The New Mexico Office of Superintendent of Insurance (OSI) published a bulletin reminding insurers and insurance professionals of the requirements under the New Mexico Insurance Fraud Act.

The Fraud Act requires that every insurer or licensed insurance professional who has a reasonable belief that there has been an act of insurance fraud committed, or will be committed, must disclose their knowledge on the matter to OSI’s Insurance Fraud & Law Enforcement Division (IFLED). Insurers and insurance professionals must cooperate with any fraud investigation conducted by IFLED.

Insurers should review their internal processes to ensure they comply with statutory requirements. Failure to report known fraud or failure to adhere to the cooperation requirements may result in administrative action.