How Life Insurance Lawyer Now. Com Gets Your Arizona Life Insurance Claim PAID NOW.

When a life insurance company takes too long to investigate a claim, or denies paying out on a life insurance claim, or is about to pay someone else instead of you, most people have a sense of loss and a heavy weight on their shoulders.  Not only have they lost a loved one, a family member, but now a major life insurance company is doing everything it can to avoid paying your claim.  At times like these, we are here to help get your life insurance claim paid.  If your claim is made in Arizona, or Arizona law applies, we can help.

Under Arizona law, life insurance companies are bound by both statutory (written law) and common law (court cases throughout the years) principles to pay life insurance claims without excessive delay. The duties of insurers in this context are rooted in the implied covenant of good faith and fair dealing, which obligates insurers to act reasonably and promptly in processing and paying valid claims.  The Arizona law and cases require prompt payment of life insurance claims, fair investigations, and clear communications.  A life insurance company needs to pay a claim if it can, and cannot delay a life insurance claim payment for excessive investigation.

The Implied Covenant of Good Faith and Fair Dealing

The implied covenant of good faith and fair dealing is a fundamental principle in Arizona insurance law. It requires insurers to treat their policyholders fairly and to refrain from actions that would deprive the insured of the benefits of the policy. This duty encompasses the obligation to investigate claims thoroughly and promptly, to communicate effectively with the insured, and to pay valid claims without unreasonable delay.

In the context of life insurance claims, the covenant of good faith and fair dealing is breached when an insurer delays or denies payment of benefits without a reasonable basis. Courts in Arizona have consistently held that an insurer’s failure to act in good faith can give rise to both contractual and tort liability.  These are strong tools for your life insurance lawyer now.com to use to get your claim paid.  For example, in cases where an insurer’s delay in payment is found to be unreasonable or without proper cause, the insured or their beneficiaries may be entitled to recover not only the policy benefits but also consequential and punitive damages.

Some Arizona Laws that Support the Work of LifeInsuranceLawyerNow.com

Arizona Revised Statutes (A.R.S.) Title 20 governs insurance practices in the state. Several provisions within this title are relevant to the duties of life insurance companies in processing and paying claims:

A.R.S. § 20-461: This statute prohibits unfair claim settlement practices, including failing to acknowledge and act reasonably promptly upon communications regarding claims, failing to adopt and implement reasonable standards for the prompt investigation of claims, and not attempting in good faith to effectuate prompt, fair, and equitable settlements of claims in which liability has become reasonably clear.

A.R.S. § 20-443: This provision addresses misrepresentation and false advertising of insurance policies. While it primarily focuses on the marketing and sale of insurance, it underscores the broader duty of insurers to act honestly and transparently in their dealings with policyholders.  The life insurance claim in Arizona must be paid if it can be paid on the evidence the insurance company has in the claim, and paid consistent with the advertisements of the life insurance company.

A.R.S. § 20-448: This statute prohibits discrimination in the payment of claims. It ensures that insurers do not delay or deny claims based on factors unrelated to the validity of the claim, such as the insured’s race, gender, or national origin.

These statutory provisions establish a baseline for the conduct of insurers in Arizona. Violations of these statutes can result in regulatory penalties, civil liability, or both.

Case Law Analysis

Arizona courts have addressed the duties of insurers to pay claims without excessive delay in several cases. While the specific context of life insurance claims may vary, the principles established in these cases are broadly applicable.

Rawlings v. Apodaca, 151 Ariz. 149 (1986): This landmark case established the standard for bad faith in Arizona insurance law. The Arizona Supreme Court held that an insurer acts in bad faith when it intentionally denies, fails to process, or delays payment of a claim without a reasonable basis. The court emphasized that the insurer’s duty of good faith requires it to give equal consideration to the interests of the insured and to avoid placing its own financial interests above those of the policyholder.

Zilisch v. State Farm Mutual Automobile Insurance Co., 196 Ariz. 234 (2000): In this case, the court reiterated that an insurer’s duty of good faith includes the obligation to conduct a prompt and adequate investigation of claims. The court found that an insurer’s failure to investigate a claim thoroughly or to evaluate it fairly could constitute bad faith, even if the insurer ultimately paid the claim.

