Bad Faith Treatment by Insurance Companies
Bad Faith Tactics by Insurance Companies are unfortunately commonplace in Oklahoma. It is reprehensible when insurance companies don't live up to their end of the insurance contract and try to avoid payment of legitimate claims from people who have been injured or have suffered property damage.
Duty of Good Faith and Fair Dealing
Insurance companies have a duty to deal with their insureds in good faith. This means that they must appropriately and fairly handle legitimate claims. Oklahoma contract law and insurance law principles require that insurance companies act in accordance with good faith principles and in accordance with the insurance contracts that they sell to consumers. If an insurance company violates its duty of good faith, it can be liable for its bad faith actions.
Common Bad Faith Tactics by Insurance Companies
- Unreasonable delays in responding to claims - Insurance companies have a duty to respond and adjust claims in a timely manner. In Oklahoma, insurance companies must acknowledge claims to policy holders within thirty (30) business days per 36 O.S. Section 1250.6. Every Insurance company shall advise policyholders within forty-five (45) days after the proof of loss is filed of the acceptance or denial of a claim or if further investigation is necessary. The denial of a claim must be given to the claimant in writing per 36 O.S. Section 1250.7
- Failure to Conduct a Complete Investigation - The implied duty of good faith and fair dealing requires all insurance companies to conduct prompt and complete investigations into claims filed by policy holders.
- Deceptive Practices - Failure to Disclosure applicable policy coverages to an insured is an example of a deceptive practice designed to avoid paying valid claims.
- Misrepresenting policy language or the law - Insurance companies can't interpret policy language in a way that is unfair to their policy holders. Insurance companies also have a duty of honesty to their policy holders.
- Offering less money than a claim is worth - Insurance companies have a duty to pay the true value of a claim on policies purchased by their insureds. They can't lowball their policy holders in an attempt to save money. In some cases a simple NADA book value will provide evidence of underpayment on auto property loss claims.
It is important to to understand your rights under an insurance policy that you purchase with your hard earned money. Our firm has successfully litigated bad faith claims for our clients holding the insurance companies accountable for bad faith conduct.