What is Bad faith?

Definition. In Georgia insurance law, an insurer's refusal to pay a covered loss without reasonable grounds. Under O.C.G.A. 33-4-6, a bad faith refusal to pay within 60 days of a demand can add a penalty of up to 50 percent of the insurer's liability or $5,000, whichever is greater, plus attorney's fees. See bad faith and roof claims in Georgia.