Insurance Bad Faith
In Oklahoma, the relationship between insurers and policyholders is governed by a duty of good faith and fair dealing. When that duty is called into question, the stakes are high, no matter what side of the table you’re on.
At JPM Law, our bad faith insurance attorneys offer decades of combined experience navigating complex insurance disputes and commercial litigation. With a deep command of state laws and industry-specific regulations governing Oklahoma insurance matters and a steadfast determination to zealously advocate for each client’s interests, they’re the legal team you want in your corner.
What Is Insurance Bad Faith?
Under Oklahoma law, bad faith occurs when an insurer unreasonably denies, delays, or undervalues a valid claim and knew — or should have known — that its conduct was unreasonable. Bad faith claims can arise across all lines of insurance, including:
- Auto and uninsured/underinsured motorist claims
- Homeowners and property damage claims
- Commercial property and business interruption claims
- Health and disability insurance claims
- Life insurance claims
- Fire, flood, and storm damage claims
- Crop and agricultural insurance claims
- Professional liability and malpractice coverage disputes
- Long-term care insurance claims
- Workers’ compensation insurance disputes
- Policy cancellation and rescission disputes
- Liability insurance — including failure to defend and failure to settle within policy limits
State law recognizes bad faith insurance claims as an independent tort — a civil wrong separate from, and in addition to, any breach-of-contract claim. When deciding a bad faith claim, Oklahoma courts apply a reasonableness test: did the insurer have a legitimate basis for its conduct, and did it know — or should it have known — that its conduct was unreasonable? No malicious intent is required. An insurer can face bad faith liability simply for failing to conduct an adequate investigation, to communicate honestly, or to act within the timeframes the law requires.
What Triggers a Bad Faith Claim?
Bad faith is flexible. First-party claims arise when a policyholder’s own insurer unreasonably denies, delays, or undervalues a claim they’ve filed directly. Bad faith can also arise in the liability context when an insurer fails to adequately defend its insured or refuses a reasonable settlement offer within policy limits — potentially exposing the insured to a judgment exceeding those limits. Common triggers include:
- Denying a valid claim without a reasonable basis
- Failing to conduct a prompt, thorough investigation
- Unreasonably delaying payment
- Making a settlement offer that bears no reasonable relationship to the value of the claim
- Misrepresenting policy terms or coverage
- Failing to defend or settle a third-party claim within policy limits
- Violating the deadlines established under the Oklahoma Unfair Claims Settlement Practices Act
Oklahoma law is clear on timing: insurers generally must respond to a written claim within 30 days, pay a clean claim within 45 days, and complete an investigation on property and casualty claims within 60 days. Courts take missed deadlines seriously — treating them as evidence that the insurer may not have intended to handle the claim fairly.
Why JPM Law for Your Bad Faith Dispute?
Bad faith insurance litigation requires a legal team that understands both sides of these disputes — how claims are evaluated, how investigations are conducted, how coverage decisions are made, and how Oklahoma juries assess insurer conduct. So what can you expect from our bad faith defense attorneys?
Thorough Case Analysis. We begin every matter with a comprehensive review of the claims file, the communications record, and the decisions made at each stage of the process. Understanding what happened — and why — is the foundation of any effective strategy.
Aggressive Advocacy. Whether in motion practice, settlement negotiations, or the courtroom, our attorneys press every available advantage on behalf of our clients. At every stage of the process, we’re laser-focused on achieving the most favorable outcome on your behalf.
Tailored, Cost-Effective Solutions. We take the time to understand your specific needs and goals, tailor our approach accordingly, and deliver the highest-quality legal representation without unnecessary cost or complexity.
A Proven Track Record. JPM Law has earned a reputation for delivering results in complex insurance matters and for earning the respect of clients and peers throughout Oklahoma.
Speak with an Insurance Bad Faith Attorney
In bad faith litigation, there’s little margin for error. Whether you’re embroiled in an active dispute or anticipate you soon will be, our bad faith insurance lawyers are here to assess your situation, outline your options, and help you determine the best path forward.
Insurance Bad Faith: Frequently Asked Questions
Does a coverage dispute protect an insurer from a bad faith claim?
A genuine coverage dispute doesn’t automatically protect an insurer from a bad faith claim. Even where coverage is legitimately contested, Oklahoma courts require insurers to investigate thoroughly and honestly. Cutting corners on that process — or ignoring evidence that supports the claim — can give rise to bad faith liability regardless of how the underlying coverage question is resolved.
What is the difference between a bad faith claim and a breach of contract claim?
A breach-of-contract claim asks whether the insurer paid what the policy required. A bad faith claim asks something different — whether the insurer handled the claim reasonably and in good faith. Because bad faith is an independent tort under Oklahoma law, it carries its own damages separate from and in addition to any contract recovery, and those damages are not limited by the policy’s terms.
How long does a policyholder have to bring a bad faith claim in Oklahoma?
The statute of limitations for bad faith claims in Oklahoma is generally two years, running from the date the claimant knew or should have known of the insurer’s unreasonable conduct. Because timing can be affected by the specific facts of a case, consulting an attorney promptly is always advisable.
