New Mexico Insurance Fraud Laws

In New Mexico, insurance fraud consists of intentionally providing false, incomplete, or misleading information for the purpose of obtaining insurance benefits. The Land of Enchantment specifically outlaws insurance fraud and penalties vary depending upon the actual or potential loss to the victim.

For example, for losses that are $250 or less, the crime is punishable by up to 6 months in prison and up to $500 in fines but for losses that are over $20,000, the crime is punishable by up to 9 years in prison and up to $10,000 in fines. In addition to those fines, victims may also seek restitution and other costs. The following is a quick summary of New Mexico's insurance fraud laws.

New Mexico Insurance Fraud Laws

The following table outlines insurance fraud laws in New Mexico.

Code Sections

NEW MEXICO STAT. ANN. ยงยง 59A-16-8, 59A-16-29, and 59A-16-30

What is Prohibited?
  • Providing a false or fraudulent statement or representation regarding a fact that is material to an insurance application
  • Filing a false or fraudulent claim for money or benefits
  • Preparing, making, or subscribing a false or fraudulent document in support of a claim
  • Making a false or fraudulent statement or representation regarding an application for a policy in order to obtain a fee, commission, or benefit from an insurer, agent, broker, or individual
Penalties

Criminal penalties and fines:

  • If the actual or potential loss to the victim is $250 or less, it is a petty misdemeanor punishable by up to 6 months in prison and up to $500 in fines.
  • If the actual or potential loss is over $250, it is a misdemeanor punishable by up to 1 year in prison and up to $1,000 in fines.
  • If the actual or potential loss is over $500 but not more than $2,500, it is a fourth-degree felony punishable by up to 18 months in prison and up to $5,000 in fines.
  • If the actual or potential loss is over $2,500 but not more than $20,000, it is a third-degree felony punishable by up to 3 years in prison and up to $5,000 in fines.
  • If the actual or potential loss is over $20,000, it is a second-degree felony punishable by up to 9 years in prison and up to $10,000 in fines.

Insurers, brokers, or agents who commit insurance fraud may also have their licenses suspended or revoked.

Remedies An insured may bring an action against the insurer, broker, or agent to recover damages and request costs such as attorney's fees.
Defenses The insurer or service provider had no knowledge of the insurance fraud and the fraudulent act was committed by an employee who was acting without authority.
How do I File a Complaint Against a New Mexico Insurance Company?

If you're having problems with an insurance company or agent, a complaint may be filed with the Office of Superintendent of Insurance.

New Mexico Insurance Fraud Law: Related Resources

Insurance fraud laws can sometimes be confusing. If you have been charged with insurance fraud, you may want to consult an experienced New Mexico criminal defense attorney for questions about your specific situation. You can also visit FindLaw's section on insurance fraud for more information on this topic.

Next Steps: Search for a Local Attorney

Contact a qualified attorney.