UJI 13-1703B NMRA
UJI 13-1703B. Bad faith failure to defend.
An insurer must act fairly, reasonably, honestly, and in good faith in determining
whether it has a duty to defend a claim [against its insured]. An insurer acts in bad faith
in refusing to defend a claim if it
[fails to conduct an investigation of the claim that is timely and reasonable under
the circumstances;]
[fails to conduct a fair and honest evaluation of its duty to defend, giving the
interests of its insured at least the same weight as its own interests;] [or]
[unreasonably delays notifying the insured of its decision about whether or not it
will defend the claim.]