Bad Faith Insurance Claims

Atlanta Car Insurance Bad Faith

Car insurance companies have certain obligations to their customers, the policyholders. While these obligations fall into a number of categories ranging from ethical to professional, some of them are regulated by law. This is known as fiduciary responsibility or duty, the legal name for the relationship between two or more parties concerning management of money or other property. Theoretically, insurance companies should always put the interests of their clients ahead of their own and adhere to the standard of care accepted within their profession; however, this may not always be the case. If you believe your insurance company is acting in bad faith, contact our firm for a free case evaluation.

Acting in “good faith” is one of the core elements of fiduciary duty. A party acting in good faith has sincere intentions, regardless of the outcome of their actions. When a car insurance company acts in bad faith, its intentions are knowingly not in the best interest of the client. An insurance company acting in bad faith may not ensure that the insured receives an answer to his or her claim within a reasonable period of time, and could deny a claim frivolously or without reason.

Bad Faith Car Accident Claims

The intentional delaying, denying, or withholding of legitimate Atlanta car insurance claims by an insurance company constitutes car insurance bad faith. If a car accident insurance claim is denied, it must be done within a reasonable period of time, and the insurer must explain the reason for the denial in accordance with the policy the insured has taken out. If a claim is to be settled, it also must be done within a reasonable period of time. If unnecessary paperwork is used to delay an answer to a claimant or if the insurance company does not return communication, it may be grounds for a bad faith lawsuit.

According to O.C.G.A. § 33-4-6, if a first party insurance claim is denied in bad faith, the policyholder is entitled to up to 50% of the denied claim in damages, in addition to the original claim amount. Additionally, the insurance company must also pay any applicable attorney’s fees which arise in a bad faith insurance lawsuit.