When Insurers Deny Arizona Wrongful Death Claims

TL;DR

If an insurance company denies your wrongful death claim in Arizona, your first action should be to request a formal denial letter that clearly states the specific reasons for the rejection. Do not accept a verbal denial or sign any documents. Immediately gather all related paperwork, including the insurance policy, police reports, and medical records. The most critical step is to consult with an experienced Arizona wrongful death attorney. They can analyze the denial, explain your legal options, and build a strategy to challenge the insurer’s decision, whether through an appeal, a demand letter, or by filing a lawsuit before the state’s two-year statute of limitations expires.

Key Highlights

Get It in Writing: Always demand a formal, written denial letter from the insurance company.
Analyze the Reason: Carefully review the letter to understand the specific policy exclusions or legal arguments the insurer is using.
Gather Your Evidence: Collect every document related to the incident, the deceased, and your financial losses.
Do Not Communicate Further: Avoid giving recorded statements or accepting any small, initial settlement offers from the adjuster.
Consult an Attorney Immediately: An Arizona wrongful death lawyer can protect your rights and counter the insurance company’s tactics.
Mind the Deadline: Arizona has a strict two-year time limit (statute of limitations) to file a wrongful death lawsuit.

Losing a family member is a deeply painful experience, made even more difficult when the death was caused by someone else’s negligence or wrongful act. In Arizona, families seek a measure of justice and financial stability through wrongful death claims. According to the Arizona Department of Transportation, there were 1,186 motor vehicle crash fatalities in the state in a single recent year, many of which form the basis for such claims. These claims are intended to provide compensation for the immense losses families endure. However, insurance companies, which are for-profit businesses, often deny these valid claims, leaving families confused and without support.

The legal framework for these actions is defined by state law. Arizona Revised Statutes (A.R.S.) § 12-611 establishes a claim for wrongful death when a person’s death is “caused by a wrongful act, neglect or default” that would have allowed the deceased to file a personal injury lawsuit had they survived. Further, A.R.S. § 12-612 specifies who is eligible to file such a claim, including a surviving spouse, child, parent, or the personal representative of the deceased’s estate. Understanding these statutes is the first step in recognizing your rights when an insurer attempts to block your path to compensation.

An insurance denial is not a final judgment; it is the insurer’s opening position in a complex legal dispute. This rejection marks a critical point where the actions you take next will determine the future of your claim. Instead of accepting the denial, you can challenge it by understanding the insurer’s reasoning, building a strong case based on Arizona law, and asserting your family’s right to fair compensation. This process requires a methodical approach and a clear understanding of the legal avenues available to you.

Understanding Why Insurers Deny Wrongful Death Claims in Arizona

Insurance companies are financially motivated to minimize payouts. A wrongful death claim in arizona can represent a significant financial liability, so adjusters and their legal teams will scrutinize every detail to find a reason for denial. Understanding these common reasons can help you anticipate their arguments and prepare a stronger case.

Policy Exclusions and Lapses

Every insurance policy contains a section on exclusions, which lists specific circumstances under which coverage will not apply. An insurer may deny a claim by arguing the cause of death falls under one of these exclusions.

Intentional Acts: Most standard liability policies do not cover intentional harm. If the death resulted from a deliberate assault rather than negligence, the insurer might deny the claim based on an “intentional acts” exclusion.
Specific Exclusions: A commercial policy might exclude incidents that occur outside of business hours, or a homeowner’s policy might exclude injuries from certain dog breeds.
Policy Lapse: The most straightforward reason for denial is a lapsed policy. If the at-fault party failed to pay their premiums, their insurance coverage would not be active at the time of the incident, leaving no source for the claim.

Disputes Over Liability

The core of any wrongful death claim is proving that the policyholder was legally responsible (liable) for the death. Insurers frequently deny claims by disputing this fundamental point.

Denial of Fault: The insurer may argue their policyholder was not at fault at all. In a car accident case, they might claim the deceased was the one who ran a red light or was driving distractedly.
Shared Fault (Comparative Negligence): A more common tactic is to assign partial blame to the deceased. Arizona follows a “pure comparative fault” rule under A.R.S. § 12-2505. This means that even if the deceased was partially responsible, their family can still recover damages. However, the compensation is reduced by the percentage of fault assigned to the deceased. An insurer might deny a claim by arguing the deceased was 100% at fault, or they may make an unfairly low settlement offer based on an exaggerated percentage of fault.

