What 60-day demand must I send before suing my Georgia insurer for bad faith?
Before a first-party bad-faith claim against a Georgia insurer can proceed, the policyholder must make a demand and give the insurer 60 days to pay the covered loss. O.C.G.A. § 33-4-6 builds this 60-day demand into the claim as a condition that must be satisfied first.
Why the demand exists ¶
The statute does not penalize an insurer the instant a claim is disputed. Instead, it gives the company a defined window to reconsider and pay before bad-faith exposure attaches. The policyholder makes a demand for the amount owed under the policy, and the 60-day clock starts. If the insurer pays within that period, the statutory penalty generally does not apply. Only a refusal that persists past the 60 days, and that lacks reasonable justification, can support the penalty.
This sequencing protects insurers from being punished for good-faith disagreements while still pressuring them to pay clear claims promptly.
What the demand should accomplish ¶
While the statute focuses on the fact of a demand and the 60-day window, a demand serves its purpose best when it leaves no doubt about what is owed. Georgia courts have read the requirement strictly, so a demand that merely voices dissatisfaction with claim handling is treated as insufficient. Practically, an effective written demand tends to:
- Identify the policy and the covered loss at issue.
- State the specific amount the insurer is being asked to pay.
- Communicate clearly that payment is demanded and that bad-faith litigation may follow if the claim is not paid, triggering the 60-day period.
After the demand, the insurer has its 60 days to act. Importantly, an insurer’s payment after that period has run does not automatically defeat a bad-faith claim, because the action is not abated simply by late payment if the earlier refusal was unjustified.
The bottom line ¶
A first-party bad-faith claim under O.C.G.A. § 33-4-6 cannot move forward until the policyholder has demanded payment and allowed the insurer 60 days to respond. The demand starts the clock, the 60-day window gives the insurer a chance to cure, and only a frivolous or unfounded refusal that outlasts that period opens the door to the statutory penalty. When bad faith is found, that penalty can reach the greater of 50 percent of the insurer’s liability for the loss or $5,000, plus reasonable attorney’s fees, on top of the covered amount itself.
This article is for general educational and informational purposes only and is not legal advice. It does not create an attorney-client relationship, and Georgia law may change. For advice about a specific situation, consult a licensed Georgia personal injury attorney.