drivers of motor vehicles must have insurance on their car but also homes, businesses, and health. Such insurance coverage allows for peace of mind in the event something happens. Insurance companies should provide a quick and professional action and coverage. Our firm is careful to make sure payments get made and are received on time. There should be no lapse in coverage and no gap in protecting our clients from any claims or lawsuits. Sometimes the insurance company does not do their job and thus they act in “bad faith” to its customers when paying claims and providing the coverage that was bought.
We are mindful of how important insurance is to our clients and the expectation that the insurance company in question will honor their contracts and commitments. New Mexico Law requires that insurance companies treat customers with “good faith and fair dealings.” The New Mexico Unfair Trade Practices Act and the New Mexico Insurance Code assists customers in dealing with insurance claims and insurance companies acting in bad faith by either denying the claim or paying too little.
Insurance bad faith is often associated with punitive damage awards against insurance companies. When an insurance company acts in bad faith, it could be subject to punitive damages. Insurance companies that fail to act fairly and in good faith towards policyholders and do not consider their interests equal to its own are riding the line of bad faith as an Insurance company.
If an insurance company breaks this law, the policyholder can collect more than what is usually owed. The policyholder can also collect damages from the unreasonable denial of benefits or a delay in processing the claim. In the event that an insurance company acts in a malicious manner a jury can award punitive damages.
We have successfully handled insurance claims, including insurance “bad faith” claims. We have tried these cases to completion with success or have presented such cases for settlement prior to trial. Contact us about your bad faith insurance case today at 505-404-9640.