Bad Faith Insurance Claims Handling
Bad faith is a legal standard, not a feeling. Carriers act in bad faith when they fail to investigate properly, deny without reason, or misrepresent coverage. Recognizing it is the first step to addressing it.
What is insurance bad faith?
Bad faith occurs when a carrier unreasonably denies or delays a valid claim, or fails to fulfill its contractual duties under your policy. In Georgia, bad faith can trigger penalties of up to 50% of the covered loss plus attorney's fees under O.C.G.A. § 33-4-6.
Common signs of bad faith handling
What to do if you suspect bad faith
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1
Build your documentation
Compile every interaction, dates, names, what was said or written. This is your evidence file.
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2
File a formal complaint with the Georgia OCI
The Office of Insurance and Safety Fire Commissioner has regulatory authority over carriers licensed in Georgia. A formal complaint often prompts action. Visit the Georgia OCI → The Georgia DOI consumer services line is 1-800-656-2298.
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3
Consult a licensed Georgia insurance attorney
Georgia's bad faith statute allows you to recover the loss amount plus a 50% penalty and attorney fees. Many insurance attorneys work on contingency for bad faith cases.
Important: statute of limitations
Georgia's bad faith action under O.C.G.A. § 33-4-6 has specific procedural requirements and time limits. Once you suspect bad faith, act promptly. Consult an attorney before the policy's suit limitation clause expires.
Common Questions
Frequently asked questions
How do I know if my insurance company is acting in bad faith?
Warning signs include unreasonable delays without explanation, a denial with no written reason, an offer far below documented repair costs, failure to respond to your calls or letters, or pressure to accept a quick settlement before you fully understand your damages.
What does O.C.G.A. Section 33-4-6 mean for policyholders?
O.C.G.A. Section 33-4-6 gives Georgia policyholders the right to sue for the claim amount plus a financial penalty and attorney fees if their insurer refused to pay a covered claim without reasonable cause.
What is insurance bad faith in Georgia?
Insurance bad faith in Georgia occurs when an insurer refuses to pay a legitimate claim, delays payment unreasonably, or engages in deceptive or unfair claims practices in violation of Georgia law.