The 60-day demand letter that starts Georgia's bad-faith penalty

Georgia does not let a policyholder recover a bad-faith penalty for a late payment unless the insurer was given a written demand and sixty days to pay. That single procedural step decides more Georgia claim disputes than the merits do.

What the statute says

(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. The action for bad faith shall not be abated by payment after the 60 day period…

(b) In any action brought pursuant to subsection (a) of this Code section, and within 20 days of bringing such action, the plaintiff shall, in addition to service of process in accordance with Code Section 9-11-4, mail to the Commissioner of Insurance a copy of the demand and complaint by first-class mail. Failure to comply with this subsection may be cured by delivering same.

The sequence the statute creates

1. Demand. A written demand for the amount owed, delivered to the insurer. The sixty days run from the demand, not from the date of loss.
2. Wait sixty days. Payment inside the window removes the penalty. Payment after it does not: the statute says the action "shall not be abated by payment after the 60 day period."
3. File and mail. Within twenty days of bringing the action, send a copy of both the demand and the complaint to the Commissioner of Insurance by first-class mail. Subsection (b) allows a cure by later delivery, but there is no reason to rely on it.
4. Prove bad faith. The penalty requires a finding that the refusal was in bad faith. The statute also says expert testimony alone cannot carry that finding on summary judgment.

What it does not settle

• "Not more than 50 percent" is a ceiling, not an entitlement. The amount is discretionary within that limit, with a $5,000 floor where it is greater.
• The penalty is not the claim. The loss itself is recovered under the policy; this section adds damages and fees on top.
• Fees are decided by the jury on expert evidence of reasonableness, subject to the trial court's review.
• It is not a deadline extender. Contract and bad-faith limitation periods run on their own track and are not paused by sending a demand.

How to use it on a claim

1. Put the demand in writing and state the amount, how it is calculated, and the policy basis for it.
2. Keep proof of delivery. The sixty days are measured from receipt.
3. Calendar day sixty and record every communication after it.
4. Document the refusal, not just the delay: the statute turns on refusal to pay, and on bad faith in that refusal.
5. Get advice before filing. This section sits inside a lawsuit, and the deadline analysis is fact-specific.

Sources

O.C.G.A. § 33-4-6, read at codes.findlaw.com on 24 October 2026 (text current as of 28 March 2024). For the current official version, check the Georgia Secretary of State's compilation.

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