This notice serves as an official reminder that all insurers and licensed insurance professionals are required to comply with the mandatory reporting and cooperation requirements established under the New Mexico Insurance Fraud Act. These obligations are ongoing and apply to every insurer, adjuster, producer, and insurance professional conducting business within the State of New Mexico.

Under Section 59A-16C-6(A), every insurer or licensed insurance professional who has a reasonable belief that an act of insurance fraud will be, is being, or has been committed must furnish and disclose all relevant knowledge and information to OSI’s Insurance Fraud & Law Enforcement Division (IFLED). Additionally, all insurers and licensees are required to fully cooperate with any investigation conducted by IFLED regarding suspected or confirmed insurance fraud activity.

Failure to comply with the mandatory reporting and cooperation requirements set forth in the Insurance Fraud Act may result in administrative action, including fines, suspension, revocation, or denial of licensure, pursuant to  Section 59A-1-18 NMSA 1978. Section 59A-16C-7 grants civil immunity to parties reporting suspected insurance fraud to OSI and/or IFLED.

All insurers and licensees are strongly encouraged to review the statutory requirements outlined in the Insurance Fraud Act and ensure that their internal processes support timely disclosure and full cooperation with OSI investigations. Questions regarding reporting obligations may be directed to JosephJ.Chavez1@osi.nm.gov

Thank you for your ongoing cooperation and commitment to maintaining the integrity of the insurance marketplace in New Mexico.

For complete content please see PDF below.

Mandatory Reporting Requirements Under the New Mexico Insurance Fraud Act