from our blog

July 27, 2026

Arizona Does Not Recognize True Third-Party Bad Faith Claims Like Some Other States

Our office will occasionally receive a contact that goes something like this: “I was in an accident. The other driver was at fault. The other driver’s insurance company is not treating me fairly, and I want to sue them for bad faith.” In some states, that is possible. Arizona is not one of those states. […]

Duty to Defend One Claim Means an Insurer Must Defend Entire Lawsuit in Arizona

When an insurer’s policy requires that it defend the insured for one type of legal claim, Arizona law requires that the insurer defend against all claims in the lawsuit. This is also known as the “in for one in for all rule.” This means that if an individual sues an insured alleging 30 claims, but […]

Role of Bad Faith Insurance Lawsuits in Improving Insurer Policies

When an insurance company unfairly refuses to pay an insurance policyholder for a legitimate insurance claim, the insurance policyholder can sue the insurer for damages that can potentially amount to much more than insurance benefits owed under the policy. Victims of insurance bad faith may be entitled to recover consequential damages, emotional damages, attorneys’ fees and, […]

Arizona Court of Appeals Gives Guidance on Negligent Misrepresentation and Insurance Consumer Fraud

In the case of Larkey v. Health Net Life Insur. Co., (June 2012) the insured, Alan Larkey, had a policy with Blue Cross Blue Shield for personal health insurance. However, Larkey decided that he wanted to switch providers to get a lower deductible without compromising his coverage. Larkey had a family member research health insurance […]

Federal Court Says Bad Faith Insurance Denial Can be Brought Against Insurance Adjuster

A recent federal district court case tackled the issue of whether an Arizona insurance adjuster may be personally sued for bad faith insurance claim denial. The case started on March 4, 2011 when Frank Gambrell collided with another vehicle on an Arizona freeway. Gambrell sustained serious injuries in the accident; his medical expenses totaled more […]

Negligence Claims Against Insurance Agents Are Assignable in Arizona

Since 2008 professional negligence claims against insurance agents have been assignable to others in Arizona. In Webb v. Gittlen, 174 P.3d 275 (2008) the Arizona Supreme Court overturned the longstanding principal that professional negligence lawsuits cannot be assigned to others. In the Gittlen case, liquor store owners purchased liability insurance from a Hartford Casualty Insurance […]

Duty to Indemnify for Economic Losses in Commerical Insurance

Commercial General Liability or General Commercial Liability (“CGL” or “GCL” respectively) insurance is designed to protect businesses from a wide range of risks that could potentially threaten a company’s survival. One common area of dispute between insurers and insurance consumers in these kinds of agreements is whether purely economic risks are covered. In Desert Mountain Properties Limited […]

Homeowner’s Insurance Appraisal Process

The term “appraisal” as defined in a homeowner’s insurance policy has an entirely different meaning than the one more commonly used in every day language. Normally when we hear the term appraisal, we think of a real estate appraisal that is used to determine the value of a home. However, in a homeowner’s insurance policy, […]

Ninth Circuit Allows Securities Claim in Insurance Bad Faith Lawsuit

Earlier this year the Ninth Circuit held that the Securities Litigation Uniform Standards Act of 1998 (SLUSA) does not preclude state class actions alleging breach of contract and insurance bad faith . Freeman Investments, LP v. Pacific Life Insurance Co., No. 09-55513, 2013 WL 11884 (9th Cir. Jan 2, 2013). In Freeman the Plaintiffs purchased variable universal life insurance […]

State Farm v. Campbell Should Be Revisited – Punitive Damages in Insurance Bad Faith Claims

Punitive damages are monetary awards given to plaintiffs in addition to special and general damages. Punitive damages are designed to punish insurers and other defendants for bad conduct or to deter the defendant and others from similar misconduct in the future. Compensatory damages on the other hand are designed only to pay for the actual harm […]

Arizona Allows Accident Victims to Claim Liability and UIM coverage from Two Separate Policies Although With Same Insurance Company

Arizona law requires all insurers who provide motor vehicle liability coverage to also offer Uninsured (UM) and Underinsured Motorist Insurance (UIM) in the same amount as that provided by liability coverage. UIM coverage provides protection for automobile collisions and accidents in which the offending motorist does not carry enough coverage to pay the damages incurred by the […]

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