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Bad Faith Claims
Arizona Bad Faith claims
In Arizona, every insurance policy includes an implied duty of good faith and fair dealing. When an insurance company breaches the duty of good faith and fair dealing, it commits a tort allowing the insured to bring a cause of action to recover damages. This is often called a claim for “bad faith.” An insurance company commits bad faith when it intentionally denies, fails to pay or delays payment of a claim without a reasonable basis, knowing that it acted with a reasonable basis. There are numerous ways an insurance company can commit bad faith in Arizona, including:
- Failing to pay monies owed under an insurance policy
- Delaying payments of an insurance claim
- Lowballing or underpaying an insurance claim
- Forcing a policy through needless adversarial hoops to recover an insurance claim
- Misrepresenting facts or pertinent terms of the insurance policy
- Failing to conduct a reasonable investigation of a claim
- Forcing an insured to file suit to recover damages for a covered claim
- Failing to recognize a valid assignment of a claim
Proving bad Faith
If you prove a bad faith claim, you may be entitled to “extra-contractual” damages which are outside the terms of the insurance policy. This could include, for example, damages for emotional distress, inconvenience, humiliation, anxiety, monetary (financial) loss, and even punitive damages to punish and deter future similar conduct from the insurance company.
The type of bad faith claim available is dependent on the facts and circumstances of each claim, which can be shown through discovery of the insurance company’s claim file and internal communications.
Bad faith claims can arise out of any type of insurance policy, including but not limited to, automobile, homeowners, health, disability, rental, motorcycle, boat, commercial general liability, professional liability and umbrella/excess policies. They could include claims for property damage, uninsured/underinsured motorist benefits, health benefits, and disability benefits.
Bad faith claim also arise out of “Morris” or “Damron” agreements which are unique in Arizona. These types of claims develop when an insurer company fails to protect its policyholder under the terms of the policy, potentially creating personal exposure against a policyholder.
Gorman and Guerrero Law has years of experiences evaluating all different types of claims for insurance bad faith. The attorneys at Gorman and Guerrero understand how insurance companies work and how to maximize recovery on claims for bad faith. If you believe you have a claim against an insurance company for bad faith, contact Gorman and Guerrero Law to set up you complimentary initial consultation.