July 15, 2024 | Bad Faith Insurance
Dealing with a denial from an insurance company can be stressful and frustrating—especially so if you are confident that your claim is well-founded. This raises an important question: Do I have a bad-faith insurance case if the insurer denied my claim in Oklahoma? The short answer is “it depends”—if the insurer was unreasonable in denying your claim, you may have been the victim of bad faith. Here, our Oklahoma bad-faith insurance claims lawyer provides a comprehensive overview of the key things you need to know about your rights and your options.
What is a Bad-Faith Insurance Claim?
Insurance companies in Oklahoma have a general responsibility to handle claims in a fair, good-faith manner. A bad faith insurance claim in Oklahoma arises when an insurance company fails to handle a claim fairly and honestly. Bad-faith insurance practices can take a number of different forms, including unjustifiable delays, failure to conduct a proper investigation, and the outright refusal to pay a valid claim. In Oklahoma, policyholders may pursue a bad faith claim against their insurer if they believe their insurer acted in an unreasonable, deceitful, or otherwise improper manner.
An Unreasonable Denial Could Be Insurance Company Bad Faith
In Oklahoma, an unreasonable denial of an insurance claim by an insurer can absolutely be considered an act of bad faith under the law. A denial is bad faith when an insurance company refuses to pay out a claim without a legitimate, reasonable basis for the rejection.
To be clear, there is a difference between an incorrect denial—which may potentially be reversed on an appeal—and a bad faith denial. Proving a denial of an insurance claim is bad faith, which requires establishing that the insurance company has no reasonable basis to reject benefits.
Three Signs that Suggest a Denial is a Bad-Faith Insurance Practice
Do you believe that your insurance company in Oklahoma denied your claim in bad faith? The best step that you can take is to consult with an attorney. A lawyer who has experience handling bad faith insurance litigation can review the case and the denial and help you understand your rights and your options. Here are three signs an insurance denial was in bad faith:
- The Denial Was Almost Immediate (No Real Review or Investigation): In Oklahoma, if an insurance claim denial comes almost right away after you filed your claim, that is an alarming sign. It might suggest bad faith. Indeed, a suspiciously rapid denial may indicate that the insurer did not engage in a thorough review of the claim’s details and/or the supporting documentation provided. Oklahoma law mandates that insurers conduct an adequate investigation of all claims. The failure to do so may be a bad-faith settlement practice. Contact an Oklahoma bad-faith insurance lawyer for help.
- The Denial is Based on a False Assertion: When an insurance company in Oklahoma denies a claim based on incorrect or outright false assertions, it could also be a sign of bad faith. Most often, this happens when an insurer provides reasons for the denial that are simply factually untrue. As an example, claiming non-coverage of a clearly covered peril to avoid payment can be grounds for a bad-faith claim under Oklahoma law.
- The Denial Lacks a Clear, Sensible Explanation: Finally, a denial that lacks a clear and sensible explanation can be another sign of bad faith by an insurance company. As a general matter, insurers are required to provide policyholders with coherent, reasonably detailed justifications for a denial. An ambiguous or poorly explained denial suggests that the insurer may not have a legitimate basis for their decision or that they have not adequately reviewed the claim.
Know Your Right to Pursue Bad-Faith Damages in Oklahoma
Were you the victim of a bad-faith denial by an insurance company? Under Oklahoma law (Oklahoma Statutes § 23-103), you have the right to pursue compensation. Bad-faith damages against an insurance company in Oklahoma may include any or all of the following:
- The initial value of the value;
- Legal fees, including the cost of your lawyer;
- Compensation for consequential damages;
- Payment for emotional suffering; and
- Punitive damages (if especially egregious denial).
Contact Our Oklahoma City Bad-Faith Insurance Claims Attorney Today
At McGuire Law Firm, our Oklahoma City bad faith insurance lawyer is a skilled and experienced advocate for justice. If you have any specific questions or concerns about bad faith insurance claims, please do not hesitate to contact us today for a free, no-strings-attached initial case review. From our offices in Oklahoma City and Lawton, we handle bad-faith insurance claims across the region.