UM/UIM (Uninsured/Underinsured Motorist) Demand Letter - Universal

UM/UIM (UNINSURED/UNDERINSURED MOTORIST) DEMAND LETTER

[LAW FIRM LETTERHEAD]

PRIVILEGED AND CONFIDENTIAL
SETTLEMENT COMMUNICATION - FOR RESOLUTION PURPOSES ONLY
PROTECTED UNDER [STATE] RULE OF EVIDENCE [___] AND F.R.E. 408

VIA CERTIFIED MAIL, RETURN RECEIPT REQUESTED
AND VIA EMAIL TO: [ADJUSTER_EMAIL]

Date: [DATE]

[INSURANCE_COMPANY_NAME]
[UM/UIM_CLAIMS_DEPARTMENT_ADDRESS]
[CITY], [STATE] [ZIP]

Attention: [ADJUSTER_NAME], [ADJUSTER_TITLE]
Re: UM/UIM POLICY LIMITS DEMAND
Insured/Claimant: [INSURED_CLAIMANT_NAME]
Policy Number: [POLICY_NUMBER]
Claim Number: [CLAIM_NUMBER]
Date of Loss: [DATE_OF_LOSS]
UM/UIM Policy Limits: [UM_UIM_LIMITS]
Tortfeasor: [TORTFEASOR_NAME]
Tortfeasor's Carrier: [TORTFEASOR_CARRIER]
Tortfeasor's Limits: [TORTFEASOR_LIMITS]
Response Deadline: [RESPONSE_DEADLINE]

Dear [ADJUSTER_NAME]:

I. INTRODUCTION AND NATURE OF DEMAND

This firm represents [CLIENT_NAME] ("our client") in connection with a claim for [UNINSURED/UNDERINSURED] motorist benefits arising from a motor vehicle collision that occurred on [DATE_OF_LOSS]. This letter constitutes a formal demand for payment of the full UM/UIM policy limits of [UM_UIM_LIMITS].

Our client's damages far exceed the available UM/UIM coverage. The tortfeasor [WAS UNINSURED / HAD INADEQUATE LIABILITY COVERAGE OF ONLY [TORTFEASOR_LIMITS]], leaving our client with no adequate remedy against the at-fault driver. This is precisely the scenario for which UM/UIM coverage exists - to protect your insured when the negligent party lacks sufficient coverage.

After [NUMBER] years of practicing personal injury and insurance law, I am confident in stating that liability in this matter is clear, our client's injuries are well-documented and severe, and the full policy limits represent fair compensation for a claim worth substantially more.

II. POLICY INFORMATION AND COVERAGE

A. UM/UIM Policy Details

B. Coverage Trigger Analysis

For Uninsured Motorist (UM) Claims:

The tortfeasor qualifies as an "uninsured motorist" under the policy because:

☐ The tortfeasor had no liability insurance at the time of the collision
☐ The tortfeasor's insurer has denied coverage
☐ The tortfeasor's insurer is insolvent
☐ The tortfeasor was a hit-and-run driver who cannot be identified
☐ The tortfeasor's insurance limits are less than the state minimum requirements

For Underinsured Motorist (UIM) Claims:

The tortfeasor qualifies as an "underinsured motorist" under the policy because:

☐ The tortfeasor's liability limits of [TORTFEASOR_LIMITS] are insufficient to compensate our client for damages sustained
☐ Our client has exhausted the tortfeasor's policy limits
☐ Our client's damages exceed the total of the tortfeasor's limits plus our client's UIM limits

C. Stacking Analysis (If Applicable)

[STATE] [PERMITS/PROHIBITS/LIMITS] the stacking of UM/UIM coverages. [IF STACKING APPLIES]:

Under [STATE] law and the terms of the policy, our client is entitled to stack UM/UIM coverage as follows:

[CITE_STATE_STACKING_LAW_OR_CASE]

D. Offset/Credit Provisions

Under the policy and [STATE] law, the following offset provisions apply:

☐ Amounts paid by tortfeasor's insurer: $[TORTFEASOR_PAYMENT]
☐ Workers' compensation benefits (if applicable): $[WC_BENEFITS]
☐ Other applicable offsets: $[OTHER_OFFSETS]

Net UIM Benefits Available: $[NET_UIM_AVAILABLE]

III. THE COLLISION AND LIABILITY

A. Facts of the Collision

On [DATE_OF_LOSS], at approximately [TIME], our client was [DESCRIBE_CLIENT_ACTIVITY_AT_TIME_OF_COLLISION] at or near [LOCATION_OF_COLLISION].

