Southern General Insurance v. Holt

Fletcher, Justice.

We granted the writ of certiorari to determine whether an insured has a claim for bad faith against an insurance company for its failure to settle a claim within the policy limits based on a time-limited settlement offer by the injured person’s attorney. We affirm the Court of Appeals’ decision upholding the jury verdict against the insurance company for bad faith refusal to settle, but reverse the award of punitive damages to the insured.

Bridget Holt drove her automobile through a stop sign and injured Geneva Fortson on June 19, 1987. Holt’s liability for the collision is…