POLICY LIMITS DEMAND LETTER

Time-Limited Demand for Full Policy Limits

[LAW FIRM LETTERHEAD]

DATE: [________________________________]

VIA: Certified Mail, Return Receipt Requested
AND: Email to [________________________________]

TIME-SENSITIVE: IMMEDIATE ATTENTION REQUIRED

TO:

Insurance Company:
[INSURANCE COMPANY NAME]
[CLAIMS DEPARTMENT]
[ADDRESS]
[CITY, STATE ZIP]

Adjuster: [________________________________]
Email: [________________________________]
Claim Number: [________________________________]

AND TO INSURED (via Certified Mail):
[INSURED NAME]
[ADDRESS]
[CITY, STATE ZIP]

RE: TIME-LIMITED POLICY LIMITS DEMAND

NOTICE

THIS IS A TIME-LIMITED DEMAND FOR THE FULL BODILY INJURY LIABILITY POLICY LIMITS.

FAILURE TO ACCEPT THIS DEMAND BY [DEADLINE DATE AND TIME] WILL RESULT IN WITHDRAWAL OF THE OFFER AND EXPOSURE OF YOUR INSURED TO A PERSONAL JUDGMENT IN EXCESS OF POLICY LIMITS.

Dear [ADJUSTER NAME]:

This firm represents [CLIENT NAME] for injuries sustained on [DATE OF INCIDENT] due to the negligence of your insured, [INSURED NAME]. Based on our investigation and the clear liability and substantial damages in this case, we hereby demand the full bodily injury liability policy limits of $[POLICY LIMITS] to settle all claims against your insured.

I. POLICY LIMITS CONFIRMATION

We have been advised that your insured's policy provides:

Bodily Injury Liability: $[________] per person / $[________] per occurrence

Policy Number: [________________________________]

Policy Period: [________________________________]

If the above limits are inaccurate, you must immediately notify us in writing of the correct limits and provide a certified copy of the declarations page.

II. DEMAND

We hereby demand the full per-person bodily injury liability limit of $[AMOUNT] to fully and finally resolve all claims against your insured arising from the [DATE] incident.

III. CONDITIONS OF THIS DEMAND

This demand is subject to the following conditions, ALL of which must be satisfied:

A. Settlement Amount

☐ Payment of the full policy limits of $[________]

B. Form of Payment

☐ Single draft payable to "[CLIENT NAME] and [LAW FIRM NAME]"
☐ OR Wire transfer to our client trust account (instructions provided upon acceptance)

C. Release

☐ We will provide a standard release of your insured only (not the insurance company)
☐ Release shall not contain any confidentiality provisions
☐ Release shall not contain any admission of liability by claimant
☐ Release shall not contain any indemnification by claimant

D. Deadline

☐ Written acceptance must be received by [DATE] at [TIME] [TIMEZONE]
☐ Acceptance must be unconditional
☐ Payment must be tendered within [___] days of acceptance

E. Other Conditions

☐ [Additional conditions if applicable]
☐ [________________________________]

IV. ACCEPTANCE REQUIREMENTS

To accept this demand, you must provide written confirmation by the deadline stating:

1. You accept the policy limits demand on behalf of your insured.

2. You will tender the full policy limits of $[AMOUNT].

3. You accept all conditions stated herein.

4. You request the release form (or provide your proposed release for our review).

Oral acceptance is NOT sufficient.

Conditional acceptance is NOT acceptance.

A counteroffer is NOT acceptance and will be deemed rejection.

V. DEADLINE

THIS DEMAND EXPIRES ON [DATE] AT [TIME] [TIMEZONE].

The deadline will not be extended. We will not remind you of the approaching deadline. If you require an extension, you must request it in writing before the deadline, stating good cause, and we will consider it in our sole discretion.

VI. LIABILITY SUMMARY

A. Facts Establishing Liability

[Provide clear, concise summary of liability facts:]

On [DATE], your insured [describe negligent conduct]. At the time of the incident:

☐ [Your insured ran a red light]
☐ [Your insured was following too closely]
☐ [Your insured failed to yield]
☐ [Your insured was speeding]
☐ [Your insured was intoxicated]
☐ [Your insured was distracted]
☐ [Other: ________________________________]

B. Evidence of Liability

The following evidence establishes your insured's clear liability:

☐ Police report finding your insured at fault
☐ Citation issued to your insured for [violation]
☐ Eyewitness statements
☐ Video surveillance footage
☐ Accident reconstruction report
☐ Your insured's admission
☐ Physical evidence
☐ Other: [________________________________]

C. Comparative Fault

Our client bears no comparative fault for this incident.

