In Azar v. Prudential Insurance Co., 2003 NMCA 62, 133 N.M. 669, 68 P.3d 909, a case involving modal premiums, we explored in detail the contours of an insurer's "duty to disclose."
The Court made clear that in New Mexico insurers have no pre-issuance duty to disclose based on the covenant of good faith or any notion of fiduciary duty to the insured. Id.
The Court held that a pre-issuance common law duty might exist based on a series of cases recognizing an obligation on insurers and insureds "not to misrepresent or withhold information material to an insurance contract." Id.