Insurance Demand Letter - Alabama

ALABAMA INSURANCE CLAIM SETTLEMENT DEMAND

This is an offer-development and evidence-presentation form. It does not
establish coverage, concede a defense, satisfy an unidentified condition,
create insurer default, impose a statutory cure period, or create a private
remedy under Ala. Code § 27-12-24.

1. Claim and Authority Profile — Complete Before Sending

A. Claim classification

• ☐ First-party claim: the claimant seeks benefits under the claimant's own policy.

• ☐ Third-party liability claim: the claimant seeks settlement of a claim against an insured.

• ☐ UM/UIM, medical-payment, disability, life, health, property, workers' compensation, or other specialized claim: [________________________________]

Do not combine different claim types without identifying the policy language, parties, procedures, defenses, and remedies applicable to each.

B. Policy and parties

C. Current-law and deadline map

Do not use a generic two-year limitations statement. Classification, accrual, policy limitations, tolling, relation back, minors, estates, government defendants, workers' compensation, federal plans, and specialized coverage may alter the analysis. Sending this demand does not automatically extend any independent deadline.

D. Alabama unfair-practice caution

Ala. Code § 27-12-24 addresses refusal to pay or settle without just cause and with such frequency as to indicate a general business practice, evidenced by complaint, lawsuit, or other relevant patterns. Do not describe a single disputed claim, missed response date, low offer, or denial as a statutory § 27-12-24 violation without facts and current authority supporting every element. The section does not supply this form with a universal 15-day response, 30-day cure, automatic default, attorney-fee award, punitive-damages entitlement, or policy-limits consequence.

2. Delivery Header

Date: [__/__/____]

Via: [POLICY-COMPLIANT DELIVERY METHOD]

[INSURER / CLAIMS ADMINISTRATOR]

Attn: [ADJUSTER / AUTHORIZED DEPARTMENT]

[ADDRESS / APPROVED EMAIL / PORTAL]

Re:

Claimant: [________________________________]

Insured: [________________________________]

Policy No.: [________________________________]

Claim No.: [________________________________]

Date of Loss: [__/__/____]

Dear [CLAIM REPRESENTATIVE]:

I represent [CLAIMANT NAME] concerning the claim identified above. This letter presents the presently available liability, coverage, injury, and damages information and offers to resolve [IDENTIFY THE CLAIMS] against [IDENTIFY EACH PROPOSED RELEASED PERSON OR ENTITY] on the terms stated below.

Please direct communications concerning this demand to:

[NAME / FIRM]

[ADDRESS]

[EMAIL]

[PHONE]

3. Incident and Liability Presentation

A. Factual chronology

[STATE THE MATERIAL EVENTS IN DATE ORDER. IDENTIFY PERSONAL KNOWLEDGE, DOCUMENTED FACT, WITNESS INFORMATION, EXPERT OPINION, AND CONTENTION SEPARATELY.]

B. Liability position

[STATE THE CLAIMANT'S THEORY AND THE FACTS SUPPORTING EACH REQUIRED ELEMENT. ADDRESS KNOWN DISPUTES, DEFENSES, CAUSATION, AND ANY CONTRIBUTORY-FAULT ISSUE ONLY AFTER COUNSEL CHECKS CURRENT CLAIM-SPECIFIC ALABAMA LAW.]

Nothing in this form makes liability “clear,” “undisputed,” or legally established. Use those descriptions only if counsel concludes the record supports them.

C. Supporting evidence

• ☐ Incident, crash, fire, police, agency, or workplace report

• ☐ Photographs, video, measurements, diagrams, or scene material

• ☐ Witness statements or contact information

• ☐ Admissions or relevant correspondence

• ☐ Expert material

• ☐ Other: [________________________________]

Known missing, disputed, privileged, or expected material:

[____________________________________________________________]

4. Coverage Position

Use the option matching the claim. Delete the other option.

Option A — First-party claim

The claimant requests payment under [COVERAGE PART]. The relevant policy language is [QUOTE OR SUMMARIZE WITH PAGE AND ENDORSEMENT]. The facts supporting coverage are [FACTS]. The insurer's stated position is [SUMMARY / NONE RECEIVED].

Address each disputed condition, exclusion, deductible, limit, valuation method, appraisal term, proof requirement, cooperation issue, or other policy ground:

Option B — Third-party liability claim

This demand seeks settlement of claims asserted against [INSURED NAME]. Any statement about insurance, limits, defense, indemnity, or settlement authority is based on [POLICY DISCLOSURE / CORRESPONDENCE / OTHER SOURCE] and remains subject to confirmation. The claimant does not assert a direct payment right or direct action against the insurer unless Alabama counsel separately verifies that result for this claim.

Known coverage or limits issue: [________________________________]

Request for nonprivileged clarification or disclosure: [________________________________]

5. Injury, Loss, Treatment, and Causation

Use appropriate authorization, redaction, and secure-delivery procedures for medical, financial, employment, tax, and other sensitive information. Do not represent that the record is complete if additional material is expected.

