Coverage Dispute "Reasonable Basis" to Avoid Georgia "Bad Faith" Penalties.

  Penalties for "Bad Faith" are not authorized under the Georgia "Bad Faith" Penalties Statute in cases where the Insurance Company in question has "'any'" reasonable ground to contest a claim and the case presents disputed questions of fact.

   It has been held that, under this rule of law, "a reasonable basis" to contest a claim includes a legitimate contention that the claim is not a "covered loss".  Lawyers Title Ins. Corp. v. Griffin, 2010 WL 774990 *4 (Ga. Ct. App. Case No. A09A1874 March 9, 2010)(Westlaw subscription required to access Westlaw):  "Given that Lawyers' non-payment was based on its contention that Griffin did not have a covered loss under the Policy, Lawyers had a reasonable basis to refuse Griffin's demand."

Please Read The Disclaimer.