Phoenix AZ Insurance Bad Faith Lawyers

When insurance works the way it is supposed to, it can be a lifesaver in times of severe financial, physical, or emotional distress, whether the insurance involved is for automobile, health, homeowner's, life, disability, or fire or water damage.  But when an insurance company fails to live up to its promises, the consequences can be devastating.  Brothers Wayne and Mark Arnett help clients throughout Arizona who have been mistreated by insurance companies obtain the compensation to which they are entitled. 

Insurance companies are in business to protect their bottom line and pay their shareholders, and for the less scrupulous insurance companies, deny claims or pay as little as they can.  When an insurance company goes beyond making reasonable arguments for its position and deliberately or unreasonably refuses to pay on a claim, that company has crossed the line into bad faith and is liable not only for the benefits on the policy, but also for any further damages its actions have caused, as well as punitive damages in the appropriate case.

What is Insurance Bad Faith?

Essentially, it is an unfair practice for an insurance company to unlawfully or unreasonably withhold payment of insurance benefits on a valid claim.  Most policies also promise to defend the insured against third parties, such as when an insured driver is involved in an automobile accident and is sued by an insured party.  An unreasonable refusal to defend the insured, or to accept a reasonable demand and settle with the third party, can also be examples of insurance bad faith.  Other grounds for bad faith could be failing to investigate a claim properly, undue delay in processing a claim, or making "lowball" settlement offers far below what an insured or third party should reasonably expect given the policy limits and actual damages involved.  Rescinding a policy solely to avoid paying a claim when to do so is not justified is another way insurance companies sometimes act in bad faith.

To determine whether an insurance company acted in bad faith, one must look objectively at the customary course of business in the industry, as well as subjectively at the insurance company's actions, to establish whether the company was merely negligent or wrong in its decision, or if its decision involved bad motives or an unreasonable refusal to follow the terms of the policy.

Contract, Tort, and the Damages Recoverable

An insurance policy is a contract, and if its terms are not followed by one party, the other party can sue for breach of contract, recovering the amount of benefits he or she should have received under the policy.  Moreover, every contract, including an insurance policy, also contains an implied covenant of good faith and fair dealing.  Violation of this covenant gives rise to a tort claim, meaning that recoverable damages include all actual damages as well as non-economic losses such as mental anguish and emotional distress.  Attorney's fees are often recoverable in tort cases, and where appropriate, the plaintiff may sue for punitive damages as well.

Experienced Bad Faith Attorneys, Outstanding Results

Phoenix insurance lawyers, Wayne and Mark have been involved in numerous trials and appeals that have helped shape insurance bad faith law in Arizona, including laws regarding punitive damages.  Click here to learn more about the results the attorneys have achieved for their clients, and the impact these cases have had on the legal landscape.

If You Believe Your Insurance Company Has Mistreated You, Call Our Office Today For A Free Consultation.