Insurance Disputes Laws in New Mexico.

Prohibits specified unfair claim settlement practices. Private cause of action available where insured suffers damages from prohibited conduct.

First-party bad faith requires showing that the insurer acted with frivolous or unfounded refusal to pay. Punitive damages available.

Insurer's failure to settle a third-party claim within policy limits where an excess judgment is reasonably probable supports bad-faith claim by the insured.

UPA treble damages may apply to certain insurance-related misconduct, providing a parallel theory to traditional bad-faith claims.