Opinion ID: 165342
Heading Depth: 3
Heading Rank: 2

Heading: Sufficiency of Evidence on Bad Faith Claim

Text: National States asserts that the evidence was insufficient to establish a prima facie case of bad faith and, therefore, its motion for a directed verdict should have been granted. “When a jury verdict is challenged on appeal, our review is limited to determining whether the record– viewed in the light most favorable to the prevailing party– contains substantial evidence to support the 8 jury’s decision.” Bangert Bros. Constr. Co. , 310 F.3d at 1292 (quotation omitted). National States argues that the record does not support plaintiffs’ claims that it rescinded Mrs. Wright’s policy without considering whether she intended to misrepresent her medical condition and without adequately investigating her intent. It maintains that a more in-depth investigation would not have revealed any additional information because the evidence produced at trial did not add to the information Ms. Rogers had available to her at the time she made the decision to rescind the policy. The proper inquiry is not limited to whether National States had investigated or discerned Mrs. Wright’s intent. Rather, “the essence of the intentional tort of bad faith with regard to the insurance industry is the insurer’s unreasonable, bad-faith conduct, including the unjustified withholding of payment under a policy. . . .” McCorkle v. Great Atlantic Ins. Co. , 637 P.2d 583, 587 (Okla. 1981). The determination of what is reasonable is for the jury. See id. We conclude that the evidence sufficiently supports the jury’s verdict against National States. Plaintiffs demonstrated that (1) National States rescinded one third of the policies that it was not precluded by law from rescinding, (2) it did not consider the applicant’s intent or whether any errors were made in good faith, despite its own application form stating that the representations made on the 9 application were true to the best of the applicant’s knowledge and belief, (3) Mrs. Wright informed the agent of her cancer history, information which was imputed to National States, and (4) Ms. Rogers, who had no medical training, rejected the treating physician’s statement that Mrs. Wright was cancer-free as of June 1998 without attempting to resolve her differing view that Mrs. Wright was still being treated for cancer as of August 2000. Accordingly, we will not disturb the verdict.