What is the GA fair claims act?
Practices the Act targets
An insurer violates the Act when it commits listed practices flagrantly or so often that they amount to a general business practice. Examples include:
- Knowingly misrepresenting relevant facts or policy provisions about the coverage at issue.
- Failing to acknowledge claim communications with reasonable promptness.
- Refusing to pay claims without a reasonable investigation.
- Not attempting in good faith to settle promptly and fairly once liability is reasonably clear.
- Forcing people to sue by offering substantially less than they ultimately recover.
- Failing to explain the basis for a denial or a compromise offer.
- Labeling a first-party payment as final or a release when the policy limit has not been paid and no settlement was agreed.
The deadlines behind it
The Commissioner's Rule 120-2-52-.03 turns the Act into deadlines for property claims: acknowledge the claim within 15 days, send any proof of loss forms within 15 days, notify you in writing with a reason if more time is needed, generally decide coverage within 60 days of notice unless waiting on information it requested, and pay within 10 days once coverage is confirmed and the amount is undisputed. Denials based on a policy provision must cite it in writing.
How homeowners use it
Because there is no private lawsuit under the Act, the practical tool is a complaint to the Commissioner's office. A lawsuit for refusing to pay a covered loss runs through the separate bad faith statute; see Georgia bad faith and roof claims. For filing steps, see how to file a complaint.