TIME-LIMITED DEMAND (BAD FAITH)

To: [Carrier Claims Adjuster/Address/Email]
From: [Claimant/Insured, via Counsel]
Date: [DATE]
Claim: [CLAIM NAME/NUMBER]
Insured: [NAME]
Policy No.: [POLICY NUMBER]
Limits: [Per occurrence/aggregate limits]

1. LIABILITY AND DAMAGES SUMMARY

• Liability is reasonably clear because [facts, admissions, police report, witness statements].
• Damages summary: medicals/property loss/wage loss/other totaling [$] (see Exhibit A).
• Coverage appears to apply; no known exclusions bar coverage for this loss.

2. DEMAND TO SETTLE WITHIN LIMITS

• Demand: pay [$ AMOUNT] to settle all claims against the Insured within policy limits.
• Payment and release form to be provided upon acceptance.

3. DEADLINE

• This demand expires at [TIME, DATE] ([at least 10–30 days, adjust per jurisdiction]). Time is of the essence.

4. CONDITIONS FOR ACCEPTANCE

• Written acceptance delivered to [EMAIL/ADDRESS] by the deadline.
• Payment issued within [X] days of acceptance.
• Release: standard release of the Insured only; no indemnity/hold harmless beyond customary release.
• No additional conditions beyond those stated; any variation is a counteroffer.

5. DOCUMENTATION PROVIDED

• Exhibit A: Damages summary with supporting bills/estimates/records.
• Exhibit B: Liability evidence (photos, reports, statements).
• Exhibit C: Policy and declarations (if available).

6. NOTICE OF POTENTIAL EXTRA-CONTRACTUAL EXPOSURE

• Failure to accept this reasonable offer within limits may expose the Carrier to extra-contractual liability for any excess judgment under applicable bad-faith law.

Please respond in writing by the deadline.

Signed:
[NAME/TITLE or COUNSEL NAME]
[FIRM/CLAIMANT/INSURED]
[CONTACT INFO]