AZ Common Law Causes of Action BREACH OF THE IMPLIED COVENANT OF GOOD FAITH AND FAIR DEALING – TORT (2011)

• Jurisdiction: Arizona

BREACH OF THE IMPLIED COVENANT OF GOOD FAITH AND FAIR DEALING – TORT

Elements

“To show a claim for bad faith, a plaintiff must show the absence of a reasonable basis for denying benefits of the policy and the defendant’s knowledge or reckless disregard of the lack of a reasonable basis for denying the claim. It is apparent, then, that the tort of bad faith is an intentional one.” Noble v. Nat’l Am. Life Ins. Co., 128 Ariz. 188, 190, 624 P.2d 866, 868 (1981).

“In short, the implied covenant of good faith and fair dealing requires that an insurer treat its insured fairly in evaluating claims.” Deese v. State Farm Mut. Auto. Ins. Co., 172 Ariz. 504, 507, 838 P.2d 1265, 1268 (1992).

Proof

“The appropriate inquire is whether there is sufficient evidence from which reasonable jurors could conclude that in the investigation, evaluation, and processing of the claim, the insurer acted unreasonably and...