Signs Your Insurance Company May Be Acting in Bad Faith
Most people buy insurance because they believe it will protect them when life takes an unexpected turn. You pay your premiums on time, follow every rule in your policy, and expect the company to honor its side of the bargain. But when that trust is broken, and your insurer delays, denies, or mishandles your claim without cause, you may be facing bad faith insurance in Oklahoma. These practices are not only unethical but may also violate state law and policyholders have rights when this happens.
What Does “Bad Faith” Mean in Oklahoma?
Insurance is a contract. In Boling v. New Amsterdam Casualty Co. the Oklahoma Supreme Court held that an insurer must use skill, care, and good faith to protect its policyholder. When an insurer deliberately violates that duty, Oklahoma recognizes a separate tort claim for bad faith. A successful lawsuit can recover the full value of the original claim, plus damages for emotional distress, attorney fees, punitive awards, and other losses caused by the insurer’s misconduct.
Bad faith applies to both first-party claims (your own carrier) and third-party claims (when someone sues you and your liability insurer defends the case). Either way, the insurer must investigate promptly, communicate honestly, and pay or defend within policy limits.
Why Do Insurance Companies Act in Bad Faith?
- Profit pressure – Every claim a company pays reduces its bottom line.
- Complex policy language – Policies are drafted by insurers, giving them room to interpret exclusions in their favor.
- Imbalance of information – Adjusters handle claims all day, while most policyholders face a claim once or twice in a lifetime.
- Lack of oversight – Unless a policyholder challenges an unfair decision, some companies assume they can get away with it.
These factors can lead to tactics that violate the Oklahoma Unfair Claims Settlement Practices Act or the timelines in 36 O.S. §§ 1250.4, 1250.5, 1250.7, 1219. Understanding those tactics helps you spot trouble early and gather evidence for a bad faith insurance claim.
Five Red Flags That Suggest Bad Faith
The following warning signs do not automatically prove bad faith, but they reveal patterns that should prompt a closer look from a Tulsa insurance claim lawyer.
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Unexplained Delays
State law gives insurers clear deadlines. They must respond to a written claim within 30 days and pay a clean claim within 45 days. For property and casualty coverage, they have 60 days to complete an investigation. If your adjuster misses those deadlines without a written explanation, document every contact. Courts view silence and stonewalling as evidence that an insurer never intended to treat the claim fairly.
Example: Jane filed a roof-damage claim after a severe storm. Seventy-five days passed before her carrier sent the first letter, offering no reason for the delay. This delay violated her rights.
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Endless Document Requests
One or two supplemental requests can be legitimate. Repeated demands for the same paperwork are often a stalling technique. The Unfair Claims Settlement Practices Act labels this behavior unreasonable because it places the burden on the insured rather than on the company’s internal systems.
Example: After a collision, Mark’s insurer asked for photos, repair invoices, medical bills, and witness statements, all of which he sent within a week. Two weeks later, a different adjuster asked for the same records. A month after that, Mark received another identical request. The pattern showed the insurer had no good-faith plan to evaluate the claim.
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Denial Without Investigation
If your insurer denies a valid claim without explanation or reason, it may be grounds for instituting a bad faith action against them. This extends to when your insurer denies a claim because you did not show the damaged property, even though they did not request to see it.
Example: Following a wildfire that destroyed your home, or parts of it, you claim the appropriate damage with your insurer. Without investigating the claim or requesting additional evidence, your insurer simply informs you that they are denying your claim. Even though your policy is still in place, and you deserve compensation, the insurance company is saving its bottom line on your behalf.
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Misrepresentation of Policy Terms
If your insurer or their agent makes a false statement to convince you to take out a policy with them, and you later find out that you were deceived, it may be grounds for a bad faith action. This is also a practice that would be an unfair claim settlement practice under the law.
Example: When Sarah shopped for auto insurance in Oklahoma, the agent assured her that her $100,000 liability policy would fully cover any damages and legal fees resulting from a lawsuit if she were sued after an accident. Trusting this, she signed up. But when another driver sued her after a collision, Sarah discovered her policy capped legal fees at $10,000, leaving her to pay thousands in defense costs out of pocket.
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Lowball Settlement Offers
One of the most apparent signs of insurer misconduct is a lowball settlement offer. Insurers often present an initial offer that’s deliberately low, hoping you’ll accept it quickly and settle for less than your claim is worth. This tactic can exploit your immediate financial pressures or lack of clarity about the full extent of your damages.
Accepting a lowball offer can leave you shortchanged. If an insurer’s low offer is unreasonably inadequate or made to deceive you, it could be bad faith.
Example: Tom was rear-ended and suffered whiplash. His insurer quickly offered $5,000 to settle his injury claim, claiming it covered his initial doctor’s visit and a few weeks of pain. Eager to pay bills, Tom accepted. Months later, Tom learned he had a herniated disc requiring $15,000 in surgery. Because he’d already settled, Tom had to pay out of pocket. Had he rejected the lowball offer and consulted an insurance claim attorney, he could have received all the compensation he needed for his recovery.
Steps to Protect Yourself
- Keep meticulous records – Save every letter, email, claim note, and phone log.
- Request explanations in writing – Verbal promises are hard to prove.
- Get independent estimates – Medical opinions and repair quotes establish the real value of your loss.
- Consult a qualified insurance claim attorney – A lawyer can compare the facts to Oklahoma statutes and identify additional violations.
These actions put pressure on the insurer, create leverage for settlement, and prepare a bad faith lawsuit if one becomes necessary.
The Value of Working With an Experienced Tulsa Insurance Claim Lawyer
Bad faith litigation is complex. Insurers hire legal teams that specialize in defending these cases, and they know every loophole in their policies. A local Oklahoma insurance claim attorney or a team of insurance lawyers who focus on denied or underpaid claims can:
- Analyze policy language and find hidden coverage
- Calculate the full value of your economic and noneconomic losses
- Depose adjusters and supervisors to expose internal tactics
- Negotiate a fair settlement or present a persuasive case at trial
The lawyers at Aizenman Law Group have spent years facing insurers in courtrooms across Oklahoma. Our denied insurance claim attorneys understand how a wrongful denial or insurance claim denial can upend your finances and put your recovery at risk. Our deep background in bad faith insurance litigation, and our seasoned bad faith insurance attorneys, give us an insider’s view of how companies justify delays, denials, and lowball offers. That insight helps us counter those strategies and pursue full compensation for our clients.
Frequently Asked Questions About Bad Faith Insurance Claims
Question – What damages can I recover?
Answer – In addition to the original value of your claim, you may seek compensation for emotional distress, attorney fees, and punitive damages when the insurer’s conduct was intentional or malicious.
Question – How long do I have to file suit?
Answer – Under Oklahoma law, most bad faith actions must be filed within two years from the date you knew or should have known of the insurer’s misconduct. Speak with an attorney as soon as possible to protect your rights.
Question – Will hiring a lawyer scare my insurer into canceling my policy?
Answer – State law prevents retaliation for exercising your legal rights. Most carriers continue the relationship because the cost of wrongful cancellation can outweigh the cost of paying your claim.
Speak With a Bad Faith Insurance Attorney Today
Bad faith arises from the contractual duties an insurer owes to the insured. However, it can become very complicated due to the numerous contractual rules of interpretation. The fact that insurance companies also draft the policies means they can include policies and loopholes that will allow them to mask bad faith practices.
Your policy should protect you, not punish you. Let us help you hold the insurance company accountable and move forward with confidence.
Call Aizenman Law Group at 918-215-8856 any time day or night for a no-cost consultation.
