Matthew Millea

At Robbins Curtin Millea & Showalter, LLC (RCMS Law), our trial team handles workers’ compensation bad faith claims, a specialized area that often requires civil litigation experience, discovery, and trial readiness. 

 

This article explains what bad faith means, what it can look like, and what steps can help protect you if you believe an insurer isn’t playing fair.

What does “insurance bad faith” mean in Arizona?

Arizona law recognizes that insurance contracts include an implied covenant of good faith and fair dealing—in other words, the insurer must act honestly and fairly and cannot put its own interests first at your expense.

Importantly, Arizona courts have recognized that bad faith isn’t limited to a flat-out refusal to pay. Bad faith can exist when an insurer’s conduct damages the protection or security you purchased—even if the company ultimately pays something.

Arizona’s jury instructions (used to guide juries in civil cases) describe the duty this way: insurers must give as much consideration to the insured’s interests as they give to their own while investigating, evaluating, and processing a claim. 

 

Common examples of bad faith conduct

Bad faith is very fact-specific, but patterns show up again and again. In workers’ compensation bad faith, RCMS Law highlights examples like:

• Wrongful denial of valid claims

• Misrepresentation of policy terms

• Unjustified delays in medical treatment or wage benefits

Arizona also has a statute addressing unfair claim settlement practices, including things like misrepresenting pertinent facts or policy provisions, failing to respond promptly, failing to adopt reasonable standards for prompt investigation, or refusing to pay without a reasonable investigation

Bad faith may show up as:

• “We never got your paperwork” (repeatedly), with shifting requirements

• Long delays with no meaningful explanation

• Selective reading of medical records (ignoring what supports your claim)

• Lowball offers that don’t match the documented loss

• Inconsistent reasons for denial (moving target explanations)

Not every mistake is bad faith. Arizona courts recognize that isolated errors (misfiled paperwork, a one-off processing mistake) may be contract problems without rising to bad faith—context matters.

Workers’ compensation bad faith in Arizona: yes, it can be a civil case

Workers’ comp is its own system, and many people assume the insurer can’t be sued because workers’ comp is “exclusive.” In Arizona, however, courts have recognized common-law bad faith actions against workers’ compensation carriers in appropriate circumstances.

That distinction matters because workers’ comp bad faith cases can require civil litigation tools (discovery, depositions, expert work, trial strategy) that go beyond what’s typical in the workers’ comp administrative process—which is one reason RCMS Law often partners with referring counsel while focusing on the bad faith portion of the case.

 

What to do if you suspect bad faith

If you believe an insurer is mishandling your claim, a few steps can help protect you (and preserve evidence):

1. Get everything in writing
   Save letters, emails, claim portal screenshots, voicemails, and notes of every phone call (date/time/name/summary).

2. Ask for the specific reason—tied to the policy or claim file
   If you receive a denial or delay, request a written explanation of what information they relied on and what they say is missing.

3. Document delays and their impact
   Keep records of missed work, out-of-pocket medical costs, canceled procedures, and provider notes showing the consequences of delayed authorization.

4. Be careful with recorded statements and broad releases
   Insurers may request statements or authorizations that go far beyond what’s needed. If you’re unsure, it’s worth getting legal advice before signing.

5. Talk to a trial-ready bad faith team early
   Bad faith cases often turn on process: what the insurer knew, when they knew it, and whether they acted reasonably. Early review can prevent harmful missteps.

Why these cases are different (and why experience matters)

Insurance bad faith cases aren’t just about the underlying injury or loss—they’re about the insurer’s conduct: claim handling decisions, internal guidelines, adjuster notes, medical review practices, and settlement strategy. That’s why RCMS Law emphasizes its trial experience and precedent-setting work in this niche, particularly in workers’ comp bad faith matters. 

 

Talk with RCMS Law

If you believe an insurance company has unreasonably delayed, denied, or underpaid your claim—especially in a workers’ compensation bad faith situation—RCMS Law can help you understand your options and what next steps may make sense.

This blog is for general informational purposes and is not legal advice. Every case is different, and outcomes depend on specific facts and applicable law.