[DETAILED_DESCRIPTION_OF_HOW_COLLISION_OCCURRED]

B. Tortfeasor's Negligence

The tortfeasor, [TORTFEASOR_NAME], was negligent in the following respects:

☐ Failure to maintain proper lookout
☐ Failure to yield right-of-way
☐ Following too closely
☐ Excessive speed for conditions
☐ Distracted driving (cell phone use, texting, etc.)
☐ Running red light/stop sign
☐ Improper lane change
☐ Driving under the influence of alcohol/drugs
☐ [OTHER_NEGLIGENCE]

C. Evidence of Liability

The following evidence conclusively establishes the tortfeasor's liability:

1. Police Report
The [POLICE_DEPARTMENT] Traffic Crash Report (Report No. [REPORT_NUMBER]) documents that:
- [KEY_FINDING_1]
- [KEY_FINDING_2]
- [CITATION_ISSUED_IF_APPLICABLE]

2. Witness Statements
[NUMBER] independent witnesses observed the collision:
- [WITNESS_1_NAME]: [SUMMARY_OF_STATEMENT]
- [WITNESS_2_NAME]: [SUMMARY_OF_STATEMENT]

3. Physical Evidence
- Point of impact: [DESCRIPTION]
- Vehicle damage patterns: [DESCRIPTION]
- Skid marks/debris field: [DESCRIPTION]

4. Electronic Evidence
☐ Traffic camera footage
☐ Dashcam video
☐ Cell phone records (tortfeasor)
☐ Vehicle EDR (black box) data
☐ [OTHER_ELECTRONIC_EVIDENCE]

5. Expert Analysis
[ACCIDENT_RECONSTRUCTIONIST_NAME], a qualified accident reconstructionist, has concluded that [SUMMARY_OF_EXPERT_OPINION].

D. Our Client's Freedom from Comparative Fault

Our client was exercising due care and bears no comparative fault for this collision. [EXPLAIN_WHY_CLIENT_NOT_AT_FAULT].

IV. OUR CLIENT'S INJURIES AND TREATMENT

A. Injury Summary

As a direct and proximate result of this collision, our client sustained the following injuries:

Primary Injuries:
☐ [PRIMARY_INJURY_1]
☐ [PRIMARY_INJURY_2]
☐ [PRIMARY_INJURY_3]

Secondary/Associated Injuries:
☐ [SECONDARY_INJURY_1]
☐ [SECONDARY_INJURY_2]

B. Emergency Treatment

Our client was transported by [AMBULANCE/PRIVATE_VEHICLE] to [HOSPITAL_NAME] Emergency Department on [DATE]. Emergency evaluation revealed:

• Chief complaints: [COMPLAINTS]
• Physical examination findings: [FINDINGS]
• Diagnostic imaging results: [IMAGING_RESULTS]
• Emergency diagnosis: [DIAGNOSIS]
• Emergency treatment provided: [TREATMENT]

C. Hospitalization (If Applicable)

Our client was admitted to [HOSPITAL_NAME] from [ADMISSION_DATE] to [DISCHARGE_DATE] ([NUMBER] days). During hospitalization:

• [DESCRIBE_INPATIENT_TREATMENT]
• [SURGERIES_PERFORMED]
• [COMPLICATIONS_IF_ANY]

D. Surgical Treatment (If Applicable)

Our client underwent the following surgical procedures:

E. Post-Acute Treatment

Treating Physicians:

Physical Therapy/Rehabilitation:
- Facility: [PT_FACILITY]
- Dates: [PT_DATES]
- Number of sessions: [NUMBER_SESSIONS]
- Treatment provided: [PT_TREATMENT]

F. Current Condition and Prognosis

Our client's current condition is [DESCRIBE_CURRENT_CONDITION].

