A policy is a contract that you have with the insurance company. The insurance company charges you a fee to maintain your policy. In return, they provide you with coverage as outlined in your policy. When you file a claim, insurance companies must provide the coverage outlined in your policy. It is called acting in good conscience.
Oklahoma’s rules and regulations enforce the requirement that insurance companies act with good faith. Insurance companies often think the law doesn’t apply when it comes to paying out claims they agreed to when offering the insurance policy. An insurer may work hard to deny or underpay a claim. It is called bad faith, and it undermines the spirit and agreement between the insurer and policyholder.
The policyholder must pay the balance due for services received if a claim has been denied or underpaid. The policyholder may feel that they are forced to pay their bills or not trust the insurance company in the future. There is still hope to get the insurance company uphold their part of the agreement. If a policyholder has been denied an insurance claim due to bad faith, they should speak to an Edmond Insurance Attorney to find out what can be done.
Understand the concept of insurance companies acting in bad faith
Insurance companies provide insurance policies for the general public to protect them against all types of calamities. When you buy an insurance policy, you are entering into a contract with the insurer, whereby the policyholder pays premiums for coverage as needed. The insurer is then responsible for upholding the terms of the policy and paying out claims in accordance with them. All insurance companies are affected by this, regardless of their size.
It can happen that an insured person needs to claim their insurance, but the insurer refuses to pay. It can be in the form a policyholder receiving a smaller amount than stated in their policy, the insurer delaying payment through various methods, or the denial of a claim. A bad-faith insurer will use these tactics and others to delay or deny claims.
You have a right to expect that your insurer will pay you if you use your policy. This means you must file a claim and explain the reason for your need to use insurance. Then, expect the insurer to pay the amount due. Insurance companies instruct their agents to use a variety tactics to delay payment. You have service providers who are waiting for payment, and in some cases they look to you as if you were responsible for the bill.
The insurer has acted in bad faith, and is ignoring the contractual obligations it owes to you as a policyholder. No matter how minor or major the problem may be. All it takes is the insurer to intentionally fail to honor the policy terms.
Insurance Companies Acting in Bad Faith
Insurance companies may be better than others but they all do their best to avoid paying claimants a fair compensation. This is done to both their policyholders as well as personal injury victims. Insurance companies are for-profit businesses, and large claims reduce their profits. Insurers can stay profitable by underpaying or refusing valid claims.
To hold an insurance company accountable, the best way is to sue them and make them honor their policy terms. Most policyholders don’t realize that they can sue an insurer and get their money back.
Not every denial comes from an insurer acting with bad faith. In some cases, a claim may be denied for good reasons. This means that there is no case because the insurer acted reasonably and in good conscience. If you have experienced a long and unreasonable claim process, experienced unusual difficulties in getting an insurer to respond or have been denied coverage despite being approved, you may be the victim of bad faith.
What to do if you feel your insurance company has acted in bad faith
It’s not necessary to accept the insurer’s decision to deny your claim. This is especially true when the coverage of the policy is clearly stated. You can push back on an insurer who is acting in bad faith. You can file a complaint at the Oklahoma Insurance Department, and then wait for the investigation to be completed. You may not receive the resolution that you want, even though you have informed the state of the bad behavior.
You can also hire a lawyer to represent you in court against an insurer who is acting in bad faith. A lawyer can help you determine whether the insurer deliberately denied your claim, which you were entitled to according to your policy. You may be entitled to compensation if there is proof that your insurance company refused your claim without reason.
Doug Terry Law protects your rights from bad faith insurers
Oklahoma Supreme Court ruled all insurance policies must include an implied clause. All insurance policies assume that the insurer will act with good faith in response to a claim. The policyholder should not have to worry about whether their insurer will pay out their claim. You should contact Doug Terry Law to schedule a consultation if you have experienced a situation in which your insurer has denied or made it difficult for a policyholder to file a claim.
Doug Terry represents clients who have suffered injustice by their insurance companies for many years. He knows the inner workings of insurance companies and how they deny claims. He can recognize when an insurance company is acting in bad faith. He will evaluate your case and determine if your claim has been denied unfairly.
The article Edmond OK Lawyer: Standing up against Bad Faith Insurance Companies first appeared on Attorney at Law Magazine.