Insurance coverage protects individuals from losses that may result from accidents or medical problems. Insurance companies are obligated by Georgia state law to conduct business in a just manner, carrying out their service as promised to the consumer — or in “good faith” as the law states. However, as evidenced by many lawsuits, insurance businesses sometimes operate by “bad faith” practices instead.
While insurance bad faith lawsuits can arise in any insurance area, including car, home, and medical, the most common area for these situations is in motor vehicle crashes or incidents. Two typical ways in which an insurance company may act in bad faith include the following scenarios:
- Neglecting to pay a policy holder the full amount of insurance entitled: For example, if an injured party holds an insurance premium for $50,000 in coverage and the full amount of expenses incurred by the individual is $30,000, the insurance company is required to cover that full amount. If acting in bad faith, the business may offer a smaller settlement for various reasons or no reason at all.
- Rejecting genuine claims: In these situations, an insurance company may completely deny a fully legitimate claim by a policy holder, regardless of the policy holder’s coverage, without proper acknowledgement or examination of the claim.
Specifically, Georgia law (O.C.G.A. § 33-4-7) mandates that in the event of property damages or injuries resulting from a motor vehicle accident covered by an insurance provider, the company has an obligation to “to adjust that loss fairly and promptly.”
When an insurance company is found in violation of good faith laws, it is not only obligated to pay the policy holder for his or her losses, but they are also subject to potentially pay the claimant further penalties and fees resulting from the bad faith. If you think you’ve been the victim of bad faith practices by an insurance company in Georgia, contact the insurance bad faith attorneys in Georgia with Wayne Grant at 1(866) 249-5513. Call for a complimentary and confidential case review.