Filing a life insurance claim should be a straightforward process, but sometimes insurance companies act in bad faith to delay or deny rightful payouts.
Recognizing the warning signs can help you take action and protect your rights under Oklahoma law.
Unreasonable delays in processing
Insurance companies must handle claims in a timely manner. If your claim sits in limbo for months without clear communication, the insurer may be acting in bad faith. Oklahoma law requires insurers to acknowledge and investigate claims promptly. If your insurer repeatedly asks for unnecessary documents or provides vague reasons for delays, this could be an attempt to avoid payment.
Denial without a valid reason
An insurance company must provide a clear and lawful reason for denying a claim. If your claim is rejected based on ambiguous policy language or a misinterpretation of terms, the insurer may be acting in bad faith. Some companies deny claims outright, hoping policyholders will accept the decision without challenge. Under Oklahoma law, you have the right to request a detailed explanation and appeal the decision.
Misrepresentation of policy terms
Some insurers attempt to reinterpret or misrepresent policy terms to justify a denial. They may claim exclusions that do not apply or argue that a policy lapsed without proper notice. In Oklahoma, insurers must act honestly and fairly when handling claims. If your insurer suddenly claims that a policy does not cover your situation, reviewing the original contract and seeking clarification can help uncover bad faith tactics.
Lowball settlement offers
If your insurer offers a payout far lower than expected without justification, they may be trying to minimize their financial responsibility. In Oklahoma, insurers must provide a fair evaluation of claims. If the settlement offer does not align with the policy’s benefits, pushing back and requesting a breakdown of their valuation may be necessary.
What you can do next
If you suspect bad faith, document every interaction with your insurer. Keep copies of emails, letters, and policy documents. Oklahoma law allows policyholders to take legal action against insurers who act in bad faith, including seeking compensation for damages beyond the policy amount.
