Bad Faith | AZ Law Now Glossary
Insurance

Bad Faith

What it means

An insurance company’s unreasonable denial, delay, or undervaluation of a valid claim. Arizona allows separate bad faith lawsuits against insurers who fail to meet their duty of good faith.

Arizona context

Arizona recognizes bad faith claims against first-party insurers (your own insurance) and limited bad faith claims against third-party insurers. Damages can include the original claim plus attorney fees and punitive damages.