What is insurance bad faith in Georgia?

What is insurance bad faith in Georgia?

Insurance bad faith in Georgia occurs when an insurance company refuses to honor a valid claim without a reasonable basis, or unreasonably delays payment. Under O.C.G.A. § 33-4-6, an insurer that acts in bad faith owes the policyholder a 25% penalty on the claim value, plus attorney’s fees. Georgia courts — including the Georgia Court of Appeals and the Supreme Court of Georgia — have interpreted bad faith broadly to protect policyholders. Bad faith can take the form of outright denial, unreasonable delay, inadequate investigation, lowball offers, or misrepresentation of policy terms.