georgia insurance company bad faith
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Georgia Insurance Company Bad Faith
Bad Faith Defined
According to Wests Encyclopedia of American Law,bad faithis defined as the fraudulent deception of
another person; the intentional or malicious refusal to perform some duty or contractual obligation.
While individuals can and do make honest mistakes about their own duties and rights, bad faith is
demonstrated when the rights of another are maliciously, intentionally violated or infringed upon. The
presence of bad faith can nullify claims that one alleges in a lawsuit. Attorneys fees and/or punitive
damages can be granted to those who must defend themselves in actions brought in bad faith.
Bad faith includes the intentional refusal to fulfill a legal or contractual obligation, as well as the intention
to deceive or to mislead or a conscious refusal to fulfill some duty owed. It means that active bad will is
present as opposed to simple negligence. Bad faith must involve conscious wrongdoing and not just bad
judgment.
Georgia insurance companies owe a duty not to act in bad faith in the handling of claims. They have aduty to protect the interests of their insured customers. When Georgia insurance companies fail to fulfill
their duty to the insured, they may be held liable for more than the amount of the original claim, maybe
even more than the insured customers policy limits. Duty to the insured is considered breached under
Georgia law if liability has become reasonably clear and the insurance company offers less than the
amount reasonably owed to the customer under all circumstances of which the insurer is aware.
Bad faith handling of an Atlanta car accident may include the following:
The insurance company fails to provide the same consideration to the interests of its insuredcustomers that it does to its own interests.
The insurance company acts in an arbitrary or capricious manner. The insurance company refuses to consider an insured customers reasonable settlement offer. The insurance company acts based on the arbitrary belief that your claim is invalid or that the at-
fault party is not liable to you.
O.C.G.A. (Official Code of Georgia Annotated) Statutes:
Insurance companies are liable for penalties under O.C.G.A. (Official Code of Georgia Annotated) 33-4-6
when they fail to pay a covered loss within 60 days after demand for a payment has been made and there
has been a finding that the refusal to pay was in bad faith.
A proper demand for payment is essential for recovery. The demand notice must be sent by overnight
delivery or by certified mail with a return receipt requested. Merely filing a claim of loss with the
insurance company is not enough to obtain relief under Georgia statutes.
The words bad faith should also be used. Policy holders should assert that bad faith has been
demonstrated by the insurer. Once you make the written demand for payment, you must then wait 60
days before filing a lawsuit. However, if the statute of limitations on your claim is set to expire in less
than the 60 days, you should not wait to file suit even though you will lose the extra rights you have under
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Georgia bad faith statutes. Often, the written demand to your insurance carrier asserting bad faith will be
enough to cause the company to do what they should have done in the first place, but of course, this is not
always the case.
The statutory remedy O.C.G.A. 33-4-6 provides that insurance companies which act in bad faith may be
liable to the insured, in addition to the loss itself, not more than 50 percent of the liability or $5,000.00,
whichever is the greater amount. In addition, insurance companies are liable to the insured for all
reasonable attorneys fees.
O.C.G.A section 33-7-11 makes provisions for similar punitive damages and payment of attorneys fees
just as the first-party insurance statute does upon proof that the insurance company refused to pay an
uninsured motorist claim in bad faith. Unlike in the Georgia first-party insurance statute, penalties
awarded include payment of the covered loss and not more than 25 percent of the uninsured motorist
claim recovery. Like the first-party statute, this statute also provides for the recovery of reasonable
attorneys fees.
Georgia bad faith statutes help keep insurance companies in Georgia honest. Insurance carriers make
increased profits by not paying one dollar more than they are forced to pay, and often they inflate what
they consider their legal right to deny valid customer claims.
Some insurance companies are more responsible than others, and some must simply be reminded from
time to time that they have responsibilities to their customers. Some companies may even exhibit a
pattern of failing to pay claims. Once a policyholder brings a successful lawsuit against the company,
that company then may change its practices regarding the settling of claims.
If You or a Loved One Has Been the Vicitm of an Insurance Company Who Has Acted in Bad Faith
in Regard to a Claim,
Contact the Atlanta bad faith insurance attorneys at Millar & Mixon, LLC.
Call (877) 475-7618 or fill out our convenientonline contact form.
These articles are provided for informational purposes only and should not be considered legal advice.
Professional legal counsel should be sought for specific advice relevant to your circumstances.
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