STATE LAW – NEW MEXICO LIBRARY – GUIDE 10
New Mexico Insurance Agents, Applications & Failure to Procure Coverage
When expected coverage is missing or materially different from what was requested, the application and procurement record may create issues separate from interpretation of the policy actually issued.
- Obtain applications, quotes, proposals, renewals and change requests.
- Preserve communications concerning requested limits and coverages.
- Identify the producer’s role and relationship to the insurer.
- Compare requested coverage with the policy and endorsements actually issued.
New Mexico agents must use reasonable skill and diligence when they undertake to procure insurance
Sanchez v. Martinez holds that an insurance agent or broker who undertakes to obtain insurance and negligently fails to do so may be liable for resulting damages under contract or negligence principles.
An agent who agrees to procure or renew coverage must obtain the insurance or seasonably notify the client if unable to do so. The claim should identify the requested coverage, the undertaking, the policy actually issued, and the resulting uninsured loss.
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Official Sources
Verify current New Mexico law at the source
The reviewed New Mexico guide content above is preserved. Use current statutes, insurance regulation, controlling cases and the operative policy before legal reliance.