In my previous blog I discussed how in Arizona, if a policyholder submits a claim that is deemed late, the insurance company cannot deny the claim on that basis unless it can show actual prejudice from the delay. Now, what happens when the policyholder files a lawsuit after the statute of limitations has already expired? Is the policyholder’s lawsuit automatically barred? The short answer is no.
In practically every insurance policy, a policyholder is required to give prompt notice of the claim before the insurance company has any responsibility to act on the claim.
What happens if the policyholder substantially delays in giving notice of the claim, or in some circumstances, fails to give notice altogether? Is the policyholder’s claim automatically barred or forfeited?
Arizona hail damage losses are being hotly litigated by the insurance industry. Last week, Farmers was hit with a $1,904,000 punitive damage verdict for failing to adjust a hail damage claim in good faith. The compensatory damages were $952,000.
In Arizona, insurance contracts include an implied covenant of good faith and fair dealing requiring the insurer to refrain from any conduct that would impair the benefits or rights expected from the insurance contract.1
Continue Reading An Introduction to Arizona First-Party Bad Faith
In Arizona, the law permits insurance companies to contractually shorten the statute of limitations period by which the policyholder must file suit.
The Yarnell Hill wildfire currently burning in an area 85 miles north of Phoenix continues to rage on with minimal containment. So far, it has burned over 8,000 acres and has destroyed about 50 homes and is threatening about 250 others.
We have opened an Arizona office in the Phoenix area. Monica Lindstrom is heading our efforts there. The primary reason for the office is to help policyholders with hail storm damage claims which are disputed by insurance companies.
Most of my blog posts are about hurricanes, roof leaks and fires This week I write about a theft claim submitted under a property insurance policy. American Pepper was a business insured under a policy with Federal Insurance Company. When property was stolen from American Pepper, notice of the loss was given to Federal. After its investigation, Federal sent a letter denying the claim under the concealment and misrepresentation provisions in the policy.