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Insurance Bad Faith

First-Party Bad Faith Claims

You paid your premiums faithfully. When you needed your insurance company, they denied your claim, dragged their feet, or offered pennies on the dollar. That's first-party bad faith—and Oklahoma law gives you the right to fight back.

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Key Takeaways

  • First-party = your policy, your claim: You're the policyholder seeking payment from your own insurer
  • Duty of good faith: Oklahoma requires insurers to deal fairly with their own policyholders
  • Uncapped punitive damages: Egregious conduct can result in substantial jury awards
  • 2-year limitation: Act promptly to preserve your rights

Understanding First-Party Bad Faith

In a first-party claim, you have a direct contractual relationship with the insurance company. You pay premiums; in return, they promise to cover certain losses. When a covered loss occurs—whether it's a car accident, storm damage, medical expense, or disability—you file a claim with your own insurer.

Oklahoma courts have long recognized that this relationship creates an implied covenant of good faith and fair dealing. Your insurer can't take your premiums for years and then abandon you when you need them. Under 36 O.S. § 3629, unreasonable conduct in claims handling is actionable bad faith.

Common First-Party Bad Faith Scenarios

Auto Collision Claims

Your insurer denies coverage for accident damage, lowballs repair costs, or refuses to pay the totaled vehicle's fair value.

Homeowners Claims

Storm damage denied as 'pre-existing,' roof claims systematically undervalued, or delays leaving your home in disrepair.

Health Insurance

Denial of medically necessary treatment, prior authorization delays, or wrongful termination of coverage.

Disability Insurance

Benefits cut off despite ongoing disability, excessive surveillance, or demands for unnecessary IMEs.

What Crosses the Line Into Bad Faith?

Not every claim dispute is bad faith. But unreasonable conduct that prioritizes the insurer's interests over yours can cross the line:

Denying without investigation

Rubber-stamping denials without reviewing documentation or investigating the claim.

Misrepresenting policy language

Citing exclusions that don't apply or creatively interpreting coverage to avoid payment.

Unreasonable delays

Sitting on claims for weeks or months without action while your damages grow.

Lowball offers with no basis

Offering a fraction of documented damages with no reasonable explanation.

Excessive documentation demands

'Paper to death' tactics—endless requests designed to frustrate you into giving up.

Failure to communicate

Ignoring calls, not returning messages, leaving you in the dark about your claim.

How We Prove First-Party Bad Faith

Building a bad faith case requires demonstrating that the insurer's conduct was unreasonable under the circumstances. Here's what we do:

1

Analyze Your Policy

We review every provision to confirm your claim is covered and identify any misrepresented exclusions.

2

Document the Claim History

Every denial letter, every phone call, every delay—we build a timeline of unreasonable conduct.

3

Subpoena the Claim File

In litigation, we obtain the insurer's internal notes, adjuster communications, and claims manuals revealing their true motivations.

4

Engage Experts

Industry experts testify about insurance standards and how your insurer's conduct deviated from acceptable practices.

Other Types of Bad Faith Claims

Third-Party Bad FaithStorm & Property ClaimsUM/UIM Bad FaithDelay & Denial TacticsHealth Insurance Bad FaithInsurance Bad Faith Overview

Frequently Asked Questions

First-party bad faith occurs when YOUR insurance company refuses to pay YOUR valid claim. You have a direct contractual relationship with the insurer—you pay premiums, they agree to cover losses. When they unreasonably deny, delay, or underpay your claim, they violate the implied covenant of good faith and fair dealing under Oklahoma law (36 O.S. § 3629).
Common first-party bad faith scenarios include: auto collision claims denied by your own insurer, homeowners insurance refusing to cover storm damage, health insurance denying medical treatment, disability insurance cutting off benefits, life insurance refusing to pay death benefits, and uninsured/underinsured motorist claims. Any policy where you're both the policyholder and claimant can give rise to first-party bad faith.
You must show: (1) you had a valid claim under your policy, (2) the insurer unreasonably denied, delayed, or underpaid the claim, and (3) the insurer knew or should have known the claim was valid. Evidence includes your policy, claim documentation, denial letters, correspondence showing delays, independent estimates contradicting the insurer's valuation, and the insurer's internal claim file (which we subpoena in litigation).
Not necessarily. Insurers can legitimately deny claims that fall outside policy coverage. But if the denial misrepresents policy language, ignores clear coverage provisions, or relies on exclusions that don't apply, it may be bad faith. We analyze your policy and the denial to determine if the insurer's position is reasonable or pretextual.
Oklahoma allows: (1) the original claim amount, (2) consequential damages caused by the denial (additional expenses, property deterioration), (3) emotional distress damages, (4) interest on delayed payments, and (5) punitive damages if the conduct was reckless or intentional. There's no statutory cap on punitive damages in Oklahoma bad faith cases.
Oklahoma's statute of limitations is generally 2 years for tort-based bad faith claims, running from the date of the wrongful conduct. Breach of contract claims have a 5-year limitation. Because bad faith can involve ongoing conduct, determining when the clock starts requires legal analysis. Don't delay—consult an attorney promptly to preserve your rights.
Accepting partial payment doesn't waive your right to pursue additional amounts—but be cautious about signing anything. Insurers sometimes include release language in payment documents. Have your attorney review before signing. You're entitled to the full amount owed under your policy, and accepting less doesn't mean you agreed to less.
Difficult behavior alone isn't necessarily bad faith, but patterns of unreasonable conduct can establish it. Warning signs: excessive documentation demands, contradictory requirements, ignoring evidence, long unexplained delays, hostile communication, and rotating adjusters so you never get answers. Document every interaction—dates, times, names, what was said.
Yes. Public adjusters help document and negotiate your claim; they don't prevent bad faith claims. In fact, if your insurer continues lowballing even after a public adjuster provides independent documentation, that strengthens your bad faith case. Note that attorneys and public adjusters have different roles—attorneys litigate, public adjusters estimate damages.
First, get the denial in writing with specific reasons. Review your policy to understand whether the denial matches the policy language. Document everything about your loss. Don't give recorded statements without legal advice. Consult an attorney who can analyze whether the denial is legitimate or potential bad faith. Time limits apply, so act promptly.

Your Insurer Isn't Playing Fair. Neither Should You.

When your own insurance company refuses to honor your policy, you need an attorney who fights back. Free consultation, no fee unless we win.

Oklahoma Bad Faith Attorneys

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