6. Damages and Valuation

Total documented or supported amount presented: $[________________________________]

Confirm which categories are recoverable and how billed, paid, written-off, collateral-source, subrogation, mitigation, damages-limit, interest, fee, cost, tax, or extra-contractual issues affect the claim. Do not include an amount merely because it appears in this table.

7. Settlement Offer

Subject to the qualifications below, [CLAIMANT NAME] offers to resolve [PRECISELY IDENTIFY CLAIMS] against [PRECISELY IDENTIFY PROPOSED RELEASED PARTIES] for $[AMOUNT].

A. Acceptance

Acceptance must be received by [METHOD] no later than [TIME, TIME ZONE, DATE].

This response period is:

• ☐ a term selected for this offer, with no separate statutory significance asserted;

• ☐ based on the following verified policy or legal provision: [________________________________]; or

• ☐ governed by another reviewed process: [________________________________].

Do not label the date a cure period, default date, bad-faith deadline, safe harbor, or automatic policy-limits trigger unless current claim-specific authority gives it that effect.

B. Consideration and release

Payment method and recipient after trust, authority, tax, and lien review: [________________________________]

Proposed release scope: [________________________________]

Dismissal or other performance: [________________________________]

Confidentiality / nondisparagement proposal: [________________________________ / NONE]

No release, indemnity, lien promise, confidentiality term, assignment restriction, representation, warranty, or other settlement term is agreed merely by sending this letter. Attach the proposed release if acceptance depends on its exact language.

C. Offer duration

• ☐ The offer is withdrawn if timely acceptance is not received.

• ☐ The offer remains open until written withdrawal.

• ☐ Other reviewed treatment: [________________________________]

A request for additional information does not extend or modify the offer unless [CLAIMANT / COUNSEL] agrees in writing.

8. Interests, Authority, and Approval Gates

Do not promise satisfaction, waiver, compromise, or indemnification of an interest until its existence, holder, amount, priority, authority, and settlement treatment have been verified.

9. Qualified Preservation Request — Optional

Because a dispute concerning [SUBJECT] is [PENDING / REASONABLY ANTICIPATED], please take the preservation steps required by controlling law for relevant information within your possession, custody, or control, including [IDENTIFY TARGETED CATEGORIES, CUSTODIANS, SYSTEMS, AND DATE RANGE].

This request does not assert that every item in a claim file is discoverable, nonprivileged, or presently producible. Production, privilege, work product, retention, proportionality, and scope remain governed by the applicable procedure and any agreement or order.

10. Alabama Department of Insurance Gate

The current Alabama Department of Insurance consumer-complaint page tells consumers to contact the company or producer first and, if the response is unsatisfactory, use the online complaint form. It also states that ALDOI cannot assist a consumer who has an attorney, cannot intervene in a pending lawsuit, and cannot determine fault, claim value, disputed facts, or credibility.

Before presenting ALDOI as an option, complete this gate:

• ☐ Claimant does not have an attorney.

• ☐ No lawsuit is pending.

• ☐ The insurer, producer, plan, and complaint are within ALDOI's stated scope.

• ☐ The complaint seeks regulatory or policy assistance rather than a fault or valuation ruling.

Current official route: ALDOI — File a Consumer Complaint

11. Closing

Please send any acceptance, response, or request for specific additional nonprivileged information to:

[NAME]

[FIRM, IF APPLICABLE]

[ADDRESS]

[EMAIL]

[PHONE]

Sincerely,

[CLAIMANT OR AUTHORIZED COUNSEL]

12. Enclosure Index

13. Final Review Checklist

• ☐ Correct claim type and all parties identified

• ☐ Complete policy, declarations, and endorsements reviewed where available

• ☐ Every legal proposition checked against current official authority

• ☐ Every factual assertion supported and disputed facts labeled

• ☐ Liability, causation, defenses, and damages reviewed under claim-specific law

• ☐ Damages math, duplicate entries, records, and future-loss support checked

• ☐ Liens, reimbursement interests, authority, and approval issues investigated

• ☐ Release and settlement terms stated precisely

• ☐ Response date is feasible and its legal effect is not overstated

• ☐ Sensitive information redacted and transmitted securely

• ☐ Delivery complies with policy, law, and any applicable pre-suit process

• ☐ Calendar preserves every independent filing, notice, policy, and appeal deadline

• ☐ Qualified Alabama counsel approved the final letter

Sources and References

• Ala. Code § 27-12-24
• Alabama Department of Insurance — File a Consumer Complaint

Amendment screen: The state-bill citation index produced a loose all-terms hit for 2026 SB 170. The Legislature's official bill record identifies SB 170 as Act 2026-298 and states that it added Article 5 to Chapter 19 and amended §§ 10A-20-6.16 and 27-21A-23; it did not amend § 27-12-24. The Legislature's current Code record retains the quoted § 27-12-24 text.