Similar to other states, Arizona has adopted unfair claims settlement practices statutes and regulations. While one cannot a bring a private cause of action under the Unfair Claim Settlement Practices Act^{1<\/sup> and its companion regulations, they lay out specific standards for insurers to promptly investigate and process claims.<\/p>\n}

Under the Act, insurance carriers are expected implement reasonable standards for the prompt investigation of all claims brought under a policy.^{2<\/sup> This includes acting reasonably and promptly upon communications relating to insurance claims.3<\/sup><\/p>\n}

An insurer may not refuse to pay claims without conducting a reasonable investigation, and must affirm or deny coverage within a reasonable time following submission of the proof of loss.^{4<\/sup> Insurer\u2019s may not misrepresent facts or insurance policy provisions and must attempt in good faith to effectuate prompt and fair settlements of claims once liability becomes reasonably clear.5<\/sup><\/p>\n}

Property insurers may not restrict the assignment of a loss or claim after the loss has occurred.^{6<\/sup><\/p>\n}

The investigation or payment of claims may not be delayed for the purpose of requesting preliminary claim reports followed by subsequent formal proofs of loss.^{7<\/sup> Insurers may not force their insureds to initiate litigation to recover amounts owed under the policy by offering substantially less.8<\/sup><\/p>\n}

Once liability has become reasonably clear, an insurer must promptly settle claims under that section of the insurance policy.^{9<\/sup><\/p>\n}

When paying claims, the payment must be accompanied by a statement describing the coverage under which the payment is being made.^{10<\/sup> If an insurer is denying a claim or offering a compromise settlement, they must promptly provide a reasonable explanation of the basis relative to the facts or applicable law.11<\/p>\n}

<\/a>___________________________
\n^{1<\/sup> Ariz. Rev. Stat. Ann. \u00a7 20-461 (D)
\n2<\/sup> Ariz. Rev. Stat. Ann. \u00a7 20-461 (A)(3)
\n3<\/sup> Ariz. Rev. Stat. Ann. \u00a7 20-461 (A)(2)
\n4<\/sup> Ariz. Rev. Stat. Ann. \u00a7 20-461 (A)(4); Ariz. Rev. Stat. Ann. \u00a7 20-461 (A)(5)
\n5<\/sup> Ariz. Rev. Stat. Ann. \u00a7 20-461 (A)(1); Ariz. Rev. Stat. Ann. \u00a7 20-461 (A)(6)
\n6<\/sup> Ariz. Rev. Stat. Ann. \u00a7 20-461 (A)(7)
\n7<\/sup> Ariz. Rev. Stat. Ann. \u00a7 20-461 (A)(13)
\n8<\/sup> Ariz. Rev. Stat. Ann. \u00a7 20-461 (A)(8)
\n9<\/sup> Ariz. Rev. Stat. Ann. \u00a7 20-461 (A)(14)
\n10<\/sup> Ariz. Rev. Stat. Ann. \u00a7 20-461 (A)(11)
\n11<\/sup> Ariz. Rev. Stat. Ann. \u00a7 20-461 (A)(15)<\/p>\n","protected":false},"excerpt":{"rendered":"}

Similar to other states, Arizona has adopted unfair claims settlement practices statutes and regulations. While one cannot a bring a private cause of action under the Unfair Claim Settlement Practices Act1 and its companion regulations, they lay out specific standards for insurers to promptly investigate and process claims.<\/p>\n","protected":false},"author":36,"featured_media":25751,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"content-type":"","footnotes":""},"categories":[247],"tags":[31,33,4,41],"class_list":["post-26618","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-arizona","tag-claims-handling","tag-good-faith-claims-handling","tag-insurance","tag-regulation"],"acf":[],"yoast_head":"\n