Bad Faith Insurance Practices in Arkansas: Your Rights

Insurance companies owe a duty of good faith. When they unreasonably deny, delay, or underpay valid claims, Arkansas law may give you additional recourse.

What Counts as Bad Faith

Bad faith can include denying a claim without a reasonable basis, failing to investigate properly, unreasonable delays, or refusing to pay a clearly valid claim. Arkansas recognizes bad-faith claims, which require proof the insurer acted with dishonest or malicious conduct.

The standard is demanding, but egregious insurer behavior can meet it.

Recognizing the Signs

Repeated unexplained delays, lowball offers far below clear value, demands for irrelevant documentation, and misrepresentations of policy terms can all signal bad faith.

What You Can Do

Document every interaction with the insurer. If you suspect bad faith, an attorney can evaluate whether you have a separate claim — potentially exposing the insurer to damages beyond the original policy amount, which often motivates fair treatment.

This article is general information about Arkansas law, not legal advice for your specific situation. For advice about your claim, request a free case review.

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