New Mexico § 38-1-10 - Attorney fees

§ 38-1-10. Attorney fees

In any action against an unauthorized foreign or alien insurer upon a contract of

insurance issued or delivered in this state to a resident thereof or to a corporation

authorized to do business therein, if the insurer has failed for thirty days after

demand prior to the commencement of the action to make payment in accordance with

the terms of the contract, and it appears to the court that such refusal was vexatious

and without reasonable cause, the court may allow to the plaintiff a reasonable attorney

fee and include such fee in any judgment that may be rendered in such action. Such fee shall not exceed twelve and one-half percent of the amount which the court

or jury finds the plaintiff is entitled to recover against the insurer, but in no

event shall such fee be less than twenty-five dollars [($25.00)]. Failure of an insurer to defend any such action shall be deemed prima facie evidence

that its failure to make payment was vexatious and without reasonable cause.