Opinion ID: 1441346
Heading Depth: 1
Heading Rank: 3

Heading: an insurer has the right to litigate any claim to which the insurer has a reasonable defense.

Text: Under Oklahoma Law, the only tort recognized by this Court in connection with a breach of insurance contract is [w]here there is a clear showing that the insurer unreasonably, and in bad faith, withholds payment of the claim of its insured. McCorkle v. Great Atlantic Ins. Co., 637 P.2d 583, 587 (Okl. 1981). Washington National denied Mr. Claborn's claim and rescinded his policy based on the inaccuracies in the application to which Claborn admitted in the letter dated January 7, 1989. There is no bad faith when the insurer's denial of a claim is based on a legitimate dispute between the insurer and the insured. Id. Furthermore, in Buzzard v. Farmers Ins. Co., 824 P.2d 1105, 1106 (Okl. 1991), this Court held that [a]n insurer clearly has the right to litigate any claim to which the insurer has a reasonable defense. Washington National rescinded Mr. Claborn's contract based on the material misrepresentations in the application to which he admitted. Such a defense is provided by Oklahoma Statute. [3] These facts made him uninsurable without a rider covering the seizure disorder. Washington National did not act in bad faith in wishing to litigate this matter. As the bad-faith claim was improperly placed before the trier of fact, any award of punitive damages was error. Claborn also argues that by selling an insurance policy, which did not contain the same benefits as the pre-existing State Farm policy, Washington National acted in bad faith. However, as previously stated, the conduct of the insurer and the agent in selling and issuing the policy, cannot give rise to the tort of bad faith breach of an insurance contract. McCorkle at 587. Therefore, judgment of the trial court is reversed. CERTIORARI PREVIOUSLY GRANTED; COURT OF APPEALS OPINION VACATED; TRIAL COURT JUDGMENT REVERSED AND REMANDED WITH DIRECTIONS TO DISMISS. KAUGER, V.C.J., and LAVENDER, SIMMS, HARGRAVE, SUMMERS and WATT, JJ., concur. ALMA WILSON, C.J., by separate opinion, and OPALA, J., concur in part and dissent in part. HODGES, J., dissents.