Insufficient Evidence or Documentation

To approve a claim, an insurer requires clear proof that their policyholder’s actions caused the death and that the family suffered quantifiable damages. A denial can occur if the submitted claim lacks sufficient supporting evidence.

Lack of Causation: The insurer might concede their policyholder was negligent but argue that this proved negligence did not directly cause the death. For example, they could claim a pre-existing medical condition was the true cause of death, not the injuries from the accident.
Incomplete Medical Records: Failure to provide comprehensive medical records linking the injury to the death can lead to a denial.
No Proof of Damages: The claim must include documentation of financial losses, such as the deceased’s income records, funeral expenses, and medical bills. Without this proof, the insurer has a basis for rejection.

Procedural Errors and Missed Deadlines

Insurance policies have strict procedural requirements for filing a claim. A simple mistake can be enough for a denial.

Late Notification: Most policies require the policyholder to report an incident “promptly.” If there was a significant delay, the insurer might claim they were prejudiced in their ability to investigate.
Failure to Cooperate: If you fail to provide requested information or documentation in a timely manner, the insurer can deny the claim for non-cooperation.
Missed Filing Deadlines: While the legal statute of limitations is two years, an insurance policy may have its own, much shorter, deadline for formally submitting a claim.

Your Immediate First Steps After Receiving a Denial Letter

Receiving a denial letter can feel like a final blow, but it is actually the start of a formal process. The steps you take in the hours and days that follow are critical to preserving your right to challenge the decision.

Step 1: Demand a Formal Written Denial If an adjuster tells you over the phone that your claim is denied, do not accept it. Politely insist that they provide the denial in writing. A formal denial letter is a legal document that forces the insurer to state their official position. It should contain the specific reasons for the denial and reference the exact policy language or legal statutes they are relying on. This letter becomes a key piece of evidence for your attorney.

Step 2: Scrutinize the Denial Letter Once you have the letter, read it carefully. Do not just skim it. Identify the core reason for the denial. Is it a policy exclusion? A dispute over fault? A claim of insufficient evidence? Understanding their argument is the first step to dismantling it. Note any inconsistencies or vague reasoning, as these can be points of leverage later.

Step-3: Organize All Your Documentation Create a central file for everything related to the case. A well-organized file will be invaluable for your attorney and will prevent crucial information from being lost. Your file should include:

The complete insurance policy of the at-fault party, if you have it.
The formal denial letter.
The official police or incident report.
Photographs and videos from the scene of the incident.
The deceased’s death certificate, which lists the cause of death.
All medical records and bills related to the final injury or illness.
Proof of the deceased’s income (pay stubs, tax returns, employment contracts).
Receipts for funeral and burial expenses.
A copy of all emails, letters, and a log of any phone calls with the insurance company.

Step 4: Do Not Give a Recorded Statement or Sign Anything Insurance adjusters may call you after sending a denial, sometimes to “clarify” a few points or to offer a very small “nuisance value” settlement. They may ask for a recorded statement. Politely decline. The purpose of a recorded statement is to get you to say something that could be used against you. Similarly, do not sign any release forms or accept any checks, no matter how small, as cashing a check could be interpreted as settling the claim in full.

Arizona’s Wrongful Death Laws: What You Need to Know

A successful challenge to a denial is built on a strong foundation of state law. Arizona’s statutes provide clear rules on who can file a claim, the deadlines for doing so, and what must be proven in court. An insurance company knows that if you have a legally sound case, they face significant risk if the matter goes to trial.

Who Can File a Wrongful Death Lawsuit? (A.R.S. § 12-612)

Not just anyone can file a wrongful death claim. Arizona law restricts this right to a specific group of people who have been most affected by the loss. The eligible parties are:

The surviving spouse of the deceased.
A surviving child of the deceased.
A surviving parent or guardian of the deceased.
The personal representative of the deceased’s estate.

The personal representative (sometimes called an executor) can file the lawsuit on behalf of all beneficiaries, including the spouse, children, and parents. This is common when there are multiple family members who have a right to compensation.

The Critical Two-Year Statute of Limitations (A.R.S. § 12-542)

This is perhaps the most important rule in any wrongful death case. In Arizona, you have two years from the date of the person’s death to file a lawsuit. This is a strict deadline. If you miss it, the court will almost certainly dismiss your case, and you will lose your right to seek compensation forever. Insurance companies are well aware of this deadline. Sometimes, they will drag out the claims process with delays and requests for more information, hoping that an unrepresented family will miss the statute of limitations. This is a primary reason why you should contact an attorney long before the two-year mark approaches.

