georgia insurance company bad faith

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  • 8/3/2019 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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