When is an Insurance Company’s Denial of a Claim considered to be in “Bad Faith” in Oklahoma?
Insurance companies are liable for “bad faith” breaches of their policies when they deny a claim without a reasonable basis. When you purchase an insurance policy in Oklahoma, you do so because you want to protect yourself and your family against financial losses from any type of unfortunate catastrophe, such as a tornado, fire, car accident, or other unexpected loss. Those events can wreak havoc on your life financially. That’s why you purchase insurance coverage to bail you out of those situations, so that have money to cover your losses.
When an insurance company, without any good reason, intentionally refuses to pay, they have not only breached their contract with you, but have committed a far more damaging offense, which the law refers to as a “Bad Faith Breach.” This is because an insurance policy is treated differently than other contracts. An insurance company cannot promise to cover you in the event of tragedy and then refuse to pay out when such tragedy strikes.
Insurance Companies have a Duty of Good Faith & Fair Dealing to the people they Insure in Oklahoma
There is an implied duty of good faith and fair dealing in every policy issued in Oklahoma. Under this duty, insurance company must treat its policyholders’ interests with equal regard as it does its own interests. Filing a claim under your policy should not be an adversarial process. To the contrary, your insurance company should assist you in the claims process. At a minimum, your insurance company should do the following:
- Assist you with your claim.
- Disclose all benefits, coverages, and time limits that may apply to your claim.
- Conduct a full, fair, and prompt investigation of your claim at its expense.
- Fully, fairly, and promptly evaluate and adjust the claim
- Pay all amounts not in dispute within 30 days
- Further, your insurance company may not deny your claim or any part of your claim based upon insufficient information, speculation, or biased information
When your Insurance Company refuses to treat you fairly during the Claims Process, call Oklahoma City Attorney Travis C. Smith for Immediate Help
If your insurance provider is not complying with the above rules of conduct when handling your claim, call on us to help you get what you deserve out of your insurance coverage. We do not charge for consultations, and if we take your case, we do not charge any fee unless we win!