INSURANCE BAD FAITH DEMAND LETTER – CALIFORNIA

To: [Insurance Company Name, Claims Department Address]
From: [Insured/Claimant Name, via Counsel if applicable]
Date: [DATE]
Claim Number: [CLAIM NUMBER]
Policy Number: [POLICY NUMBER]
Insured: [INSURED NAME]
Date of Loss: [DATE OF LOSS]
Type of Coverage: [Coverage Type]

1. INTRODUCTION AND PURPOSE

This letter constitutes a formal demand to [INSURANCE COMPANY] ("Insurer") for immediate payment of all benefits owed under the above-referenced policy. Insurer's handling of this claim constitutes bad faith in violation of California law.

2. FACTUAL BACKGROUND

• Date of Loss: [DATE] — [describe loss]
• Timely Notice: Insurer notified on [DATE]
• Cooperation: Insured has fully cooperated with all requests
• Coverage: Covered loss under [coverage type] with limits of [$LIMITS]

3. CLAIM HISTORY AND INSURER'S CONDUCT

• [DATE]: Claim submitted with complete documentation
• [DATE]: Acknowledgment received / investigation commenced
• [DATE]: [Describe delays, lowball offers, denials, or misconduct]
• Current status: [Unpaid / Underpaid by $X / Denied without basis]

4. LEGAL BASIS – CALIFORNIA BAD FAITH

Implied Covenant of Good Faith and Fair Dealing

Under California law, every insurance policy contains an implied covenant of good faith and fair dealing. An insurer breaches this covenant when it unreasonably withholds policy benefits. Gruenberg v. Aetna Ins. Co., 9 Cal.3d 566 (1973).

Fair Claims Settlement Practices

California's Fair Claims Settlement Practices Regulations (Cal. Code Regs. tit. 10, § 2695 et seq.) require insurers to:
- Acknowledge claims within 15 days;
- Accept or deny claims within 40 days;
- Conduct thorough, fair investigations;
- Not misrepresent policy provisions.

Insurer's Violations

• ☐ Failed to acknowledge claim within 15 days (§ 2695.5(e));
• ☐ Failed to accept or deny within 40 days (§ 2695.7(b));
• ☐ Failed to conduct fair investigation (§ 2695.7(d));
• ☐ Misrepresented policy terms (§ 2695.7(b)(1));
• ☐ Unreasonably delayed payment without basis.

5. DAMAGES

Insured demands:
- Policy benefits owed: [$AMOUNT]
- Consequential/emotional distress damages: [$AMOUNT]
- Total Demand: [$TOTAL]

If litigation becomes necessary:
- Brandt fees: Attorney's fees incurred to obtain policy benefits (Brandt v. Superior Court, 37 Cal.3d 813 (1985));
- Punitive damages under Cal. Civ. Code § 3294 (oppression, fraud, or malice);
- Pre- and post-judgment interest;
- Costs of suit.

6. DEMAND AND DEADLINE

Deadline: [DATE – 30 days]

Failure to respond and pay will result in immediate litigation for breach of contract, breach of the implied covenant of good faith and fair dealing, and punitive damages.

7. PRESERVATION NOTICE

Insurer is hereby directed to preserve all documents, communications, and ESI relating to this claim, including the complete claim file, reserve information, adjuster notes, and all internal and external communications.

8. ATTACHMENTS

• Exhibit A: Policy and declarations page
• Exhibit B: Proof of loss / damage documentation
• Exhibit C: Claim correspondence history
• Exhibit D: Estimates, invoices, or medical records

Signed:
[Name]
[Attorney for Insured / SBN]
[Firm Name]
[Address / Phone / Email]