insurance claim denied

[hsanders]

What is the name of your state? arizona
i own a video store. we had a customer that rented videos and copied them, switched the spools and returned the inferior copies to us. Customer had valid accout and was convicted of felony theft. our insurance company says they will not pay, due to our "voluntarily parting" with the videos. they also told us claim was going to be paid, not in writing, and then changed their mind two days later. we filed suit against them for breach of contract, but i think maybe it should have been for bad faith. we haven't gone to court yet. they sent examples of why our claim wasn't covered but used a buy back exclusion that is only available to car dealerships. any help would be appreciated.

 

[loku]

Your chances of winning depend on the wording of your insurance contract. If under the terms of the contract, you deserve to be paid, then you are correct in suing for breach of contract.

Sec.-1802 of the Arizona Criminal Code in pertinent part defines “Theft” as follows:
13-1802. Theft; classification
A. A person commits theft if, without lawful authority, the person knowingly:
1. Controls property of another with the intent to deprive the other person of such property; or
2. Converts for an unauthorized term or use services or property of another entrusted to the defendant or placed in the defendant's possession for a limited, authorized term or use

According to the Arizona law, you have a good case that the person committed theft.