When you buy insurance, you expect your carrier to keep its promises. You pay premiums for years so that when disaster strikes, your coverage will be there. Unfortunately, some insurers fail to live up to that duty. They drag their feet, look for loopholes, or deny claims outright all to protect their bottom line. When this happens, you may have grounds to file a bad faith action.

Bad Faith Insurance Action

At its core, a bad faith action arises when an insurance company breaches its duty of good faith and fair dealing. Oklahoma law requires insurers to treat policyholders honestly and reasonably. That means claims must be investigated promptly, evaluated fairly, and paid when coverage applies. When an insurer is acting in bad faith, it puts profits ahead of policyholders. Instead of honoring its end of the bargain, the company manipulates the claims process to delay, underpay, or deny coverage.

Common Tactics Insurers Use in Bad Faith

Insurance companies rarely come out and admit they’re acting unfairly. Instead, bad faith shows up through patterns of conduct that tilt the playing field against you. Some common tactics include:

• Unreasonable Delays: Repeatedly asking for more documentation, dragging out investigations, or failing to return calls. The goal is to wear you down until you accept less than your claim is worth.
• Lowball Offers: Offering a fraction of the claim’s value in hopes you’ll take it quickly out of desperation.
• Misrepresenting Policy Terms: Telling you certain losses aren’t covered when, in fact, the policy language says otherwise.
• Failure to Investigate: Denying a claim without gathering all the facts or ignoring evidence that supports your position.
• Threats or Intimidation: Suggesting you’ll lose coverage altogether if you don’t accept their position.

Contract Disputes vs. Bad Faith Actions

Not every disagreement with your insurance company amounts to bad faith. Sometimes a dispute is simply contractual. This could mean you and the insurer interpret the policy differently, and a court must decide who is right. A contract dispute focuses on whether coverage exists under the written terms of the policy. For example, if your policy excludes flood damage and your basement fills with water after heavy rains, the insurer can deny coverage. That’s not bad faith; it’s enforcing the contract.

A bad faith action‌ looks at how the insurer handled the claim. Even if coverage is debatable, the insurer must still investigate fairly, communicate honestly, and treat you with respect. When it fails to do so—for instance, by denying coverage without investigating or by twisting the policy language—that crosses the line into bad faith. The difference matters. In a contract dispute, your recovery is limited to the benefits under the policy. In a bad faith action, you can pursue additional damages for financial losses, emotional distress, and in egregious cases, punitive damages designed to punish wrongful conduct.

How a Bad Faith Action Works in Oklahoma

While each case is unique, most bad faith actions follow a similar path:

1. Identifying Misconduct: Your attorney reviews the claim file, communications, and insurer actions to determine whether they acted unfairly.
2. Building the Case: Evidence such as emails, adjuster notes, and expert reports can reveal how the insurer mishandled your claim.
3. Filing Suit: If the insurer refuses to correct its conduct, your lawyer files a lawsuit in Oklahoma state or federal court.
4. Recovering Damages: A successful claim may result in the full value of your original claim plus additional compensation for harm caused by the insurer’s bad faith. Courts may award punitive damages when the misconduct is particularly reckless or intentional.

The process can be complex, but with the right legal support, you can hold the insurer accountable and recover the relief you deserve.

Protecting Yourself

If you suspect your insurer is acting in bad faith, you don’t have to accept it. Here are a few steps you can take right now:

• Keep everything in writing. Save copies of letters, emails, and claim forms. Written proof is powerful evidence.
• Document every interaction. Take notes on phone calls, including the date, time, and name of the adjuster you spoke with.
• Don’t rush to accept lowball offers. Pressure to settle quickly often signals the company is undervaluing your claim.
• Seek legal advice early. An experienced attorney can evaluate whether your situation is a contract dispute or a potential bad faith action.

Contact the Insurance and Bad Faith Attorneys at Titus Hillis Reynolds Love

At Titus Hillis Reynolds Love, we know the tactics insurers use and how to fight back. Our Oklahoma attorneys have helped policyholders stand up to companies that refuse to act in good faith. If your claim has been denied, delayed, or underpaid, we can explain your options and guide you every step of the way. Contact us today to schedule a consultation. Don’t let an insurance company’s bad faith leave you without the coverage you paid for.