Bad faith occurs when a party engages in fraud or dishonesty in a transaction. Bad-faith insurance claims in Macon, Georgia, occur when an insurer unreasonably refuses to pay a valid claim or delays payment without proper cause.
By acting in bad faith, the insurance company violates the duty of good faith and fair dealing required by Georgia law. If you have been denied the coverage you deserve, it is essential to understand your legal rights and remedies under Georgia’s statutes and case law.
First-Party vs. Third-Party Bad Faith Claims
Two types of bad-faith insurance claims may be filed.
First-Party Bad Faith Claims
First-party claims involve payments to an insured for their losses. Examples would include payments related to homeowner’s insurance, collision coverage, health insurance payments, etc. An insured may also have a claim against their insurance company if the company’s bad faith in handling a third-party claim caused the insured to sustain losses.
Third-Party Bad Faith Claims
Third-party claims are filed by individuals other than the insured. These claims usually involve liability insurance coverage. For example, an accident victim files a claim with the at-fault party’s auto insurance provider, or a person files an insurance claim with a property owner’s insurance provider for a slip-and-fall accident.
Georgia Laws Governing Bad Faith Insurance Claims
Some states recognize bad faith claims as common law torts. However, Georgia has specific statutes that provide remedies for bad-faith claims, including:
- O.C.G.A. §33-4-6: This statute applies to first-party insurance claims (claims made directly by the policyholder for losses covered by their policy, such as property damage).
- O.C.G.A. §33-7-11: This statute covers bad faith refusals to pay uninsured motorist (UM) claims.
- O.C.G.A. §33-4-7: This statute addresses insurer duties under motor vehicle liability policies to third-party claimants.
Each statute includes very specific requirements that must be met before a party can recover damages for a bad-faith claim. Legal counsel early in your case can help you protect your rights.
What Constitutes Bad Faith Insurance in Georgia
Bad faith by an insurance company generally refers to a frivolous and unfounded refusal to pay a claim or an unreasonable delay in payment, despite a clear obligation to do so under the insurance policy.
Examples of bad faith include:
- Denying a claim without any valid reason or explanation
- Refusing to pay a valid, covered claim
- Failing to investigate or settle claims in good faith
- Lowballing or refusing to settle a claim within policy limits when there is a reasonable opportunity to do so
- Threatens policyholders
- Fails to defend policyholders in a legal action
- Wrongfully and unreasonably delaying claims
- Failing to protect policyholders from judgments
- Refusing to pay a covered judgment or settlement
- Intentionally undervalues damages and losses
- Fails to honor valid uninsured/underinsured claims
- Misrepresents the terms of an insurance policy
There are many ways an insurance company may act in bad faith. The average time for insurance claims varies widely. However, if you believe an insurance company is acting in bad faith, seek legal advice as soon as possible.
You do not want to miss deadlines for filing bad-faith insurance claims.
Filing a Bad Faith Claim in Macon, GA
If an insurance company has acted in bad faith by delaying or denying a valid claim, you should document all communications with the insurance company, including:
- Creating logs of all telephone conversations, including the date, time, person, and subject matter
- Print and retain copies of all emails
- Keep copies of all correspondence received from the insurance company
Consult an experienced Macon bad-faith claim lawyer about your case. A personal injury lawyer can review your claim to determine if the denial or delay qualifies as bad faith.
They will help you navigate the complex statutory requirements for making a claim and represent you in litigation, if necessary, to obtain the money you deserve.
Have You Been the Victim of Bad Faith Insurance Tactics in Macon, GA?
For Macon, Georgia, residents dealing with bad faith insurance issues, The King Firm Car Accident and Personal Injury Lawyers offers skilled representation to ensure your insurer honors your policy and you receive the compensation you deserve under Georgia law.
For guidance specific to your insurance claim, contact our team at (229) 386-1376 for a free consultation with a Macon bad faith insurance lawyer.
