Phoenix Insurance Bad Faith Attorneys – Review of Unfair Claim Settlement Practices

Unless you’ve been treated unfairly by an insurance company and sought representation with an insurance bad faith attorney in Phoenix Arizona, cases of unfair claim settlement practices are probably a bit of a mystery to you. To clear up a few misconceptions about what an unfair insurance claim settlement practice actually is in Arizona, we start with some of those unfair practices described under A.R.S. § 20-461 and Ariz. Admin. Code R20-6-801 (Arizona’s Unfair Claims Settlement Practices Act).

Phoenix, Scottsdale, Flagstaff, Tucson, etc. residents should be aware of the following 15 insurance practices (there are others, too) – all of which can be considered unfair claim settlement practices in Arizona:

1. MISREPRESENTING your insurance policy’s provisions.

2. FAILING to acknowledge and act reasonably when notified of an insurance claim, or unreasonable delay in investigating and processing the insurance claim.

3. TAKING too much time to affirm or deny an insurance claim.

4. REFUSING to pay an insurance claim without first conducting a reasonable investigation.

5. FAILING to reasonably explain the facts or laws that support denial of the insurance claim or offer of compromise.

6. LACKING good faith in providing a fair and equitable settlement when clearly liable; or attempting to influence a settlement under “Part A” of the insurance policy, for example, by delaying payment when clearly liable under “Part B.”

7. MAKING the insured sue to recover what was due under the insurance policy.

8. FAILING to have standards in place to investigate insurance claims.

9. ATTEMPTING to settle for less than a reasonable person would believe he or she was entitled to based on the insurance company’s ads and printed material.

10. RELYING on an altered insurance application when done without the insured’s knowledge or consent, for the purpose of settling an insurance claim.

11. FAILING to include a statement with insurance claims payments explaining the coverage that triggered those payments.

12. THREATENING an insurance claimant with the insurer’s policy of appealing arbitration awards to influence an insured into low-ball compromises and settlements of an insurance claim.

13. DEMANDING duplicate information during the claim investigation by requiring a preliminary claim report followed by a formal proof of loss form with substantially the same information – a tactic meant to delay investigation and payment of an insurance claim.

14. FAILING to pay the medical provider for diagnosis and treatment when the insurer is liable under the insurance policy.

15. DENYING a driver’s claim under a motor vehicle policy solely because the insured had a medical condition that could have affected his or her driving ability.

Have you or a member of your family experienced one of the unlawful insurance practices described in this post? If you believe so, then you need to take action to protect your legal rights.

Call the Law Offices of Shane L. Harward today at 480.874.2918 for a free initial telephone consultation with an insurance bad faith attorney (Phoenix and Scottsdale locations). Peace of mind alone is well worth the call!