Bad Faith Penalties in New Mexico

Bad Faith Penalties in New Mexico

Do You Know the Rule? In New Mexico, employers and carriers may find themselves on the hook for payments beyond the workers’ compensation benefits they owe if a claimant shows they engaged in "bad faith." What is the penalty for bad faith? If unfair claim processing or bad faith has occurred in the handling of a particular claim, the claimant will be awarded, in addition to any benefits due and owing, a penalty of up to 25 percent of the benefit…