Proving the Elements of a Wrongful Death Claim

To win a wrongful death case in Arizona, you must prove four specific legal elements:

Duty of Care: You must show that the defendant (the at-fault party) owed the deceased a legal duty to act with reasonable care. For example, all drivers have a duty to obey traffic laws and drive safely to protect others on the road.
Breach of Duty: You must prove that the defendant breached this duty through a negligent or intentional act. A drunk driver, a doctor who misdiagnoses a condition, or a property owner who fails to fix a dangerous hazard have all breached their duty of care.
Causation: You must establish a direct link between the defendant’s breach of duty and the person’s death. The death must be a foreseeable result of the defendant’s actions.
Damages: You must demonstrate that the death resulted in specific, compensable losses for the surviving family members.

Wrongful Death vs. Survival Action (A.R.S. § 14-3110)

It is helpful to understand the difference between two types of claims that can arise from a fatal incident.

Wrongful Death Claim: This claim compensates the surviving family members for their own losses. This includes their emotional pain and suffering, loss of companionship, and the financial support they would have received from the deceased.
Survival Action: This claim is brought by the deceased’s estate to recover damages that the deceased person could have claimed if they had lived. This includes medical bills incurred before death, lost wages between the time of injury and death, and the pain and suffering the deceased experienced before they passed away.

An experienced attorney will often pursue both types of claims simultaneously to ensure the family and the estate recover all available damages.

Building a Powerful Case to Challenge the Denial

Once an insurer denies your claim, the burden is on you to prove them wrong. This requires moving beyond the initial claim paperwork and building a case that could stand up in court. This proactive approach often convinces the insurer to reconsider its position and offer a fair settlement.

Gathering Compelling Evidence

A strong case is built on strong evidence. An attorney will launch an independent investigation to gather evidence the insurance company may have ignored or misinterpreted.

Expert Witnesses: These professionals can provide authoritative testimony that refutes the insurer’s reasons for denial.
- Accident Reconstructionists can analyze physical evidence from a crash scene to prove how it occurred and who was at fault.
- Medical Experts can review medical records to establish a clear link between the incident and the cause of death, countering claims of pre-existing conditions.
- Economic Experts can calculate the full extent of financial loss, including lost future income, benefits, and household services, providing a concrete valuation for your damages.
Depositions and Witness Statements: Your lawyer can take sworn testimony from eyewitnesses, police officers, and even the at-fault party. This testimony, given under oath, can lock in a version of events that is favorable to your case.
Preserving Physical Evidence: In cases involving defective products or car accidents, it is vital to preserve the physical evidence. An attorney can send a spoliation letter to prevent the other side from destroying or altering crucial evidence, such as a wrecked vehicle or maintenance logs.

Calculating the Full Scope of Damages

Many families underestimate the true value of their wrongful death claim. An insurer’s lowball offer or denial is often based on an incomplete calculation of damages. A thorough case must account for all economic and non-economic losses.

Economic Damages: These are the tangible financial losses resulting from the death.
- Lost wages and benefits the deceased would have earned.
- Loss of inheritance.
- Medical expenses incurred before death.
- Funeral and burial costs.
Non-Economic Damages: These are intangible losses that compensate the family for their personal suffering.
- Pain, grief, sorrow, and mental anguish.
- Loss of love, care, affection, and companionship.
- Loss of guidance and training (especially for surviving children).

Arizona law does not place a cap on non-economic damages in wrongful death cases, but proving their value requires a compelling presentation of the family’s story and the depth of their loss.

The Legal Process for Contesting a Wrongful Death Denial

After receiving a denial, you have several legal pathways you can take. The right strategy depends on the specifics of your case and the insurer’s reason for denial.

The Internal Appeal Process

Some insurance companies have a formal internal appeal process. This involves submitting a written request for them to reconsider their decision, usually accompanied by new evidence or arguments. While it is sometimes a required first step, it is rarely successful on its own. The appeal is reviewed by the same company that denied the claim in the first place. However, it can be a useful step to put your arguments on the record before moving to more serious legal action.

