Bad Faith Insurance Claims Handling

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

• ⚠ Denial without citing a specific policy provision
• ⚠ Repeated requests for documents you've already submitted
• ⚠ Failure to acknowledge or respond within required timeframes
• ⚠ Settlement offers significantly below documented loss without explanation
• ⚠ Misrepresentation of policy terms or coverage
• ⚠ Failure to conduct a prompt and thorough investigation
• ⚠ Pressure to accept a quick settlement before full damage is assessed

What to do if you suspect bad faith

1. 1
   Build your documentation

   Compile every interaction — dates, names, what was said or written. This is your evidence file.

2. 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.

3. 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.