Section 52-5-4 NMSA 1978 (Repl. Pamp. 1991), authorizes the WCA to adopt reasonable rules and regulations for effecting the purposes of the act. Section 52-1-28.1 NMSA 1978 (Repl. Pamp. 1991), authorizes the director to promulgate rules and regulations regarding the prohibition against bad faith and unfair claims processing. Section 52-5-1.3 NMSA 1978 (Repl. Pamp. 1991), empowers the director to investigate, penalize or refer allegations of fraud. Section 52-1-61 NMSA 1978 (Repl. Pamp. 1991), authorizes the director to penalize persons who violate the provisions of the act.
N.M. Admin. Code § 11.4.5.3