A bad faith insurance claim is a civil action against an insurance company for unreasonably withholding benefits from you after an accident injury or a family member’s death. Since the insurance company is in a “power position” over consumers, it must act in good faith and fair dealing to process claims and pay you what they are worth. If it fails in this capacity, you can file a bad faith claim against the insurer for additional compensation related to your added losses.
It is incredibly challenging to navigate a bad faith insurance claim or lawsuit without a New Mexico personal injury lawyer’s experience and advice. We can help you determine if your case has legal standing and, if so, what you can do to proceed further.
In This Post
In this blog post, I will share examples of situations that give rise to a bad faith claim, compensation available under New Mexico laws, and what you can do if you think your insurance company is mistreating you.
Reasons for a Bad Faith Insurance Claim
Bad faith insurance claims ultimately stem from an insurer handling your case unlawfully, either due to denial or delay of payment. Insurance companies have an advantage because it has tools, knowledge, experience, and the ability to profit from their position. Lawmakers at the federal and state level recognize this fact, and they create laws and rules that discourage this behavior through added penalties.
Examples of bad faith actions may include:
- Failure to investigate a claim promptly
- Unreasonable claims processing
- Unreasonable denial of payment
- Unreasonable delay in payment
- Failure to settle a lawsuit
- Failure to defend a lawsuit
- And more
All too often, there are substantial financial benefits that insurance companies can receive by not doing the right thing. Ensure that you document any instances of payment delays, denials, or dealings that seem unfair or even illegal. You do not have to put up with behavior and treatment that further jeopardizes your health and well-being.
Bad Faith Compensation Available in New Mexico
Under NMSA § 59A-16-20, if you have suffered from financial damages due to a violation by the insurance company after a personal injury or wrongful death claim, you can bring a civil lawsuit against it in district court. The prevailing party receives payment for all related costs.
You can receive an award for attorneys’ fees if:
- the party complaining of the violation of that article has brought an action that he knew to be groundless; or
- the party charged with the breach of that article has willfully engaged in the violation.
If the insurer will not pay you, it is imperative to understand your rights as a consumer and obtain legal counsel. Besides taking notes that help you remember critical dates, retain documents such as receipts, invoices, letters, and anything else that speaks to your case’s facts and circumstances.
Hiring a Personal Injury Lawyer for Legal Help
A personal injury lawyer who takes bad faith claims can help you handle the legal aspects while avoiding mistakes that can derail your original case. Ensure you hire legal counsel to learn more about your rights during this process since they are very complex.
We will analyze your situation under applicable laws to determine if the insurance company acted unlawfully when handling your insurance claim. An attorney will also help you avoid making self-incriminating statements or missing critical deadlines that govern your case’s timeline.
No Advance Legal Fees
At Grano Law Offices, P.C., we take cases on a contingency fee basis, which means that you do not have to pay us anything in advance if you decide to hire us to represent you or your family. My legal team only gets paid for its time and resources when you win your case. Otherwise, we do not receive a penny from you.
Free Claim Evaluation
Get a Free Claim Evaluation by messaging Marc Grano here or calling our legal team at (505) 426-8711. We return all messages within 24 business hours.
