The right insurance companies will act on good faith. They will investigate claims in detail and provide fair compensation. They will also clearly communicate about the claims process and policy terms.
Unfortunately, not all insurers act the same and some engage in bad faith practices. If you experience unreasonable delays, unclear denials or lowball offers, the insurer may be acting in bad faith. In such cases, legal action may be necessary.
Filing a claim or lawsuit against bad faith insurance
If you believe you’re a victim of insurance bad faith, you have the right to sue your insurance company for denying, delaying, or underpaying valid claims. In Oklahoma, the process typically involves these steps:
- Send a formal complaint to the insurance company
- File a complaint with the Oklahoma Insurance Department
- Consult with an attorney who has experience in insurance law
- If necessary, file a lawsuit in court
Before filing a lawsuit, your attorney may attempt to negotiate with the insurance company. If negotiations fail, they will proceed with filing a formal lawsuit.
Important: You must initiate this process within two years of when the bad faith act occurred. This is known as the statute of limitations. If you miss this deadline, you may lose your right to sue.
Gather evidence about your claim
Keep all communications between you and your insurance company. As with every claim, the burden of proof is on you to maintain your claim that the insurance company acted unreasonably and without proper cause. That also involves keeping copies of your policy and claim documents and even photographs or videos related to your claim. This is so when you say they acted in bad faith, you have proof to give the court.
When the court reviews your claims
Once you file a lawsuit, the court will review your claim and evidence. Your attorney will present your case, and the insurance company will have an opportunity to defend their actions. The court will then make a decision based on the evidence and applicable laws.
