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Prescott Insurance Bad Faith Lawyer

Prescott Insurance Bad Faith LawyerThe hardships of being involved in a life-threatening accident are difficult enough. The bad faith of an insurance company makes life unnecessarily difficult. For honest individuals simply looking for the means to recover from tragedy, insurance companies pose a seemingly impassable barrier. Seeking help from a Prescott bad faith insurance lawyer has proven to be the single most effective remedy for individuals wronged by their insurance companies.

For decades, the experienced Prescott personal injury attorneys of the Jensen Phelan Law Firm have protected insured individuals from the wrongdoing of insurance companies. We utilize our collective knowledge and tools to aggressively seek compensation from insurance companies on your behalf. If you were the victim of a bad faith insurance company’s actions, speak to one of our Prescott insurance bad faith attorneys today by calling (928) 778-2660 or by sending us a message online.

Insurance Dispute Legal Overview

  • What is known as insurance bad faith (or insurance fraud): A tort claim that an individual with insurance may have against an insurance company.
  • Who is involved in an insurance bad faith claim: An insurance company and the insured party.
  • Why insurance fraud occurs: Because insurance companies owe a duty of good faith and fair dealing with the persons they insure. This duty is often referred to as a covenant. When bad insurance faith has occurred, it means that an insurance company has violated the legal covenant.
  • How a legal covenant can be violated: This is often quite complicated and can occur in many ways. In some instances, the improper investigation by an insurance company of damaged property can qualify as bad faith. Other violations can include improper valuations of damages, delay of payment for damages, denial of all valid damage claims, and so on.

Bad Faith Insurance Claims in Arizona

Having insurance is just one way Arizonans protect themselves from unforeseen circumstances. A person who files a claim and is not compensated with the monetary benefits for which they paid may be entitled to file an Arizona bad faith insurance claim. 

In Arizona, insurance companies must be fair and reasonable in their handling of claims. It is called the duty of “good faith and fair dealing.” If a company fails to meet that fairness standard, a bad faith claim can be sought. These claims have a strict statute of limitations that must be followed. Specifically, there is a two-year deadline for bringing a bad faith insurance claim. The timeline for taking legal action begins on the date when a breach of contract was committed, so do not wait to contact an attorney.

The Arizona Supreme Court ruled that if an insurance company fails to act in good faith, the insured is not only limited to damages specified in the contract. Insured individuals have various forms of recourse for harm caused by the insurer’s ill-will, including punitive damages.

Providing Evidence of Bad Faith in Arizona Court

Plaintiffs bringing a bad faith claim must show that the insurer’s denial of benefits was unreasonable, and the insurer was aware or should have known it was liable to pay. A fair argument can be made as to whether the claim deserves to be paid if the appropriate investigation has been conducted.

When the court is deciding whether bad faith exists, it uses the reasonableness standard. Viewing the Arizona court system, the following situations have been deemed unreasonable:

  • There is no reasonable investigation conducted by the insurance company prior to denying a claim.
  • A claim is delayed so the insurer can attempt to negotiate a lower settlement amount.
  • There is an unreasonable delay in the insurer’s response to a claim.
  • The insurance company relies on a portion of the policy that was previously declared invalid.
  • The company delays payments on the undisputed portion of the claim in order to try and settle the disputed portion.
  • An insurance company fails to notify the insured of their obligation to submit specific documentation. 

Ultimately, even if the insurer pays the benefits you are entitled to, the bad faith claim still stands. In other words, demonstrating bad faith requires only the initial unreasonable delay if there is wrongful intent (“evil mind guiding an evil hand”) for the delay. 

Negligent Insurance Practices and Their Effects

Any auto accident or injury incident is distressing, whether it is caused by human error or as a result of negligence. Coming out of the accident with injuries can be overwhelming to process. When an insurance company fails to pay a valid claim, or refuses to pay a reasonable settlement within the insurance coverage limits, the whole experience becomes frustrating and unfair. If a claim is not paid, an injury victim may not have the money to cover medical bills and other expenses incurred from a crash. Nonpayment can be devastating to the victim and to members of their families as well.

Many victims are caught off guard when the insurance they purchased to protect them is denied after an accident. You might think dealing with your own insurance company would be easy. Unfortunately, in some instances, an insurance company refuses to provide its own client with the required compensation. Often, the insurance company will deny a claim without explaining why.

An individual without an advocate representing their interests may have difficulty dealing with these insurance companies as they possess vast resources and enormous power. An attorney helps level the playing field and ensures your legal rights are protected throughout the process.  

Let Our Prescott Insurance Bad Faith Attorneys Help

Navigating through the complicated world of insurance requires knowledge and insight. Without knowing the proper way to proceed, success can be limited or altogether unlikely. However, having the correct knowledge of the right path to file for an insurance bad faith lawsuit can make or break your recovery.

If you’re suffering from the bad faith of an insurance company, find out how the expertise of one of Arizona’s leading personal injury and wrongful death firms can help you recover. Fill out the consultation form on our website or call the Jensen Phelan Law Firm directly at (928) 778-2660 to arrange your free consultation. Our bad faith lawyers are dedicated to fighting for the justice and compensation you deserve!