Bill Text: GA HB450 | 2009-2010 | Regular Session | Introduced

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Bill Title: Insurance companies; liability for refusal to pay covered loss; change provisions

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2009-02-19 - House Second Readers [HB450 Detail]

Download: Georgia-2009-HB450-Introduced.html

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09 LC 37 0860

House Bill 450

By: Representative McKillip of the 115th

A BILL TO BE ENTITLED
AN ACT

To amend Chapter 4 of Title 33 of the Official Code of Georgia Annotated, relating to claims against insurance companies, so as to change provisions relating to an insurer's liability for a bad faith refusal to pay for a loss covered by insurance; to provide for related matters; to repeal conflicting laws; and for other purposes.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:

SECTION 1.

Chapter 4 of Title 33 of the Official Code of Georgia Annotated, relating to claims against insurance companies, is amended by revising subsection (a) of Code Section 33-4-6, relating to the liability of an insurer for damages and attorney's fees, as follows:

"(a) In the event of a loss which is covered by a policy of insurance and the refusal of the insurer to pay the same within 60 days after a demand has been made by the holder of the policy and a finding has been made that such refusal was in bad faith, the insurer shall be liable to pay such holder, in addition to the loss, not more than 50 percent of the liability of the insurer for the loss or $5,000.00, whichever is greater, and all reasonable attorney's fees for the prosecution of the action against the insurer, and, where appropriate, the trier of fact may award punitive damages. The action for bad faith shall not be abated by payment after the 60 day period nor shall the testimony or opinion of an expert witness be the sole basis for a summary judgment or directed verdict on the issue of bad faith. The amount of any reasonable attorneys fees shall be determined by the trial jury and shall be included in any judgment which is rendered in the action; provided, however, the attorney's fees shall be fixed on the basis of competent expert evidence as to the reasonable value of the services based on the time spent and legal and factual issues involved in accordance with prevailing fees in the locality where the action is pending; provided, further, the trial court shall have the discretion, if it finds the jury verdict fixing attorney's fees to be greatly excessive or inadequate, to review and amend the portion of the verdict fixing attorney's fees without the necessity of disapproving the entire verdict. The limitations contained in this Code section in reference to the amount of attorney's fees are not controlling as to the fees which may be agreed upon by the plaintiff and the plaintiff's attorney for the services of the attorney in the action against the insurer.

SECTION 2.

All laws and parts of laws in conflict with this Act are repealed.