Progressive, one of the most successful insurance companies covering property and casualty insurance in the United States, is also one of the largest car insurance companies. The company got off the ground by insuring high-risk drivers. They now have written over 13 million policies in the U.S.
Often, policyholders are dismayed to find out that Progressive Insurance routinely offers ridiculously unfair settlement offers to clients who deserve so much more. Their customers have trusted them by paying regular insurance premiums for years, and when they need them, the company betrays them. Injured claimants are offered low settlement offers, or they may deny the claim altogether.
Your Progressive agent may drag their feet, prolong the process, or defend against claims that they should pay without question. If you have been given the runaround from the Progressive insurance company, they may be acting in bad faith. It is in your best interest to contact an Arizona bad-faith insurance lawyer.
Bad Faith Insurance Practices in Arizona
Insurance companies in Arizona are expected to comply with the covenant of good faith and fair dealing. This simply means that your insurance company, Progressive Insurance, in this case, is required to be fair, open, honest, and in good faith so that their clients are given the benefits they promised the people they insured when their insurance contracts were signed. A failure to comply could mean a breach in the implied covenant of good faith and fair dealing that should be expected and could lead to the insured filing a suit with the company for their bad faith practices.
The Arizona Unfair Claim Settlement Practices Act outlines the particular criteria of behavior that insurance companies must meet. When a company like Progressive Insurance fails to meet the standards here in Arizona, the Arizona Department of Insurance could act to protect insurance policyholders against bad-faith insurance practices. This act does not allow you a private right to pursue a lawsuit against the insurance company because of its failure to meet the standards laid out in Arizona.
Arizona Unfair Claim Settlement Practices Act’s Three Distinct Categories
Your insurance company may have acted inappropriately, and the Arizona Unfair Claim Settlement Practice Act may be used as a guideline to determine this. The regulations of this act can be divided into three separate categories: misrepresentations, claim responses, and investigations.
According to the Act, misrepresentations are prohibited, which means that relevant facts or provisions from the policy should not be misrepresented. The insurance company should not inflict additional requirements on the policyholder not already defined in the policy. They should not present lowball offers or unreasonable settlements to provoke the insured party to pursue litigation.
The Arizona Unfair Claim Settlement Practices Act requires insurance companies to act promptly and reasonably, meaning they must accept or deny a claim within 15 working days of showing proof of loss. The insurance company is responsible for providing an explanation of why their claim was denied or an explanation of a settlement offer.
The Act means that insurance companies, like Progressive Insurance, cannot refuse to pay a claim without proper exploration of the evidence available. They have 30 days in which they must complete the investigation after receiving a notification of the claim. In specific circumstances, investigations need more time, which is understood.
In the course of an investigation, no evidence should be concealed or destroyed or documents altered or destroyed.
Pursue Legal Counsel Today
If you or someone you love is being treated unfairly by Progressive Insurance, contact Surrano Law Offices to determine if they are acting in bad faith. Our experienced lawyers can help you navigate the legal process to help you gain fair and proper compensation so that you are treated justly.