February 4, 2025 | Bad Faith Insurance, Uncategorized
Under Oklahoma law, insurance companies have a legal duty to act in good faith and deal fairly with their insureds to ensure that policy benefits owed are in fact received. When and if an insurance company fails to act in good faith and deal fairly with its insured(s), it may be liable for the tort of “bad faith,” a/k/a breach of the duty of good faith and fair dealing. As the Oklahoma Supreme Court has reiterated time and again, “[t]he essence of an action for breach of the duty of good faith and fair dealing is the insurer’s unreasonable, bad-faith conduct.” Despite the state’s acceptance of this duty of “good faith,” Oklahoma insurance companies continue to act unreasonably when handling Oklahomans’ insurance claims. The continued prominence of “bad faith” conduct in Oklahoma (and in resulting lawsuits) is not occurring in a vacuum; indeed, it is in line with a nationwide rise of bad-faith litigation.
Dealing with an insurance company handling your claim(s) may be frustrating, difficult, and confusing, and the average Oklahoman is neither as well-versed as their insurance company on the law of “bad faith,” nor as well-funded. Insurance companies in Oklahoma know this and oftentimes act in favor of profits and their bottom line—not in the interests of their insureds. For more information about bad-faith claims, or to speak with an attorney specializing in bad-faith litigation, reach out to the attorneys at McGuire Law Firm, or visit their website at the following link: https://www.kentmcguirelaw.com/oklahoma-city-bad-faith-insurance-lawyer/.
What is a Bad Faith Insurance Claim?
A “bad faith” claim is a cause of action that arises from an insurance company’s failure to act reasonably and in good-faith in handling an insurance claim. There are a variety of ways in which a liability insurer can violate its duty of good faith and fair dealing. To list a few examples, an insurer may violate its duty of good faith and fair dealing by:
- Unjustifiably delaying or withholding payments owed under the terms of an insurance policy;
- Imposing requirements upon insured person(s) not included in the terms of their insurance policy;
- Looking for reasons to deny a claim instead of fairly evaluating the claim information in its possession;
- Providing low-ball offers for damaged property unsupported by valid comparables, appraisal, or other information;
- Refusing to pay the fair value of property damaged, or for medical expenses incurred as a result of a covered injury; and
- Forcing an insured party to file a lawsuit to recover benefits owed under the relevant policy.
This list is not exhaustive, and every claim is unique. So, if you are concerned that your insurer is not handling your claim in a fair, honest, or unbiased manner, you should consider contacting and speaking with an attorney.
Three Reasons You Need An Attorney in Your Corner When Dealing with an Insurer:
If an insurance company is acting in bad faith, such as by refusing to communicate, ignoring information provided to support your claim(s), or presenting low-ball offers not representing the true value of your losses and/or injuries, it is best to contact an attorney for advice on “next steps.” Why?
1. Oklahoma Bad Faith Law Requires Specialized Knowledge and Training
The tort of “bad faith” in Oklahoma is a court-recognized doctrine arising under “common law.” This means such claim is not defined by any specific Oklahoma law, statute, or regulation, but rather, by cases decided by Oklahoma’s Supreme Court. Because claims of bad-faith arise at common law, understanding the different aspects of that claim require specialized experience and training, including the ability to research and understand dozens of controlling cases defining the scope of “bad faith” conduct. REMEBER: insurance companies have scores of folks on their side: adjusters, investigators, specialists, and attorneys. These folks know the bounds of Oklahoma law, and they know that the average Oklahoman—without legal representation—does not know such law. So to best position yourself to deal with an insurer acting in bad faith, an experienced, trial-ready lawyer can go a long way in guiding you forward.
2. Insurance Companies Are Better Resourced and Ready to Litigate
Insurance companies are not afraid to use their vast resources to act aggressively to protect profits or their bottom line. And unless you are one of the few Oklahomans with millions of dollars in assets and a team of lawyers to boot, you are likely outmatched. As tracked by the Oklahoma Insurance Department (“OID”), Oklahoma has almost 2,000 foreign and domestic insurers, and many of these insurers are extremely well resourced. Some of the largest insurance companies operating in Oklahoma have reported assets exceeding tens of billions of dollars:
- Allstate Insurance Company: $60,230,990,455 in REPORTED ASSETS, $11,988,257,968 in CAPITAL/SURPLUS.
- GEICO General Insurance Company: $20,142,316,023 in REPORTED ASSETS, $9,404,356,903 in CAPITAL/SURPLUS.
- Farmers Insurance Exchange: $23,677,662,493 in REPORTED ASSETS, $4,450,245,718 in CAPITAL/SURPLUS
With resources and capital valued in the billions, insurance companies will not hold back, and their adjusters (and lawyers) will aggressively refute and deny any allegation of bad faith. In order to protect your interests and go toe-to-toe with an insurer acting in bad faith, you will need an experienced advocate in your corner. The attorneys at McGuire Law Firm are ready, willing, and able to help.
3. Determining Damages in a Bad Faith Claim Takes Specialized Experience
Because the essence of a claim of bad faith is an insurance company’s unreasonable, bad-faith conduct, damages for such conduct are not necessarily obvious or intuitive. Such damages, in fact, are usually determined by impossible-to-predict juries. Moreover, there is a great body of Oklahoma case law addressing the availability and scope of damages in an insurance bad-faith action.
In a run-of-the-mill bad-faith case, the jury is frequently asked to award an “amount of money that will compensate” an insured person “for any loss [] suffered as a result of the insurer’s” bad-faith conduct, including, e.g., the insurer’s (1) failure to pay a claim, (2) denial of coverage, or (3) refusal to settle a claim. Juries are explicitly permitted, under Oklahoma law, to consider financial losses to the insured person, “embarrassment and loss of reputation,” and even “mental pain and suffering.” This means that juries in a bad-faith case may consider not only an insured’s actual, “out-of-pocket” costs arising from an insurer’s bad-faith conduct, but also an insured’s frustration, sadness, anger, grief, annoyance, and other mental and emotional injuries relating to the insurer’s bad faith. In many cases, attorneys’ fees are also recoverable, as well as punitive damages.
Punitive damages are available in a bad-faith lawsuit when the insured proves, by clear and convincing evidence, that the insurance company acted intentionally, or “recklessly disregarded its duty to deal fairly and act in good faith with its insured,” or “was either aware, or did not care, that there was a substantial and unnecessary risk that [its] conduct would cause serious injury.” Under such circumstances, juries may award not only damages compensating an insured person for their losses, mental and emotional distress, etc., but damages intended to punish the insurance company for its reprehensible conduct. If you believe your insurance company is acting in a manner that puts your health, livelihood, or life in jeopardy, you should absolutely contact an attorney to discuss the potential implications for any bad-faith claim.
Set Up a Free Case Review With a Top Oklahoma City Bad-Faith Insurance Lawyer
At McGuire Law Firm, Kent, Linda, and Wyatt McGuire work hard to provide practical and solutions-focused advocacy to their clients. If you are dealing with an insurer’s unreasonable, bad faith action and you need legal advice, Kent, Linda, and Wyatt stand ready to assist no matter your location in Oklahoma; they are here to help. For assistance relating to any bad-faith conduct by your insurance company, do not hesitate to contact McGuire Law Firm today for a free, no-obligation case review, and to speak with an attorney.