Most people assume that their insurance company will treat them fairly when they file a claim. Unfortunately, that assumption is often wrong. Insurance companies — including your own — sometimes engage in bad faith practices: wrongfully denying claims, unreasonably delaying payments, or offering settlements so low they are insulting.
What many Oklahomans don't know is that when an insurance company acts in bad faith, you may be entitled to far more than just the value of your original claim. Oklahoma has some of the strongest insurance bad faith laws in the country, and they can be a powerful tool for injured victims.
What Is Insurance Bad Faith?
Every insurance contract in Oklahoma contains an implied duty of good faith and fair dealing. This means the insurance company must handle your claim honestly, promptly, and fairly. When an insurer violates this duty, it commits what is known as insurance bad faith — a tort that gives rise to a separate legal claim beyond the underlying insurance dispute.
Common Examples of Insurance Bad Faith in Oklahoma
- Unreasonable denial of a valid claim — denying a claim without a legitimate basis or without conducting a proper investigation
- Unreasonable delay — failing to acknowledge, investigate, or pay a claim within a reasonable time
- Lowball offers — offering a settlement so far below the actual value of the claim that it constitutes an unreasonable refusal to pay
- Misrepresenting policy terms — telling you that your policy doesn't cover something when it does
- Failure to investigate — denying a claim without conducting a reasonable investigation of the facts
- Requiring excessive documentation — demanding unnecessary or burdensome documentation as a pretext for delay
- Threatening or coercing policyholders — using improper pressure tactics to force acceptance of a low settlement
Oklahoma's Bad Faith Law: What You Can Recover
Under Oklahoma law, if you prove insurance bad faith, you can recover:
- The full value of your original claim — what the insurer should have paid in the first place
- Consequential damages — financial losses you suffered as a result of the bad faith (e.g., medical bills you couldn't pay, lost wages from inability to work)
- Emotional distress damages — compensation for the anxiety and suffering caused by the insurer's conduct
- Attorney's fees — in bad faith cases, Oklahoma courts may award your attorney's fees to be paid by the insurance company
- Punitive damages — in egregious cases, Oklahoma courts can award punitive damages to punish the insurance company and deter future misconduct. These can be substantial — sometimes exceeding the original claim value by several times.
First-Party vs. Third-Party Bad Faith
First-party bad faith occurs when your own insurance company acts in bad faith toward you — for example, your own auto insurer wrongfully denying an uninsured motorist claim or a homeowner's insurer refusing to pay a valid property damage claim.
Third-party bad faith occurs when an insurer acting on behalf of a defendant (the at-fault party) acts in bad faith toward you as the injured claimant. Oklahoma recognizes both types of bad faith claims.
Signs Your Insurance Company May Be Acting in Bad Faith
Watch for these warning signs:
- Your claim has been denied without a clear, written explanation
- The insurer is taking an unusually long time to respond to your claim
- You've received a settlement offer that seems far below the value of your damages
- The adjuster is asking for documentation that seems excessive or irrelevant
- The insurer is pressuring you to accept a quick settlement before you've finished medical treatment
If you believe your insurance company is acting in bad faith, contact me at (918) 640-7383 for a free consultation. Oklahoma's bad faith laws are powerful — and I know how to use them.
