INSURANCE BAD FAITH
Arizona law requires the insurance company to handle a claim fairly, honestly, and in a timely fashion. After a loss has occurred, whether it be related to a person's home, auto, or health, the insured is almost always extremely vulnerable due to the emotional and mental stress that naturally arises when an accident or illness has occurred. For that reason, Arizona courts require insurance companies to fully honor their written commitment, the insurance contract between the insurance company and its insureds, and to respond appropriately when a claim is presented. Implied in the insurance contract is an obligation of good faith requiring insurance companies to treat their insureds fairly when evaluating claims. When an insurance company wrongfully denies payment or delays payment of a claim, this is generally a violation of the insurance company's obligation of good faith.
An insurance company can commit bad faith in a variety of ways. For example, it is bad faith for an insurance company to continually place barriers in the way of its insured to delay payment of a claim. These barriers can take the form of multiple examinations under oath or requiring the insured to repeatedly prepare the same and/or similar documents with respect to the claim. It is bad faith for an insurance company to refuse to pay portions of a claim that are undisputed in an effort to force the insured to settle the entire claim for less than a fair value. It is bad faith for an insurance company to fail to promptly and thoroughly investigate a claim, or to only investigate options to deny the claim rather than ways to pay the claim. It is bad faith for an insurance company to refuse to pay portions of a claim based upon biased experts that are supposed to be independent. It is bad faith for an insurance company to require waiver of rights or releases, or to place restrictions that are not contained in the insurance contract, prior to paying portions of a claim that are not in dispute. Simply put, it is bad faith for an insurance company to place a higher value on its own interests, than the interests of the insurance company's insured, and to treat its insured unfairly so that the insurance company can receive a profit.
INSURANCE BAD FAITH LAWSUIT
When successful in bringing a bad faith claim, an insured is entitled to all damages resulting from that claim and, possibly, additional damages not available for breach of contract alone. In cases of extreme misconduct, the insured may also be entitled to receive punitive, or exemplary, damages. And, in most cases, the successful party to an insurance bad faith lawsuit is entitled to an award of reasonable attorneys' fees. If you would like more details as to what you should expect during an insurance bad faith lawsuit, please contact our Phoenix insurance bad faith attorney.
WHY DOES THE INSURANCE INDUSTRY DO THIS?
A common question is why would a billion dollar insurance company try to cheat its insured out of a few thousand dollars. It is actually quite simple -- it is much easier for an insurance company to steal and cheat a thousand insureds out of a thousand dollars per claim, than to steal and cheat one insured out of a million dollars. There are thousands of insurance claims made daily. Sadly, the insurance industry intentionally makes the process difficult so that very few insured parties can contest unfair claim decisions or unfair claims handling procedures without the assistance of an attorney.
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THE CLAIMS HANDLING PROCESS
You must know your rights and obligations in order to protect yourself from a dishonest insurer during the claims handling stage. Insurers have the right to deny a claim if the insured has not lived up to their obligations under the insurance contract. You should notify your insurance agent immediately if there has been an incident requiring you to file an insurance claim, and you should review your insurance contact to identify the relevant language. If you have any questions about coverage, your rights, or your obligations, you should contact a Phoenix insurance bad faith attorney immediately. If you choose not to contact a Phoenix insurance bad faith attorney immediately, please make sure you document all telephone calls with your insurer, and to maintain a complete file regarding the entire claim process including photographs, copies of your insurance contract, and copies of all correspondence exchanged with your insurance adjuster. This will help your Phoenix insurance bad faith attorney when you eventually hire someone to protect your rights and hopefully keep you from messing up your claim beyond help.
WHEN SHOULD YOUR HIRE A PHOENIX INSURANCE BAD FAITH ATTORNEY?
There is no harm in contacting an insurance bad faith attorney immediately. The bad faith attorney can help you appropriately present your claim to your insurance company so that you avoid potential problems, and the bad faith attorney can explain to your rights and your obligations. However, if your insured starts making multiple document requests for the same or similar information, demands that you undergo a sworn statement or examination under oath, or an examination by an expert of the insurance company's choice, you should immediately contact a Phoenix insurance bad faith attorney. If you believe your insurance company is delaying payment on your claim or your insurance company has wrongfully denied payment for your claim, you have a right to seek independent representation with a Phoenix insurance bad faith attorney and to seek compensation for insurance bad faith from your insurance company.
Phoenix insurance bad faith attorney Shane Harward represents the interests of insureds in all areas, including but not limited to, coverage disputes, examinations under oath, subrogation issues, policy limits stacking, unfair claims practice violations, and bad faith litigation throughout the state of Arizona including, but not limited to, Phoenix, Scottsdale, Mesa, Tempe, Chandler, Glendale, Sun City, Prescott, Flagstaff, Tucson, Kingman, Bullhead City, Yuma, Lake Havasu, Surprise, Payson, Heber, and other communities in Arizona
