It is time to speak with a Scottsdale insurance bad faith attorney if your insurance company is attempting to use any of the following to justify or excuse its payment of an insurance claim:

1. There was an ambiguity in the way the insurance policy was written, so the insurance company didn’t believe it was obligated to pay on the claim.

The insurance company drafts these insurance policies and any ambiguity will be construed against it as the draftsman. Claiming that its own policy was too ambiguous for it to fulfill its obligation is not a winning defense. If insurance companies were permitted to escape liability with that thinly veiled argument, then insurance companies would concentrate their efforts on writing nothing but ambiguous policy provisions to avoid paying insurance benefits on any claims.

2. The insurance company acted in accordance with what is customary in the insurance industry, so it didn’t pay on the claim.

Defending itself because that’s what everyone else does is a questionable defense at best.  Although acting in accordance with what is customary in the insurance industry could be useful in determining whether this insurer intentionally acted in bad faith, it is by no means an absolute, or complete, defense to liability for the improper failure to timely pay owed insurance benefits.

3. The law as applied to these circumstances is an unsettled matter, so the insurance company could not act on the claim.

Sometimes the law as applied to the particular circumstances is still an unsettled matter and insurance companies rely on this to force the insurance consumer to take action (or back down). A lawsuit for declaratory judgment on a question of the law may not in itself be an act of insurance bad faith. However, depending upon the circumstances, e.g., the insurance company effectively left the insurance consumer with no other option but to litigate the unsettled legal question, the insurance company’s conduct may be considered to have breached the duty of good faith and fair dealing.

4. Allegation that you as the insurance consumer breached the duty of good faith and fair dealing, so the insurance company isn’t liable for its failure or refusal to properly handle the claim.

Arizona law currently does not recognize comparative breaches of the duty of good faith and fair dealing. The insurance relationship is based on a contract, the insurance policy. Both parties – insured and insurer – to the agreement have obligations to the other party. The insurance policy holder must reasonably cooperate with the insurance company’s investigation of the claim.  This is known as the cooperation clause of the insurance policy. If the insurance policyholder does not reasonably cooperate, this could reduce or eliminate the insurance company’s obligation to pay the insurance benefits.  However, the insurance company’s obligation to still handle the insurance claim in good faith and fairly is not excused.

If your insurer has rejected your Arizona insurance claim, has delayed or failed to investigate your claim, has offered you a small settlement that is below what you are deserving of, or has otherwise engaged in acts of that might be considered bad faith, then you need to seek experienced legal representation.

Being prepared to aggressively argue against every defense, justification, or excuse that the insurance company will offer is a vital component of the Scottsdale insurance bad faith attorney’s legal strategy. These insurance cases can be very complex and technical in nature, so having experienced counsel is important if you hope to achieve the best possible outcome with your insurance claim. If you have any suspicions that your insurance company is acting improperly, then contact the Law Offices of Shane L. Harward immediately by calling 480.874.2918 for your Free confidential telephone consultation. No one should feel like a victim of their own insurance company!