False applications, claims, proofs of loss.

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A. An agent, broker, solicitor, examining physician, applicant or other person shall not knowingly or willfully:

(1) make a false or fraudulent statement or representation as to a material fact in or with reference to an application for insurance or other coverage;

(2) for the purpose of obtaining money or benefit, present or cause to be presented a false or fraudulent claim or proof in support of such a claim for payment of loss under a policy;

(3) prepare, make or subscribe a false or fraudulent account, certificate, affidavit or proof of loss or other document with intent that the same may be presented or used in support of such a claim; or

(4) make a false or fraudulent statement or representation on or relative to an application for a policy for the purpose of obtaining a fee, commission or benefit from an insurer, agent, broker or individual.

B. A false statement or representation made under oath shall constitute and be punishable as perjury. A violation of the provisions of this section when the purported loss or potential loss to the victim insurer is:

(1) two hundred fifty dollars ($250) or less is a petty misdemeanor;

(2) over two hundred fifty dollars ($250) but not more than five hundred dollars ($500) is a misdemeanor;

(3) over five hundred dollars ($500) but not more than two thousand five hundred dollars ($2,500) is a fourth degree felony;

(4) over two thousand five hundred dollars ($2,500) but not more than twenty thousand dollars ($20,000) is a third degree felony; or

(5) over twenty thousand dollars ($20,000) is a second degree felony.

History: Laws 1984, ch. 127, § 290; 2006, ch. 29, § 27.

ANNOTATIONS

The 2006 amendment, effective July 1, 2006, added Paragraph (1) of Subsection B to provide that if the loss is $250 or less, the crime is a petty misdemeanor; added Paragraph (2) of Subsection A to provide that if the loss is more than $250, but not more than $500, the crime is a misdemeanor; added Paragraph (3) of Subsection A to provide that if the loss is more than $500, but not more than $2,500, the crime is a fourth degree felony; added Paragraph (4) of Subsection A to provide that if the damage is more than $2,500 but not more than $20,000, the crime is a third degree felony; and added Paragraph (5) of Subsection B to provide that if the damage is more than $20,000, the crime is a second degree felony.

Insurance agent did not violate Subsection A by listing "draperies sales" as the type of business insured, after inspecting the premises and seeing that drapery sales, as well as manufacturing, took place there. Corbin v. State Farm Ins. Co., 1990-NMSC-014, 109 N.M. 589, 788 P.2d 345.

Am. Jur. 2d, A.L.R. and C.J.S. references. — Negligent misrepresentation as "accident" or "occurrence" warranting insurance coverage, 58 A.L.R.5th 483.


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