Experience. Ambition. Dedication. Results.

Bad faith insurance, a policyholder’s nightmare

On Behalf of | Mar 15, 2024 | Insurance Bad Faith

Insurance is one of those things that most people don’t like having to pay for but are glad to have it when they need it. There are many types of insurance, such as home insurance, automobile insurance, life insurance and more. As a policyholder, you can expect your insurance company to make good on the terms of your contract when you file a claim. Sadly, that doesn’t always happen. In fact, many cases of bad faith insurance have occurred in Oklahoma and throughout the country.

Bad faith insurance refers to an insurance agency’s failure to honor a legitimate claim. If you file a claim and the agency refuses to fulfill its obligations, you may be a victim of bad faith insurance. The company might try to avoid a full payout or might manipulate the language of your contract in its own favor.  Such behavior is unlawful and constitutes grounds for a lawsuit.

Human error versus bad faith insurance

Nobody’s perfect, and insurance agents can make mistakes just like anyone else. Clerical errors, miscommunication or other issues can lead to errors that affect your insurance claim. This, however, does not necessarily mean the company in question is acting in bad faith. They may have simply made a mistake.

On the other hand, if it appears that one or more of the elements shown in the following list exist, you may have a bad faith insurance problem on your hands:

  • Agency is disregarding its contractual obligations
  • Agency is misrepresenting the terms of a contract
  • Agency is ignoring evidence that supports policyholder’s claim
  • Agency fails to respond to claim in a timely manner
  • Agency refuses to explain why it has denied a claim
  • Agency offers partial payment when policyholder has a right to more

There are laws in place in Oklahoma to protect you against malicious behavior from an insurance company when you have filed a legitimate claim.

Don’t stand for denial of compensation you deserve

In Oklahoma and beyond, many policyholders have encountered legal problems when their insurance companies have wrongfully denied compensation to which they had the right. Bad faith insurance doesn’t sit well with the courts. The law is on your side. There is no excuse for insurers to pay out less than the maximum amount to which you may deserve in accordance with the terms of your contract.

Your insurance policy is a legally enforceable contract. Every agency has an obligation to pay up when their policyholders have filed a legitimate claim. If you believe you have fallen victim to bad faith insurance, you can take immediate steps to rectify the situation in court.