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Georgia Insurance Bad Faith Law: O.C.G.A. § 33-4-6

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  • Georgia Insurance Bad Faith Law: O.C.G.A. § 33-4-6

If your own insurance company refuses to pay a covered claim in bad faith, Georgia law punishes it. You must first send a written demand and wait 60 days. If the insurer still refuses, and a jury finds bad faith, the insurer owes the claim plus a penalty. The penalty is up to 50 percent of the claim or $5,000, whichever is greater, plus your attorney fees.

What the Law Says

O.C.G.A. § 33-4-6, Liability of insurer for damages and attorney’s fees, states:

(a) In the event of a loss which is covered by a policy of insurance and the refusal of the insurer to pay the same within 60 days after a demand has been made by the holder of the policy and a finding has been made that such refusal was in bad faith, the insurer shall be liable to pay such holder, in addition to the loss, not more than 50 percent of the liability of the insurer for the loss or $5,000.00, whichever is greater, and all reasonable attorney’s fees for the prosecution of the action against the insurer. The action for bad faith shall not be abated by payment after the 60 day period nor shall the testimony or opinion of an expert witness be the sole basis for a summary judgment or directed verdict on the issue of bad faith. The amount of any reasonable attorney’s fees shall be determined by the trial jury and shall be included in any judgment which is rendered in the action; provided, however, that the attorney’s fees shall be fixed on the basis of competent expert evidence as to the reasonable value of the services based on the time spent and legal and factual issues involved in accordance with prevailing fees in the locality where the action is pending; provided, further, that the trial court shall have the discretion, if it finds the jury verdict fixing attorney’s fees to be greatly excessive or inadequate, to review and amend the portion of the verdict fixing attorney’s fees without the necessity of disapproving the entire verdict. The limitations contained in this Code section in reference to the amount of attorney’s fees are not controlling as to the fees which may be agreed upon by the plaintiff and the plaintiff’s attorney for the services of the attorney in the action against the insurer.

(b) In any action brought pursuant to subsection (a) of this Code section, and within 20 days of bringing such action, the plaintiff shall, in addition to service of process in accordance with Code Section 9-11-4, mail to the Commissioner of Insurance a copy of the demand and complaint by first-class mail. Failure to comply with this subsection may be cured by delivering same.

You can read the full statute on the Georgia General Assembly’s official code site.

In Plain English

This law covers “first-party” claims. That means a claim you make under your own policy. Examples include collision coverage on your car, medical payments coverage, and homeowner’s claims. It does not cover claims against the other driver’s insurer. That is a “third-party” claim, and a different statute applies to it.

Bad faith means the insurer had no reasonable ground to refuse your claim. If the insurer had a real, honest dispute about coverage or value, that is not bad faith, even if it turns out to be wrong. Georgia courts have held that the insurer must have acted with a frivolous or unfounded refusal. This is a high bar.

There are strict steps. First, you must make a demand for payment. The demand should be in writing and should say how much you want. Second, you must wait 60 days. The insurer must have refused to pay within that time. Third, you sue and a jury must find the refusal was in bad faith. Courts have also held that the demand must come when the insurer could have paid within 60 days, so timing matters.

If you win, you get three things. You get the amount the insurer owed on the claim. You get a penalty of up to 50 percent of that amount or $5,000, whichever is greater. And you get reasonable attorney fees. The jury sets the fee amount based on expert evidence about the work involved.

The insurer cannot escape by paying late. Under the statute, paying after the 60 days does not end your bad faith claim. The insurer also cannot win the case just by having an expert say it acted reasonably.

There is one paperwork step. Within 20 days of filing suit, you must mail a copy of your demand and complaint to the Insurance Commissioner. If you miss this, you can fix it by sending the papers later.

Uninsured motorist claims have their own bad faith rule. It is in subsection (j) of O.C.G.A. § 33-7-11. Its penalty is up to 25 percent of the recovery or $25,000, whichever is greater. See our UM coverage page for details.

Example

Renee has collision coverage on her SUV. On January 12, 2026, she slides on ice in Rome, Georgia, and hits a guardrail. Repairs cost $14,000. Her insurer denies the claim. It says she “must have been speeding.” The police report shows she was driving under the limit, and the insurer never asked any witnesses.

Renee’s lawyer sends a written demand for $14,000 on February 1. The insurer does nothing for 60 days. Renee sues on April 10 and mails copies to the Insurance Commissioner on April 15. At trial, the jury finds the denial was in bad faith. Renee gets her $14,000, a $7,000 penalty (50 percent), and $12,000 in attorney fees.

Key Points to Remember

  • Section 33-4-6 applies to claims under your own insurance policy.
  • You must send a demand and give the insurer 60 days to pay.
  • A jury must find the insurer’s refusal was in bad faith, meaning no reasonable basis.
  • The penalty is up to 50 percent of the claim or $5,000, whichever is greater, plus attorney fees.
  • Paying after the 60-day window does not save the insurer from the penalty.
  • Mail your demand and complaint to the Insurance Commissioner within 20 days of filing suit.
  • Uninsured motorist claims use a separate bad faith rule with a larger penalty.

Related Georgia Laws

Official Sources

This page is general legal information, not legal advice. Laws change and every case is different. Talk to a licensed Georgia attorney about your situation.