Category archive: Arizona

No Bad Faith for the Denial of Uncovered Losses

Summary: The insured’s assignee argued Occidental Fire & Casualty Company of North Carolina breached the covenant of good faith and fair dealing by refusing to defend and indemnify the insured against a claim regarding faulty construction of shower walls in a hotel. The District Court for Arizona found because the insurer did not defend the…

Reasonable Conduct Barred Arizona Bad Faith Claim

Summary: Boesel brought action against State Farm claiming bad faith when the insurer denied his claim for coverage. The District Court granted summary judgment finding Boesel failed to raise a genuine issue of material fact. The Ninth Circuit Court of Appeals affirmed. Boesel v. State Farm Fire & Cas. Ins. Co. Boesel, a State Farm…

Paying Just 10% of UIM Limits and Less Than 25% of Medical Expenses After a Head-On, Death-Causing Collision? No Bifurcation for You

Summary: A head-on collision between two vehicles killed all three occupants of the at-fault vehicle and severe injuries to Steven Bass (Bass), the sole occupant of the other vehicle, which was owned by Bass’ employer and covered by $1 million in underinsured motorist (UIM) benefits through Farm Bureau Financial Services (Farm Bureau).  After receiving $20,000…

Explorer Lost—Met Life Too

Summary: The Nardellis bought a Ford Explorer for over $35,000 and had it insured with Met Life. Ten months later, it was stolen and then found abandoned in Mexico with multiple interior, exterior, and engine damages. The Nardellis wanted the Explorer declared a total loss, but Met Life refused. An Arizona jury returned a “compensatory…

Arizona Requires Defense of Insured While Coverage Action Is Pending

Summary:  Insureds receive a jury trial about bad faith of insurers in not defending them while coverage action was pending and then decided against insurers. Lennar Corp. v Transamerica Ins. Co., 251 P.3d 421 (Ct. of Ap. AZ 2011) The plaintiff insureds in the underlying case were a group of related companies that developed and…

Admitting and Correcting Errors Saves Insurer

Summary: The United States District Court in Arizona held that an insurer, which admitted and rectified errors in calculation of the actual cash value of a homeowner’s property damage claim after the error was brought to its attention by the insured, did not commit bad faith. Echanove v. Allstate Ins. Co. 752 F.Supp.2d 1105 The…

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