Insurer Not Liable For $5.3M Crash Award, Ga. Justices Say

Law360 (March 11, 2019, 8:28 PM EDT) -- The Georgia Supreme Court on Monday ruled that First Acceptance Insurance Co. is not liable for a $5.3 million verdict against its policyholder in litigation over a car crash, finding that the insurer in the closely watched case didn't act negligently or in bad faith when it failed to settle the claim within policy limits.

In a unanimous opinion, the Georgia high court clarified its precedent and said an insurance carrier's duty to settle a claim against its policyholder arises when an injured claimant presents a "valid offer" to settle within policy limits.

Here, First Acceptance's policyholder, Ronald Jackson, caused a...

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