Bad Faith Insurance

• Denying a claim without a reasonable investigation or legitimate reason.
• Unreasonably delaying the investigation or payment of a claim.
• Failing to accept or deny a claim within a reasonable timeframe (Arizona law generally requires insurers to accept or deny a claim within 15 working days after receipt, and to conduct investigations within 30 days after notification, unless there’s a valid reason for delay).
• Offering significantly less money than a claim is reasonably worth (lowball offers).
• Misrepresenting facts or insurance policy provisions.
• Failing to disclose policy limitations or exclusions before purchase or when a claim is made.
• Requiring excessive and unnecessary paperwork or documentation to stall the process.
• Failing to provide a clear, written explanation for a claim denial.
• Refusing to defend you against a third-party claim when the policy requires it.
• Making threatening statements or using aggressive tactics to dissuade you from pursuing your claim.

It’s important to note that a simple mistake or a legitimate dispute over the value of a claim does not automatically constitute bad faith. However, a pattern of unreasonable conduct or a denial without a sound basis may be grounds for a bad faith lawsuit.