What is insurance bad faith in Georgia?

When an insurance company refuses to treat you fairly, it may be acting in bad faith. If proven, the insurance company may have to may pay you more than the amount of your claim. It would also have to pay penalties and your attorney's fees.

So what is insurance bad faith? How can you prove an insurance company was acting in bad faith when it refused to pay your claim?

Under Georgia law, simply not paying an auto, property damage or business loss claim does not in itself constitute "bad faith." The insurance company would be acting in bad faith only if it did so wrongfully. A number of actions may be considered wrongful-or as acting in bad faith:

  • Failing to investigate your claim on a timely basis
  • Withholding undisputed funds
  • Denying claims without a reasonable basis
  • Lowballing its evaluation of your losses
  • Forcing you to jump through hoops to obtain money owed under the policy
  • Failing to defend you if you are sued, when it has an obligation to do so under the policy

The distinctions between legal denial of a claim and wrongful (or bad faith) denial can be subtle, and only an experienced insurance attorney can tell you if you have a potential bad faith claim.

The law firm of Stone Law Group in Atlanta offer s free initial consultation to discuss insurance bad faith. Call 404-436-2766 for a free initial consultation.

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