Bad faith denial of insurance claims
By David Walker, Attorney at Law
Claim denied? These are the words no one wants to hear in response to an insurance claim. You have submitted your claim, the premium was paid, but you are turned down.
Is there any remedy? Of course, you can file suit against your insurance company. There is another step that should be considered prior to save when a claim is denied. This is a 60 day demand notice to the insurance company that the insured will seek bad-faith penalties if suit must be filed.
Under Georgia law, bad-faith penalties include $5000 or 50% of the amount of the claim, whichever is greater, plus attorney fees.
Not every claim denial is necessarily a matter of bad faith. There may be a policy provision that justifies the denial, such as exclusion. However, if there does not seem to be a good reason for the claim to be denied, a bad-faith notice can be a useful step to take. Such notice must be sent by certified mail, return receipt requested. A lawsuit should not be filed prior to running of the 60 day notice period. This notice can give the insurance company additional incentive to settle a claim.
For more information call (770) 972-3803 or visit http://www.walker-law-firm.com/
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2330 Scenic Hwy, Suite 208
Snellville, GA 30078
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Duluth, GA 30097