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VOLAND v. FARMERS INS. CO. OF ARIZONA

No. 2 CA-CV 96-0202.

943 P.2d 808 (1997)

189 Ariz. 448

Kim VOLAND, Plaintiff/Appellant, v. FARMERS INSURANCE COMPANY OF ARIZONA; and State Farm Mutual Automobile Insurance Company, Defendants/Appellees.

Court of Appeals of Arizona, Division 2, Department A.

Review Denied September 16, 1997.

Attorney(s) appearing for the Case

Risner & Graham by Kenneth K. Graham, Tucson, for Plaintiff/Appellant.

Chandler, Tullar, Udall & Redhair, L.L.P. by D.B. Udall, Tucson, for Defendant/Appellee Farmers Insurance Company of Arizona.

O'Connor, Cavanagh, Anderson, Killingsworth & Beshears, P.A. by Ralph E. Hunsaker and Christopher Robbins, Phoenix, for Defendant/Appellee State Farm Mutual Automobile Insurance Company.

OPINION

PELANDER, Presiding Judge.

This case presents an issue of first impression in Arizona: does the implied covenant of good faith and fair dealing require an insurance carrier to pay undisputed portions of uninsured motorist (UM) benefits to its insured/claimant before the latter executes a release or obtains an arbitration award? Concluding that defendants/appellees Farmers and State Farm (the carriers) had no such obligation in this case, the...

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