INSURANCE BAD FAITH DEMAND LETTER – MARYLAND

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]
Claim Type: [First-Party / UM-UIM / Property]

1. INTRODUCTION

This letter demands immediate payment of all benefits owed under the above-referenced policy.

2. FACTUAL BACKGROUND

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

3. LEGAL BASIS – MARYLAND BAD FAITH

First-Party Bad Faith Standard

Maryland recognizes first-party bad faith when an insurer denies a claim without a "fairly debatable" reason. If there is no legitimate dispute, denial constitutes bad faith.

Unfair Claim Settlement Practices (Md. Code Ins. § 27-303)

Maryland's statute prohibits:
- Misrepresenting policy provisions;
- Failing to acknowledge claims within 15 working days;
- Failing to affirm or deny coverage within reasonable time;
- Not attempting good faith settlement when liability is clear.

4. DAMAGES

• Policy benefits: [$AMOUNT]
• Consequential damages
• Punitive damages (requires actual malice)
• Attorney's fees and costs

5. DEADLINE

Payment due by: [DATE – 30 days]

Signed:
[Name / Attorney]
[Contact Information]