The statute opens with the requirement that there be a “loss” covered by a policy. Thus, the insured must prove that the loss for which payment sought is covered under the insurance policy at issue. Where the claim is not covered, the insurer has no obligation to pay and there can be no bad faith.
The vast majority of cases applying O.C.G.A. § 33-4-6 involve the insurance company’s failure to pay a loss under “first-party” coverage. First-party coverage includes claims involving only the insured and the insurer, such as payment for property damage to a home following a fire or the payment of benefits under a life or disability policy.
Leader Nat. Ins. Co. v. Kemp & Son