When someone in Tulsa files an insurance claim, they expect the insurer to handle it fairly and promptly. Unfortunately, some companies fail to uphold their legal duty. They may delay, deny, or undervalue valid claims without good reason. If you’re asking yourself, what is bad faith insurance and how do I prove it, you’re already taking the right step toward protecting your rights.
Oklahoma law gives policyholders strong protections against bad faith, but proving these claims requires detailed evidence and a clear understanding of how insurers should behave under the law. If you believe your insurance company acted unfairly, you can hold them accountable and seek payment for your losses.
Skilled legal guidance can help you take effective action. Contact a bad faith insurance lawyer near you for a free consultation.
Bad faith insurance occurs when an insurance company fails to deal honestly and fairly with a policyholder. Every insurance policy in Oklahoma includes an implied promise that the insurer will treat policyholders fairly. Oklahoma law requires insurers to handle claims reasonably. This duty means the company must:
Bad faith can take many forms. Some of the most frequent include:
A denied claim doesn’t automatically mean bad faith occurred. Sometimes a denial is valid under the policy’s terms. Bad faith exists when the insurer acts unreasonably or dishonestly, such as denying coverage without investigating or ignoring clear proof of loss.
Oklahoma recognizes two main types of bad faith insurance claims, depending on the relationship between the insurer and the insured.
A first-party bad faith claim happens when you file against your own insurance company. Examples include homeowners, health, or auto insurance policies where the insurer refuses to pay benefits owed under your coverage.
Third-party bad faith claims occur when the insurer’s failure to defend or settle a claim against you exposes you to greater liability. For instance, if your insurer rejects a fair settlement offer within your policy limits, you may later face a judgment exceeding those limits. That conduct can qualify as bad faith.
Disagreement alone isn’t bad faith. The dispute becomes bad faith when the insurer acts with disregard for your rights. Repeated delays, false statements, or failure to provide explanations for decisions often signal that an insurer has crossed the line.
Recognizing bad faith early helps you protect your claim. Insurance companies sometimes use tactics that seem procedural but are designed to wear claimants down.
Watch for these behaviors:
Insurers may delay claims by transferring files repeatedly or assigning multiple adjusters. Each delay increases pressure on policyholders who need payment to recover. A consistent pattern of excuses often reveals bad faith intent.
An insurer must gather all relevant facts before deciding. Relying only on selective evidence or ignoring key documents violates their duty. For example, refusing to review repair estimates or medical records could support a bad faith allegation.
Offering an amount that clearly undervalues your losses without explaining why often signals bad faith. An insurer must provide a reasonable basis for every offer, especially when documentation supports higher payment.
Oklahoma courts take bad faith conduct seriously. State law sets clear standards for fair claim handling.
Oklahoma law recognizes a legal claim known as the tort of bad faith. This means you can sue your insurer for acting unreasonably or dishonestly when processing your claim. The law applies to all types of insurance contracts sold in the state.
Courts use the reasonable basis test to determine bad faith. If the insurer lacked a legitimate reason for denying, delaying, or undervaluing a claim, and the company knew or should have known its conduct was unreasonable, that meets the test for bad faith.
When courts find bad faith, insurers can be ordered to pay more than just the original claim. Penalties may include compensatory damages, emotional distress damages, and punitive damages designed to deter future misconduct.
Proving bad faith requires showing that the insurer acted without a reasonable basis and knew or should have known it was wrong. Evidence plays a major role in demonstrating this misconduct.
To prove bad faith in Oklahoma, you need an attorney to show:
Evidence can include:
Sometimes, professional witnesses explain industry standards or evaluate whether the insurer’s conduct met those standards. Their testimony helps the court compare normal claim-handling practices to what actually happened in your case.
Keep records of every interaction with your insurer, including dates, times, and names of representatives. Save all written materials and claim forms. Consistent documentation often becomes the strongest proof of misconduct.
When an insurer acts in bad faith, the law allows you to pursue more than your original claim value.
These damages include the money the insurer should have paid under your policy. For instance, if your homeowner’s insurance refused to pay for storm damage, your compensatory damages may support a homeowner’s insurance bad faith claims case equal to the full cost of repairs.
Consequential damages cover losses caused by the insurer’s bad faith behavior. If a delayed payment forced you to take out loans or suffer lost business income, those financial impacts may qualify.
Oklahoma courts recognize that bad faith can cause significant emotional strain. If an insurer’s conduct caused anxiety, embarrassment, or humiliation, you can include those damages in your lawsuit.
Punitive damages punish insurers for intentional or reckless misconduct. Oklahoma limits punitive awards based on the severity of the behavior and the harm caused, but courts may impose them to discourage future bad faith actions.
In Oklahoma, bad faith insurance lawsuits generally follow a two-year statute of limitations. However, the specific timing can vary depending on the circumstances of your claim.
The time limit usually begins when the insurer’s wrongful conduct occurs, not necessarily when you discover it. That’s why documenting communications and responses from the insurer helps establish the timeline of events.
Certain factors, such as fraudulent concealment by the insurer or ongoing claim investigations, can extend your filing period. Discussing your situation with an attorney helps determine how these exceptions apply to your case.
Our team at Graves McLain Injury Lawyers helps Oklahoma residents stand up to insurance companies that act in bad faith. We know the pressure that unfair denials and delays create, and we take action to hold insurers accountable for their obligations.
We gather documents, claim files, and communication logs to uncover patterns of unfair handling. By reviewing internal insurer records, we identify where they violated claim-handling rules.
Our attorneys develop a comprehensive case that shows exactly how the insurer’s actions caused harm. We use evidence, witness statements, and expert opinions to demonstrate misconduct clearly.
We handle direct communication with the insurer to prevent further manipulation or delay. Our goal is to achieve a fair resolution that reflects the true impact of their bad faith actions.
If the insurer refuses to accept responsibility, we prepare your case for court. We aim to present clear evidence showing how the company’s conduct violated Oklahoma law and harmed you financially and personally.
Yes, payment doesn’t erase prior misconduct. If the insurer delayed payment or acted unreasonably before paying, you may still have grounds for a bad faith claim.
No, you’re not required to finish every internal appeal. Once you have evidence of unreasonable conduct, you can pursue a lawsuit.
Yes, bad faith laws apply to most insurance types, including auto, homeowners, health, and disability policies.
Ongoing investigations can be legitimate, but endless delays often indicate bad faith. The company must act within a reasonable time and explain why the process continues.
The timeline depends on the insurer’s cooperation, the complexity of the evidence, and court scheduling. An attorney can review your situation and provide a realistic estimate after examining your case details.
Bad faith insurance cases in Oklahoma involve strict filing deadlines, and waiting too long can limit your options. Taking action promptly helps preserve evidence and strengthens your case.
At Graves McLain Injury Lawyers, we represent policyholders who’ve been treated unfairly by insurance companies. Our team investigates misconduct, gathers proof, and pursues payment for your losses through negotiation or litigation.
Reach out today for a free, no-obligation case evaluation to learn how we can help you move forward.
