Insurance Bad Faith

Delays, lack of transparency, and unwarranted denials are all too common in the insurance industry. When an insurer acts in bad faith, prioritizing its own profits over your legitimate claim, you have the right to hold it accountable.

What Is Insurance Bad Faith?

Insurance companies have a legal duty to deal fairly and honestly with their policyholders. When an insurer unreasonably denies a valid claim, delays payment without justification, refuses to investigate properly, or otherwise acts to undermine a legitimate claim, it may be liable for insurance bad faith.

In New Mexico, policyholders have strong legal protections against bad faith conduct. A successful bad faith claim can result in recovery not only of the original claim amount, but also additional damages, including consequential damages and, in some cases, punitive damages.

Common Forms of Insurance Bad Faith

• Wrongful denial of a valid claim without adequate investigation
• Unreasonable delay in processing or paying a claim
• Offering a settlement grossly below the value of the claim
• Failure to communicate material information to the policyholder
• Misrepresenting policy terms or applicable law
• Refusing to defend a covered lawsuit
• Using deceptive tactics to pressure claimants into settling for less

Holding Insurers Accountable

Insurance companies are well-resourced and experienced at protecting their bottom line. Successfully pursuing a bad faith claim requires an attorney who understands insurance law, who knows how to obtain internal claims handling records through discovery, and who is prepared to take the case to trial.

Felicia Weingartner brings that experience to every insurance bad faith case she handles, pursuing the full compensation her clients are owed and accountability that deters future misconduct.