Deese v. State Farm Mutual Automobile Insurance Co., 172 Ariz. 504 (1992): The court in this case clarified that an insurer’s duty of good faith is independent of its contractual obligations. This means that an insurer can be held liable for bad faith even if it ultimately fulfills its contractual duty to pay the claim, provided that its conduct in handling the claim was unreasonable or unfair.

Nardelli v. Metropolitan Group Property and Casualty Insurance Co., 230 Ariz. 592 (2012): This case involved allegations of bad faith arising from an insurer’s delay in paying a claim. The court held that an insurer’s delay in payment could be deemed unreasonable if it was not based on a legitimate dispute over coverage or the amount of the claim. The court also emphasized the importance of clear and timely communication with the insured during the claims process.

The “Reasonableness” Standard

A key issue in determining whether a life insurance company has breached its duty to pay a claim without excessive delay is the reasonableness of the delay. Courts consider several factors in evaluating the reasonableness of an insurer’s conduct, including:

– The complexity of the claim and the time required to investigate it.
– The insurer’s efforts to communicate with the insured or their beneficiaries.
– The existence of any legitimate disputes over coverage or the amount of the claim.
– The insurer’s adherence to industry standards and regulatory requirements.

In cases where the delay is attributable to the insurer’s failure to investigate the claim adequately or to process it in a timely manner, courts are more likely to find that the delay was unreasonable. Conversely, if the delay is due to factors beyond the insurer’s control, such as the need to obtain additional information from the insured or third parties, the delay may be deemed reasonable.

Consequences of Unreasonable Delay

When a life insurance company unreasonably delays payment of a claim, it may face several consequences:

Breach of Contract: The insurer may be held liable for breach of contract if it fails to fulfill its obligation to pay the policy benefits in a timely manner.

Bad Faith Liability: If the delay is found to be unreasonable and without proper cause, the insurer may be liable for bad faith. This can result in the award of compensatory damages, including emotional distress and economic losses, as well as punitive damages designed to deter similar conduct in the future.

Regulatory Penalties: Violations of Arizona’s insurance statutes can result in regulatory penalties, including fines and sanctions imposed by the Arizona Department of Insurance.

Attorney’s Fees and Costs: In some cases, the insured or their beneficiaries may be entitled to recover attorney’s fees and costs incurred in pursuing the claim.

Practical Implications for Insurers

To avoid liability for unreasonable delays in paying life insurance claims, insurers should adopt and implement best practices for claims handling, including:

– Conducting a thorough and prompt investigation of claims.
– Communicating clearly and regularly with the insured or their beneficiaries.
– Documenting all actions taken during the claims process.
– Ensuring that claims decisions are based on a reasonable evaluation of the evidence.
– Training claims personnel to comply with legal and regulatory requirements.

By adhering to these practices, insurers can minimize the risk of disputes and ensure that they fulfill their obligations to policyholders in a fair and timely manner.

Under Arizona law, life insurance companies have a duty to pay claims without excessive delay. This duty is grounded in the implied covenant of good faith and fair dealing, as well as statutory provisions that prohibit unfair claim settlement practices. Courts in Arizona have consistently held that insurers must act reasonably and promptly in processing and paying claims, and that unreasonable delays can give rise to liability for breach of contract, bad faith, and other legal consequences. By understanding and adhering to these legal principles, insurers can fulfill their obligations to policyholders and avoid the pitfalls of bad faith litigation.

We are available in Scottsdale Arizona, Tempe Arizona, Tuscon Arizona, and Phoenix Arizona by appointment and available virtually.  We are here to help with your life insurance claim and life insurance benefit questions.  We often with with

We have done this a lot.  We take the time to know you and your case.  We start working for you NOW.  We communicate with you, respond to your calls, are available to you.  We focus on how to win your case.  If you have a problem getting your life insurance claim paid, rescission, beneficiary disputes, or your policy has been cancelled or has other issues on it, you need to contact Life Insurance Lawyer NOW.com or life insurance justice.com.  Use the form on our site, or email us, or call (888) 997-4070 or (818) 937-0937 to speak directly to an experienced life insurance lawyer.   We are the best life insurance lawyers around, and we are real lawyers, not a lawyer referral service or “middleman”, and we are nice to work with, too; we are here for you NOW.