INSURANCE BAD FAITH DEMAND LETTER – DELAWARE

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. Insurer's handling of this claim constitutes bad faith under Delaware law.

2. FACTUAL BACKGROUND

• Date of Loss: [DATE] — [describe loss]
• Timely Notice: Provided on [DATE]
• Cooperation: Full cooperation provided
• Coverage: Covered loss with limits of [$LIMITS]

3. CLAIM HISTORY AND INSURER'S CONDUCT

• [DATE]: Claim submitted
• [DATE]: [Describe delays, denials, or misconduct]
• Current status: [Unpaid / Underpaid / Denied]

4. LEGAL BASIS – DELAWARE BAD FAITH

Under Delaware law, insurers owe a duty of good faith and fair dealing. Bad faith occurs when an insurer denies or delays a claim without reasonable justification. Tackett v. State Farm Fire & Cas. Ins. Co., 653 A.2d 254 (Del. 1995).

Additionally, 18 Del. C. § 2304 prohibits unfair claims settlement practices.

5. DAMAGES

Insured demands:
- Policy benefits: [$AMOUNT]
- Total Demand: [$AMOUNT]

If litigation required:
- Punitive damages for egregious conduct
- Attorney's fees and costs

6. DEMAND AND DEADLINE

Deadline: [DATE – 30 days]

Failure to pay will result in litigation for breach of contract and bad faith.

7. PRESERVATION NOTICE

Preserve all claim file documents and communications.

8. ATTACHMENTS

• Exhibit A: Policy declarations
• Exhibit B: Loss documentation
• Exhibit C: Correspondence history

Signed:
[Name / Attorney]
[Contact Information]