What is New Mexico's law on standard of review (erisa)?

De novo unless the plan grants discretion; then abuse-of-discretion applies. (Firestone v. Bruch, 489 U.S. 101 (1989))

New Mexico law

Long-Term Disability & ERISA Laws in New Mexico.

Most private long-term disability (LTD) insurance is employer-sponsored and governed by ERISA, which preempts state contract and bad-faith claims. ERISA claims must exhaust internal appeals and are reviewed under a deferential standard if the plan grants discretion. Individual (non-ERISA) policies are governed by New Mexico contract law and may support common-law bad-faith claims and UPA claims with treble damages.

Last verified: 2026-04-17

State law

Key New Mexico Statutes

ERISA Preemption29 U.S.C. § 1144

ERISA preempts state-law breach of contract and bad-faith claims for employer-sponsored LTD plans.

Individual Policy Bad FaithNew Mexico common law; NMSA 1978 §§ 59A-16-1 et seq.; § 57-12-1 et seq.

For non-ERISA individual LTD policies, New Mexico recognizes common-law first-party bad-faith claims. The Unfair Insurance Practices Act and Unfair Practices Act may also apply, with treble damages available under the UPA for willful conduct.

Standard of Review (ERISA)Firestone v. Bruch, 489 U.S. 101 (1989)

De novo unless the plan grants discretion; then abuse-of-discretion applies.

State law

Official Sources

U.S. Department of Labor — EBSA NM Office of Superintendent of Insurance

Not Legal Advice

This page summarizes publicly available statutes and rules for informational purposes only. It does not constitute legal advice, and no attorney-client relationship is created by viewing this content. Laws change — always verify with the primary source or consult a licensed attorney in New Mexico.

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