Legal Question in Insurance Law in Oklahoma

My mother passed a month ago from a UIP, a rare lung disorder, though she never smoked. She had life insurance through the post office, as an employee of 20 yrs, so therefore federal insurance. Though it was originally for $100,000, my sister and I found she had accumilated it to $220,000. The life insurance company said they would mail out the death claim forms within 3 to 5 weeks. It has been over 4, and we have not heard from them as of yet, but, given, there is another week. However, the funeral home director called the company to inquire as to why they have not received their payment for their services from them. He was informed it would take them up to 2 months to confirm her permium payments were paid (though payments were deducted from a Worker's Comp check she received through the same company). They also told him how much my sister should receive, "If they choose to pay the full amount". What reason would they have not to? Should we be concerned? Thank you.


Asked on 5/07/10, 4:59 pm

1 Answer from Attorneys
Wayne Allison Allison Legal, LLC

I would not be surprised at the insurer taking a while to pay; the longer they take to pay, the more time they keep the money, which generates interest for them. The details of the policy is where you find the answer to your question. Insurance is based on a contract, which is the policy. Insurers have a legal duty to operate in good faith; if they don't, they can be sued for the tort of bad faith. The statement made to the funeral home is certainly a reason to be alert. I would suggest that,, if you don't get a timely response from the insurer, if they pay an unexpected amount, or if they say or write something you don't fully understand or believe, you should get an attorney familiar with insurance law and bad faith. I do not suggest you communicate with the insurer orally; rather, communication in writing (and keep a copy of everythinig you send and receive) is your better bet. As well, if you do communicate via phone, know that it is legal (ie, you can) record the conversation without informing the other party in Oklahoma. Insurance companies are notorious for their antics, and if you don't have a lawyer to help, you can find yourself effectively unarmed in a very complex scenario that they well understand.

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Answered on 5/12/10, 6:51 pm


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