Bad faith in Arizona: when your own insurer won't play fair
An insurance policy is a promise: pay your premiums, and the company will deal with you fairly when you have a covered loss. Arizona law backs that promise with a duty of good faith and fair dealing — and when an insurer breaks it unreasonably, that can be its own claim.
What bad faith can look like
- Denying a clearly covered claim without a reasonable basis
- Dragging out the process or ignoring documents you've sent
- Failing to investigate before saying no
- Making a lowball offer that ignores the evidence
- Misrepresenting what the policy actually covers
A single delay or a good-faith dispute over value isn't automatically bad faith. The question Arizona courts ask is whether the insurer acted unreasonably and knew — or should have known — that it was.
Why it matters to you
A bad-faith claim can allow recovery beyond the original benefit owed, and in truly egregious cases Arizona law can permit additional damages meant to deter the conduct. The practical point: you are not powerless just because the company said no.
The insider takeaway
Having spent years on the insurance side, Randy knows the difference between a hard-but-legitimate position and a claim being handled in bad faith — and how to document the record that proves it.
This article is general information, not legal advice. Every case is different; contact the firm to discuss yours.