Georgia Supreme Court Orders Geico to Pay $2.7 Million After Refusal of $30,000 Settlement
GEICO Indemnity Co.’s refusal to settle a bodily injury claim for $30,000 will cost it more than $2.7 million, under a ruling Monday by the Georgia Supreme Court.
The high court’s 7-0 decision answered three certified questions posed to it by a federal appellate court, effectively finding that GEICO is liable for bad faith under Georgia insurance law. The ruling clears the way for the 11th Circuit Court of Appeals to order GEICO to pay a jury award in favor of an injured bicyclist.
In February 2012, Bonnie Winslett struck Terry Guthrie’s bicycle while driving her friend Karen Griffis’ Ford Explorer to a store, causing back and neck injuries. GEICO insured Griffis’ vehicle. The insurer wrote a letter to Winslett stating that she was insured by the policy and that GEICO was responsible for the accident, but didn’t give her any other instructions.
