Law Commons^™

New Mexico Bad Faith, Cheryl Thompson

Student Thesis Honors (1996-2008)

With the introduction of the automobile came a marked increase in complaints and tension between insureds and their insurance companies. As a result, a significant development in insurance law is that insurers may be held liable in tort for bad faith performance of their duties to insureds. The law of bad faith contemplates that a special relationship exists between insurance companies and their insureds. Recognizing the unique peculiarities of the insurance environment, courts have fashioned the tort of bad faith as a way of regulating the insurer-insured relationship. The underlying premise of the law of bad faith is that insurers …