05 Apr Insurance Bad Faith & Your Rights: FAQs (Pt. 1)
Insurance is supposed to provide people with a safety net in the event that accidents or other events happen. While you may have insurance for your vehicle, home, health, etc. – and while you may have been diligent about paying your premiums on time, unfortunately, insurance companies:
Do not always honor the policies they issue
- May try to find minor reasons to undervalue or deny policyholders’ claims
- Can act in bad faith in an attempt to preserve their own profits at policyholders’ expense.
Given that insurance bad faith can take many forms, this blog series will be devoted to answering some common questions about these types of cases. While the answers herein are intentionally general (to be as widely applicable as possible), you can easily get specific answers about your rights and case by contacting a trusted Phoenix personal injury lawyer at the Law Office of Richard Langerman.
Our attorneys are dedicated to the pursuit of justice, and they will work relentlessly to help you succeed in your financial recovery if you have been the target of insurance bad faith practices.
Answers about Insurance Bad Faith & Your Rights
Q – What is insurance bad faith?
A – Insurance bad faith refers to any practice used by an insurance company to wrongfully deny or grossly undervalue a policyholder’s legitimate claim. Essentially, bad faith can be considered to be a form of breach of contract, as an insurance policy is basically a contract between an insurer and a policyholder.
In Arizona, the law generally deems the following practices to be forms of insurance bad faith:
- Failing to give due consideration to policyholders’ interests – In fact, Arizona law requires that insurers give policyholders’ interests at least the same consideration they take with their own interests.
- Unreasonably stalling claim investigations and/or decisions, as insurers are required to promptly review and issue decisions for all submitted claims
- Automatically denying all claims without conducting any review or investigation of them.
Keep in mind, however, these are not the only forms of insurance bad faith in Arizona (they are just some of the most common examples of it).
Q – What are some common signs of bad faith that I should know?
A – Although insurance bad faith can come in many forms, some common signs of it include (but are by no means limited to):
- Delaying the investigation of claims
- Failing to conduct investigations in an unbiased manner
- Prolonging payments on valid claims once decisions have been rendered
- Refusing to pay policyholders the full value of their claims
- Interpreting the language of insurance policies in unreasonable ways to try to limit or deny payouts on valid claims
- Outright denying valid claims with no or minimal investigation.
For some more answers regarding insurance bad faith and your rights, be sure to check out the additional parts of this blog series. They will be published soon.
Phoenix Personal Injury Lawyer at the Law Office of Richard Langerman
If you have been subjected to insurance bad faith practices, an experienced Phoenix personal injury lawyer at the Law Office of Richard Langerman will fight to help you obtain the maximum possible compensation to cover your pain and suffering, lost wages, and medical bills
To set up a free, no obligations initial consult with a Phoenix personal injury lawyer, call us today at (602) 240-5525 or send us an email using the contact form at the bottom of this page.
From our offices in Phoenix, we provide superior legal services and representation to clients throughout the state of Arizona.