INSURANCE BAD FAITH DEMAND LETTER – ILLINOIS

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]

1. INTRODUCTION

This letter demands immediate payment. Insurer's continued delay exposes it to liability under 215 ILCS 5/155 (Section 155).

2. FACTUAL BACKGROUND

• Date of Loss: [DATE] — [describe loss]
• Coverage: [$LIMITS]
• Status: [Unpaid / Underpaid / Denied]

3. LEGAL BASIS – ILLINOIS BAD FAITH (SECTION 155)

Under 215 ILCS 5/155, if an insurer's delay in settling a claim is vexatious and unreasonable, the court may award:
- Reasonable attorney's fees and costs; plus
- An additional sum not to exceed $60,000 or 60% of the amount recovered, whichever is greater.

4. DAMAGES

• Policy benefits: [$AMOUNT]
• Section 155 damages (up to 60% of recovery)
• Attorney's fees and costs

5. DEADLINE

[DATE – 30 days]

Signed:
[Name / Attorney]
[Contact Information]