Insurance Bad Faith Demand Letter
INSURANCE BAD FAITH DEMAND LETTER
[SENDER OR FIRM LETTERHEAD]
[DATE]
To: [INSURER AND CLAIMS CONTACT]
By: [CONFIRMED DELIVERY METHOD]
Re: Insured [NAME] | Policy [NUMBER] | Claim [NUMBER] | Loss [DATE]
Dear [CLAIMS CONTACT]:
I represent [INSURED] regarding [IDENTIFY CLAIM]. We request correction of the claim decision and payment of $[AMOUNT] under [EXACT POLICY PROVISION]. We also ask you to address the handling concerns described below. Any additional claim for insurer misconduct is based only on [IDENTIFIED CURRENT STATE AUTHORITY AND APPLICABLE STANDARD], if established after review.
Coverage and handling record
The policy issued to [INSURED] is [FORM, PERIOD AND ENDORSEMENTS]. The relevant coverage limit is [AMOUNT AND SOURCE / NOT CONFIRMED], and any deductible or waiting period is [AMOUNT OR PERIOD AND POLICY PROVISION / NONE IDENTIFIED]. Its relevant language states: “[EXACT POLICY LANGUAGE].” The loss, notice, proof, inspections, and insurer response occurred as follows:
| Date | Event | Record |
|---|---|---|
| [Date] | [Loss and notice] | [Record] |
| [Date] | [Documents or proof supplied] | [Record] |
| [Date] | [Insurer request, inspection or decision] | [Record] |
| [Date] | [Follow-up and response] | [Record] |
The insurer denied, reduced, or delayed [SPECIFIC ITEM] on [DATE], explaining [ACTUAL REASON]. That position does not address [SPECIFIC EVIDENCE OR POLICY LANGUAGE] because [FACTUAL ANALYSIS]. Our concern about claim handling is [SPECIFIC ACTION OR OMISSION], supported by [CORRESPONDENCE, CLAIM FILE ITEM OR OTHER EVIDENCE]. We do not assume that an adverse coverage decision alone establishes misconduct.
Amount and proposed resolution
| Component | Basis and supporting record | Amount |
|---|---|---|
| [Unpaid policy benefit] | [Policy term, estimate or invoice] | $[AMOUNT] |
| [Other documented amount, if recoverable] | [Specific authority and evidence] | $[AMOUNT] |
| Less prior payment | [Payment record] | ($[AMOUNT]) |
| Total requested | $[AMOUNT] |
Please pay the supported policy balance of $[AMOUNT] and provide a written explanation of any disputed item, quoting the controlling policy provision and addressing the records identified here. If you need another inspection or document, identify it and propose a date. Please respond by [REQUESTED DATE] to [CONTACT]. That date is a negotiation request and does not replace any policy or legal clock.
[INSURED] is willing to discuss [SPECIFIC SETTLEMENT TERMS, INCLUDING THE SCOPE OF ANY RELEASE]. We do not intend this letter to relinquish any policy claim. Please retain the claim correspondence, estimates, photographs, recordings, and decision records.
Sincerely,
[NAME]
[TITLE / FIRM, IF ANY]
[CONTACT INFORMATION]
Enclosures: [POLICY EXCERPT]; [CLAIM CORRESPONDENCE]; [PROOF AND ESTIMATES]; [OTHER]
About this template
- Last updated
- October 23, 2026
- Last reviewed
- October 23, 2026
- Jurisdiction
- All states
- Category
- Demand Letters
A demand letter is a formal written request to fix a problem or pay what is owed, sent before anyone files a lawsuit. It gives the other side a real chance to settle, creates a record of your attempt to resolve things, and in many cases (unpaid debts, insurance claims, broken contracts) starts a legally required response window. A well-written demand letter lays out what happened, what you want, and a deadline to act, which is often enough to get results without ever going to court.
Not legal advice
This template is provided for informational purposes. We recommend having an attorney review any legal document before signing, especially for high-value or complex matters.
Checked against the law it cites
A reviewer verified this template's legal citations against the official source on October 23, 2026.
WAC 284-30-330(13) (Washington claims-practice example; effective October 18, 2026) (checked October 23, 2026): "Failing to promptly provide a reasonable explanation of the basis in the insurance policy in relation to the facts or applicable law for denial of a claim or for the offer of a compromise settlement."
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