[OR, if applicable: Even if your insured asserts comparative fault, such defense is without merit because [reasons].]

VII. INJURIES AND DAMAGES SUMMARY

A. Injuries

[CLIENT NAME] sustained the following injuries:

• [INJURY - e.g., Traumatic brain injury]
• [INJURY - e.g., Multiple fractures]
• [INJURY - e.g., Spinal cord injury]
• [INJURY - e.g., Internal organ damage]
• [INJURY - e.g., Permanent disability]

B. Treatment

[Summary of extensive treatment:]

• [Hospitalization: ___ days]
• [Surgeries: ___]
• [Ongoing treatment required]
• [Permanent impairment]

C. Damages Summary

DAMAGES SUBSTANTIALLY EXCEED POLICY LIMITS

VIII. EXCESS EXPOSURE

A. Exposure to Insured

The damages in this case substantially exceed your insured's policy limits of $[LIMITS]. If this demand is not accepted, and we proceed to trial, your insured faces personal exposure of:

Estimated Excess Exposure: $[AMOUNT ABOVE LIMITS]

B. Notice to Insured

We are providing a copy of this demand directly to your insured so that [he/she] is fully informed of the excess exposure and the opportunity to settle within policy limits.

Your insured has the right to:
- Contribute personal funds toward settlement
- Retain independent counsel
- Pursue a bad faith claim against you if this demand is unreasonably rejected

IX. BAD FAITH IMPLICATIONS

You are hereby placed on notice that:

1. Liability is clear. There is no reasonable basis to dispute your insured's negligence.

2. Damages exceed limits. The value of this case substantially exceeds available policy limits.

3. Settlement opportunity exists. This policy limits demand provides an opportunity to fully protect your insured.

4. Rejection is unreasonable. Given the clear liability and excess damages, rejection of this demand would be unreasonable.

5. Bad faith consequences. If you reject this demand and an excess judgment is entered, your insured may have claims against you for:
   - Bad faith failure to settle
   - Recovery of the excess judgment
   - Emotional distress
   - Punitive damages

X. MULTIPLE CLAIMANTS (if applicable)

☐ This section applies

We are aware of [NUMBER] claimants asserting claims against these policy limits.

☐ Our client's claim has priority because [reason]
☐ We are the only claimant at this time
☐ We demand the full per-person limits for our client

XI. ENCLOSURES

We enclose sufficient documentation to evaluate and accept this demand:

☐ Police/Incident Report
☐ Photographs of Injuries
☐ Medical Records Summary
☐ Medical Bills Summary
☐ Proof of Lost Wages
☐ Expert Report
☐ Other: [________________________________]

Complete records are available upon request or acceptance.

XII. NON-WAIVER

This demand shall not be construed as:
- A waiver of any claims
- A limitation on damages
- An acknowledgment of any defense
- A waiver of the right to seek excess damages if rejected

We reserve all rights.

XIII. SUMMARY

XIV. CONTACT INFORMATION

Direct all communications to:

[ATTORNEY NAME]
[LAW FIRM NAME]
[ADDRESS]
Phone: [________________________________]
Fax: [________________________________]
Email: [________________________________]

XV. CONCLUSION

We urge you to give this demand serious and immediate consideration. The liability is clear, the damages are severe, and this is an opportunity to fully protect your insured from excess exposure.

Time is of the essence. The deadline will not be extended.

Very truly yours,

[SIGNATURE]

[ATTORNEY NAME]
Attorney for [CLIENT NAME]
[STATE BAR NUMBER]

COPY TO INSURED VIA CERTIFIED MAIL:

[INSURED NAME]
[ADDRESS]
[CITY, STATE ZIP]

[Insured: You are receiving this letter because you face personal liability in excess of your insurance policy limits. Please review this demand carefully and consult with independent counsel if you wish. You have the right to contribute toward settlement.]

cc:
☐ [CLIENT NAME]
☐ File

ACCEPTANCE FORM

TO: [LAW FIRM NAME]

FROM: [INSURANCE COMPANY]

DATE: ______________

RE: Acceptance of Policy Limits Demand
Claim Number: [________________________________]

We hereby accept the policy limits demand on behalf of our insured, [INSURED NAME], subject to the following:

1. We will tender the full policy limits of $[________].

2. We accept all conditions stated in the demand letter dated [DATE].

3. Please provide the release form for execution.

4. Payment will be made within [___] days of receipt of executed release.

Authorized Representative:

Signature: _________________________________

Printed Name: _________________________________

Title: _________________________________

Date: _________________________________