You pay your insurance premiums faithfully, expecting your insurer to uphold their end of the bargain when you need to file a claim. Unfortunately, some insurance companies prioritize their profits over their policyholders’ legitimate needs, engaging in “bad faith” practices. If you believe your Arizona insurer is not handling your claim honestly and fairly, AZlawnow can help you understand your rights and explore your legal options.
What is Insurance Bad Faith in Arizona?
Insurance companies in Arizona have a legal duty to act in good faith and deal fairly with their policyholders. This means they must:
Bad faith occurs when an insurer unreasonably and without proper cause denies, delays, or underpays a claim, or otherwise fails to fulfill its obligations under the insurance policy and Arizona law.
(602) 654-0202
(602) 654-0202
(602) 654-0202
If your insurer is found to have acted in bad faith, you may be entitled to recover damages beyond just the policy benefits. These can include:
The amount the insurer should have paid on your original claim.
Additional financial losses you suffered as a direct result of the insurer's bad faith (e.g., damage to your credit, loss of property).
Compensation for the anxiety, stress, and mental anguish caused by the insurer's conduct.
You may be able to recover the legal expenses incurred in pursuing the bad faith claim.
Keep copies of all correspondence with your insurer, notes from phone calls (dates, times, names, what was discussed), your policy documents, and any evidence related to your original claim.
When possible, communicate with your insurer in writing (email or certified mail) to create a paper trail.
Pay attention to deadlines and respond to insurer requests promptly (as long as they are reasonable).
You can file a complaint against an insurance company with the Arizona Department of Insurance and Financial Institutions (DIFI). This can sometimes prompt an investigation and resolution.
This is the most critical step. An attorney can assess whether your insurer’s actions constitute bad faith, explain your rights, and represent you in negotiations or litigation.
Insurance companies have vast resources and legal teams. You need an advocate on your side who understands Arizona bad faith law and isn’t afraid to take on powerful insurers. At AZLawnNow, we will meticulously review your case, advise you on the best course of action, and fight vigorously to hold your insurance company accountable.
1) Denying a claim without a reasonable investigation or legitimate reason.
2) Unreasonably delaying the investigation or payment of a claim.
3) 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).
4) Offering significantly less money than a claim is reasonably worth (lowball offers).
5) Misrepresenting facts or insurance policy provisions.
6) Failing to disclose policy limitations or exclusions before purchase or when a claim is made.
7) Requiring excessive and unnecessary paperwork or documentation to stall the process.
8) Failing to provide a clear, written explanation for a claim denial.
9) Refusing to defend you against a third-party claim when the policy requires it.
10) 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.
Arizona has laws in place to protect policyholders. The Arizona Unfair Claim Settlement Practices Act (A.R.S. § 20-461) outlines specific actions that constitute unfair or deceptive acts by an insurer. Violations of this act can be strong evidence in a bad faith claim. The Act prohibits insurers from, among other things:
1) Misrepresenting pertinent facts or policy provisions.
2) Failing to acknowledge and act reasonably promptly upon communications concerning claims.
3) Failing to adopt and implement reasonable standards for the prompt investigation of claims.
4) Refusing to pay claims without conducting a reasonable investigation.
5) Not attempting in good faith to effectuate prompt, fair, and equitable settlements of claims in which liability has become reasonably clear.
If you believe your insurance company is acting in bad faith, don’t let them get away with it. Contact today for a free consultation. Call us or complete our online form to learn how we can help you get the justice you deserve.
AZ Law Now Injury Attorneys in Buckeye, AZ is a relentless advocate for Arizonans who were injured as a result of someone else’s negligence.
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