When an insurance company unreasonably denies your claim or otherwise acts in bad faith, an attorney who has regularly advised and represented clients in bad faith insurance matters can help you achieve a cost-effective and timely resolution. To learn more about our legal services, contact our firm to schedule a consultation and case evaluation with an experienced insurance attorney.
Experienced Insurance Bad Faith Lawyers in Arizona
The attorneys at Surrano Law Offices, based in Phoenix, have decades of experience handling complex insurance disputes. A plaintiff's insurance bad faith law firm with nationwide reach, we assist clients statewide in Arizona and associate with other attorneys across the United States. Whether your challenge involves disability, homeowners, health, life, or another form of insurance, we can help. To learn more about insurance bad faith and your legal rights, contact us at 877-288-8230.
Thank you for contacting Surrano Law Offices, A Professional Corporation. Your message has been sent.
Call us now
or use the form below.
Principal attorney Charles Surrano and associate John Wilborn bring knowledge and perspective from a range of roles in insurance litigation to each case. Surrano Law Offices evaluates, prepares and pursues matters arising from wrongful claim denials, delays in payment, agent errors, underpayment, inadequate investigation, misrepresentation and other forms of insurance bad faith.
A disability claim denial or other insurance problem can be confusing and devastating. Our lawyers can explain the legal protections you may have and help you make sound decisions, whether you reside in Arizona or another state such as California, Florida, Kentucky, Nevada, new Mexico, North Carolina or Ohio.
Defining Bad Faith
There are a number of actions and omissions that amount to bad faith on the part of the insurance company. One example of bad faith is an insurer's unreasonable denial of an insurance claim. Another example is an insurer's wrongful failure to defend the insured in a suit by an injured third party. The following article briefly explains first-party and third-party bad faith and sets forth several examples of conduct that courts have held constituted bad faith. If you believe that your insurance company has acted in bad faith in handling your claim, talk to an attorney at Surrano Law Offices, A Professional Corporation in Phoenix, Arizona, who has experience handling bad faith claims.
First-Party Bad Faith
About one-half of the states recognize a common law tort for bad faith in first-party insurance claims. Of these, most follow the more narrow approach of the Wisconsin Supreme Court in Anderson v. Continental Insurance Co., which requires the plaintiff to show the insurer was unreasonable in denying the claim and the insurer's "knowledge or reckless disregard of the lack of a reasonable basis for denying the claim." The other states follow the approach the California Supreme Court took in Gruenberg v. Aetna Ins. Co., which only requires the plaintiff to show unreasonableness in denying the claim. Claims for first-party bad faith are commonly based on inadequate claim processing, improper investigation of a claim, delay in payment and unreasonable denial of a claim.
Third-Party Bad Faith
Liability insurance policies, such as those found in automobile and homeowner insurance policies, apply to claims against the insured by third parties. Liability insurance is also known as third-party coverage. Liability policies set forth the insurer's duties, which typically include paying covered claims, investigating claims and defending the insured in claims by third parties that fall within the scope of the policy. Third-party bad faith claims usually relate to an insurer's failure to settle an underlying suit (for example, by an injured party) against the insured; the insurer's wrongful failure to defend a suit against the insured; or the insurer's bad faith or negligence in defending the insured.
Examples of Unreasonable Claim Settlement Practices
In almost every state, laws exist that define unfair claim settlement practices. Courts have labeled the following actions by insurers as bad faith:
- Misrepresenting pertinent facts or policy provisions relating to coverage
- Failing to acknowledge or act with reasonable promptness in response to communications related to claims
- Failing to adopt and implement reasonable standards for prompt investigation of claims
- Failing to approve or deny coverage of claims within a reasonable time after adequate proof of the loss has been submitted
- Failing to, in good faith, effect prompt, fair and equitable settlement of claims in which liability is reasonably clear
- Unreasonably failing to protect the assets of a policyholder who is sued
- Attempting to settle a claim for less than the amount to which the insured is entitled
- Obviously putting an insurer's financial interests above the interests of the policyholder
- Failing to promptly settle some claims in order to influence settlements under another portion of the insurance policy coverage
- Unreasonably attempting to undervalue a claim
- Failing to promptly offer reasonable explanation for denial of the claim
- Making threats, false accusations or oppressive demands on the insured
- Exploiting the insured's vulnerable position
- Abusing the arbitration process
- Unfairly raising premiums for filing a claim
- Wrongfully cancelling or failing to renew a policy
Conclusion
Your insurer has a responsibility to resolve your claim in good faith. If you believe you have a right to recover for the bad faith denial of a claim, contact an experienced insurance attorney at Surrano Law Offices, A Professional Corporation in Phoenix, Arizona, to discuss your options.
Copyright ©2009 FindLaw, a Thomson Business
DISCLAIMER: This site and any information contained herein are intended for informational purposes only and should not be construed as legal advice. Seek competent legal counsel for advice on any legal matter.
