Delilah R. Corona, et al. v. State Farm Mutual Automobile Insurance Company

Little Rock, Arkansas insurance law lawyer represented the Plaintiff who sued the Defendant on a bad faith breach of insurance contract theory.



"Arkansas law defines bad faith breach of an insurance contract as an insurance company's unreasonable refusal to pay a valid claim. An insurance company may be found to have acted in bad faith if it:



Denies a valid claim without a reasonable basis.

Fails to investigate a claim reasonably.

Unreasonably delays paying a claim.

Offers a settlement that is clearly inadequate.



To prove bad faith breach of an insurance contract in Arkansas, an insured person must show the following four elements:



The insurance company owed a duty of good faith to the insured person.

The insurance company breached that duty of good faith.

The insured person suffered an injury.

The insurance company's breach of duty caused the insured person's injury.



Examples of bad faith breach of an insurance contract in Arkansas include:



Denying a claim based on a technicality, even though the insurance company knows that the claim is valid.

Refusing to pay a claim because the insurance company does not want to set a precedent.

Unreasonably delaying paying a claim in order to force the insured person to settle for less than what they are owed.

Offering a settlement that is clearly inadequate, given the extent of the insured person's losses.



If an insured person can prove bad faith breach of an insurance contract, they may be entitled to recover damages for their economic losses, such as the amount of the unpaid claim, as well as for their emotional distress. In some cases, the insured person may also be entitled to punitive damages.



If you believe that your insurance company has acted in bad faith, you should consult with an experienced attorney to discuss your legal rights and options."



Google Bard

Joint motion to dismiss granted.