TIME-LIMITED DEMAND (BAD FAITH) - ALABAMA

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 circumstances]). 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 Alabama bad faith law, including normal bad faith (bad faith refusal to pay) recognized under Alabama common law, and potential statutory violations under Ala. Code § 27-12-24 (Unfair Claim Settlement Practices).

Please respond in writing by the deadline.

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