Bad Faith Insurance

Bad Faith And Genuine Conflict

July 20, 2015 | by Slappey & Sadd, LLC

Bad faith And Factual Position

An insurer’s defense “going far enough to show reasonable and probable cause for making it” vindicates the good faith of the insurer and precludes a finding of bad faith. The facts must, however, be “in genuine conflict” for the insurance company to be released from bad faith as a matter of law. Indeed, when faced with conflicting facts, the court’s duty is to “carefully scrutinize” those facts to preclude the insurance company from relying on “fanciful allegations of factual conflict to delay or avoid legitimate claims payment.”

Cincinnati Ins. Co. v. Kastner

Insurance Coverage: Timely Demand

July 15, 2015 | by Slappey & Sadd, LLC

What Is Considered Timely Demand?

A proper “demand” for payment that complies with O.C.G.A. § 33-4-6 is essential to recovery. In evaluating the sufficiency of a demand, a court should consider its purpose. The purpose of the demand requirement “is to adequately notify an insurer that it is facing a bad faith claim so that it may make a decision about whether to pay, deny or further investigate the claim within the 60-day deadline.”

On its face, the demand requirement is straightforward. The statute’s plain language would appear to require only that the insurer refuse to pay within 60 days of a demand. This straightforward language notwithstanding, courts have added additional requirements to the demand through case law.

Bad Faith Insurance: An Introduction

June 23, 2015 | by Slappey & Sadd, LLC

Because an insurance policy is a contract, any dispute implicating an insurer’s bad faith will involve the meaning of the words in the insurance policy. This is true no matter the type of bad faith at issue. Construction and interpretation of an insurance policy come into play in statutory bad-faith cases brought under O.C.G.A. § 33-4-6 as well as in bad-faith cases under the common law. Below we will look at the types of bad faith insurance.

Types Of Bad Faith Insurance

1. Withholding Payment