Insurance has become a part of our everyday life. We need insurance for our homes, businesses, automobiles, health, even our lives and the lives of our loved ones. Oklahoma law requires us to have at least basic insurance coverage for our automobiles. We cannot obtain a mortgage for a home without purchasing homeowners insurance. The reality is, insurance is a necessity, and insurance companies - most of which are large, multi-billion dollar corporations - recognize people need insurance, and take advantage of that fact. When you purchase an insurance policy, whether for your car, home, or otherwise, you enter into a contract with the insurance company. The insurance policy is that contract.
Insurance companies know you have very little choice regarding what a particular insurance policy covers, or does not cover, and even less choice - or no choice at all - about how much you pay in premiums. The insurance companies also know that you are probably not an"expert" on insurance or insurance coverage. Insurance companies have vast resources, their own lawyers, and experienced claims adjusters who are trained to convince you to accept less, and very often much less, than what your claim may actually be worth. These companies have internal policies and guidelines they will not discuss with you, regarding adjustment of claims, reducing claim values, and even such things as how to deal with you if you are persistent, how to coerce you into accepting less than what your claim is actually worth, or how to convince you not to hire a lawyer. In many cases, claims adjusters may simply deny your claim, or attempt to convince you your particular claim is not covered, despite what your insurance policy says. After all, insurance companies are simply corporations, whose primary motivation is increasing profits, not helping you. In fact, the insurance company is usually working against you, because paying your claim reduces profits.
Fortunately, Oklahoma law provides you protection from oppressive and coercive tactics used by insurance companies. First, Oklahoma law allows you to bring a cause of action against an insurance company for breach of contract (the insurance policy). For example, if your policy provides for a certain type of coverage, and the insurance company refuses to allow your claim to be covered, you may sue the company for breach of contract.
Second, and perhaps more importantly, Oklahoma law recognizes that the insurance company owes you a duty above and beyond simple contract rights. This duty is referred to as the duty of good faith. It is a duty that applies to all insurance companies. Because the insurance company is bigger, more powerful, has more money and resources than you, and is motivated by profit, Oklahoma law requires the company to deal with you fairly and in good faith when handling your claim. In other words, just because the insurance company has the ability to take advantage of you, and probably would, Oklahoma law does not allow it to. If the company does take advantage of you, then the insurance company has acted in bad faith, and you may sue the company for breaching the very important fiduciary duty it owes you.
The duty to deal with you fairly and in good faith can take many forms. The insurance company cannot withhold payment of benefits to you without justification; it must conduct a reasonable investigation of your claim in a timely manner; it cannot use unreasonable or coercive settlement tactics; it cannot make unreasonable or "low-ball" settlement offers; it cannot unreasonably refuse to defend you if you are sued; it cannot unreasonably deny coverage, or a claim; it must comply with an order for benefits from the Workers Compensation Court.
These are just some examples of the insurance company's duty to handle your claim fairly and in good faith. We have several lawyers with experience in handling all types of insurance bad faith cases. Some of our lawyers have previously represented insurance companies, and have first hand knowledge of their strategies and tactics. If you believe you have been treated unfairly or unreasonably by your insurance company, or seek further information on this subject, please contact us online or at 1-800-522-8522.
