INSURANCE BAD FAITH DEMAND LETTER – PENNSYLVANIA

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. Insurer's conduct constitutes bad faith under 42 Pa. C.S. § 8371.

2. FACTUAL BACKGROUND

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

3. LEGAL BASIS – PENNSYLVANIA BAD FAITH (42 Pa. C.S. § 8371)

Statutory Bad Faith

Pennsylvania provides robust statutory remedies for bad faith. Under 42 Pa. C.S. § 8371, if an insurer acts in bad faith, the court may award:
- Interest on the amount of the claim at prime rate + 3%;
- Punitive damages;
- Court costs and attorney's fees.

Bad Faith Standard

Bad faith requires proof that the insurer (1) lacked a reasonable basis for denying benefits and (2) knew or recklessly disregarded that lack of basis.

4. DAMAGES

• Policy benefits: [$AMOUNT]
• Interest at prime + 3%
• Punitive damages
• Attorney's fees and court costs

5. DEADLINE

Payment due by: [DATE – 30 days]

Signed:
[Name / Attorney]
[Contact Information]