Sending a Demand Letter

A more powerful step is to have your attorney draft and send a formal demand letter to the insurance company. This is not just a simple letter; it is a detailed legal document that functions as a lawsuit in miniature. A strong demand letter will:

Outline the facts of the case.
Clearly establish the legal proven liability of their policyholder.
Present the evidence you have gathered, including expert reports and witness statements.
Provide a detailed calculation of all economic damages and non-economic damages.
Make a formal demand for a specific wrongful death settlement amount and set a deadline for a response.

A well-crafted demand letter from a reputable law firm signals to the insurer that you are serious and prepared to go to court. This often brings them to the negotiating table.

Filing a Lawsuit

If the insurer still refuses to offer a fair settlement, the next step is to file a wrongful death lawsuit. This officially begins the litigation process. While the majority of cases still settle before trial, filing a lawsuit grants your attorney powerful tools.

The Discovery Process: This is the formal process of exchanging information. Your lawyer can demand documents from the other side, send written questions (interrogatories), and take depositions of key individuals under oath. This is often where the weaknesses in the insurer’s case are exposed.
Mediation: Most Arizona courts will order the parties to attend mediation, where a neutral third-party mediator helps facilitate settlement negotiations.
Trial: If all else fails, your case will proceed to trial, where a judge or jury will hear the evidence and render a final verdict.

Bad Faith Insurance Claims

In some situations, an insurer’s denial is not just wrong; it is made in “bad faith.” This means the insurer denied the claim without a reasonable basis or failed to conduct a proper investigation. Examples of bad faith in Arizona include:

Unreasonably delaying the investigation or payment of a claim.
Failing to provide a reason for the denial.
Misrepresenting the facts or policy provisions.
Refusing to settle a case when liability is clear.

If an insurer has acted in bad faith, you may be able to file a separate lawsuit against them directly. A successful bad faith claim can result in you recovering damages beyond the original policy limit, including punitive damages designed to punish the company for its conduct.

Why Partnering with an Arizona Wrongful Death Attorney is Crucial

Facing an insurance company alone after the loss of a loved one puts you at a severe disadvantage. These corporations have teams of lawyers and adjusters trained to protect their bottom line. Hiring an experienced wrongful death attorney levels the playing field and provides you with the expertise and resources necessary to fight for a just outcome.

Expertise in Arizona Law and Court Procedures

An attorney who specializes in wrongful death cases in Arizona understands the specific state statutes, case law, and court procedures that will shape your case. They know the local judges and opposing lawyers, and they can anticipate the tactics insurers will use. This specialized knowledge is something you cannot get from a general practice lawyer.

Access to a Network of Experts

Building a strong case often depends on the testimony of expert witnesses. A seasoned attorney has an established network of credible and respected accident reconstructionists, medical professionals, and economists who can provide the powerful testimony needed to win your case.

Maximizing Your Compensation

An experienced lawyer knows how to accurately value a wrongful death claim, ensuring that both economic and non-economic damages are fully accounted for. They are skilled negotiators who can effectively argue your case with the insurer. Studies have consistently shown that claimants who are represented by legal counsel receive significantly higher settlements than those who are not.

Working on a Contingency Fee Basis

Nearly all reputable arizona wrongful death attorneys work on a contingency fee basis. This means you pay no upfront fees. The lawyer’s fee is a percentage of the final settlement or verdict they obtain for you. If they do not win your case, you owe them nothing for their legal services. This arrangement makes high-quality legal representation accessible to all families, regardless of their financial situation.

Conclusion

An insurance company’s denial of a wrongful death claim is a formidable obstacle, but it is not the end of the road. It is a challenge that can be met with a strategic, informed, and determined response. By understanding the reasons behind the denial, meticulously gathering evidence, and leveraging the protections of Arizona law, you can fight back effectively. The process begins with demanding a written explanation and organizing your documents, but it gains its true strength when you engage a legal professional.

The weight of pursuing a claim while grieving is immense, and you do not have to carry it alone. The most important action you can take is to consult with a qualified Arizona wrongful death attorney. They can lift the legal burden from your shoulders, handle all communications with the insurance company, and build the strongest possible case on your family’s behalf. With Arizona’s two-year statute of limitations always looming, time is of the essence. Do not let an unjust denial stand. Take the first step to protect your family’s rights and secure the justice your loved one deserves. Contact us for free consultation today.

When Insurers Deny Wrongful Death Claims in Arizona: What to Do