[TREATING_PHYSICIAN_NAME], [SPECIALTY], has opined that:
- [PROGNOSIS_STATEMENT_1]
- [PROGNOSIS_STATEMENT_2]
- [FUTURE_TREATMENT_NEEDS]

G. Permanent Impairment

[EVALUATING_PHYSICIAN_NAME] has assigned the following permanent impairment ratings:

V. DAMAGES

A. Medical Expenses

Past Medical Expenses:

Future Medical Expenses:

Based on [LIFE_CARE_PLANNER/TREATING_PHYSICIAN]'s analysis, our client will require the following future medical care:

B. Lost Income

Past Lost Income:

Supporting documentation: [EMPLOYER_VERIFICATION_LETTER/TAX_RETURNS/PAY_STUBS]

Future Lost Earning Capacity:

[VOCATIONAL_EXPERT/ECONOMIST_NAME] has calculated our client's future lost earning capacity as follows:

• Pre-injury earning capacity: $[PRE_INJURY_CAPACITY]/year
• Post-injury earning capacity: $[POST_INJURY_CAPACITY]/year
• Annual loss: $[ANNUAL_LOSS]
• Work-life expectancy: [YEARS] years
• Present value of future lost earning capacity: $[FUTURE_LOST_EARNING_CAPACITY]

C. Pain and Suffering / Non-Economic Damages

Our client has endured and will continue to endure significant pain and suffering, including:

Physical Pain:
- [DESCRIBE_PHYSICAL_PAIN_EXPERIENCED]
- Pain level: [PAIN_SCALE_RATING]/10 (ongoing)
- Pain management requirements: [DESCRIBE]

Mental and Emotional Suffering:
- [DESCRIBE_EMOTIONAL_IMPACT]
- [ANXIETY/DEPRESSION/PTSD_SYMPTOMS]
- [IMPACT_ON_RELATIONSHIPS]

Loss of Enjoyment of Life:
Our client can no longer [LIST_ACTIVITIES_NO_LONGER_POSSIBLE]:
- [ACTIVITY_1]
- [ACTIVITY_2]
- [ACTIVITY_3]

Disfigurement/Scarring (If Applicable):
- Location: [LOCATION]
- Size: [DIMENSIONS]
- Visibility: [DESCRIPTION]
- Psychological impact: [DESCRIPTION]

D. Loss of Consortium (If Applicable)

[SPOUSE_NAME], our client's [SPOUSE/PARTNER], has suffered loss of consortium including:
- Loss of companionship and society
- Loss of affection and intimacy
- Loss of household services
- [OTHER_CONSORTIUM_LOSSES]

E. Property Damage (If Not Previously Resolved)

F. Damages Summary

VI. SETTLEMENT WITH TORTFEASOR'S INSURER

A. Settlement Reached

We have reached a settlement with the tortfeasor's liability carrier, [TORTFEASOR_CARRIER], for the tortfeasor's policy limits of $[TORTFEASOR_LIMITS].

B. Consent to Settle / Preservation of Subrogation Rights

IMPORTANT: Pursuant to [STATE] law and the terms of the UM/UIM policy, we hereby request your consent to settle with the tortfeasor's carrier before finalizing that settlement.

Under [CITE_STATE_LAW_OR_POLICY_PROVISION], the UM/UIM carrier is entitled to:

☐ Subrogate against the tortfeasor for amounts paid
☐ Receive notice before insured settles with tortfeasor
☐ Approve or reject proposed settlement with tortfeasor
☐ Substitute its payment for tortfeasor's limits and pursue tortfeasor directly

We request that you provide written consent to the proposed settlement within [NUMBER] days. Your failure to respond will be deemed consent under [CITE_AUTHORITY].

Alternatively, if [CARRIER_SHORT_NAME] wishes to preserve subrogation rights, please advise immediately and [ADVANCE_THE_TORTFEASOR'S_LIMITS/SUBSTITUTE_PAYMENT].

VII. DEMAND FOR UM/UIM BENEFITS

A. Calculation of UIM Benefits Due

B. Policy Limits Demand

We hereby demand payment of the full UM/UIM policy limits of $[UM_UIM_LIMITS].

Our client's damages of $[TOTAL_DAMAGES] vastly exceed the combined coverage available from both the tortfeasor's carrier ($[TORTFEASOR_LIMITS]) and your UM/UIM policy ($[UM_UIM_LIMITS]). Accordingly, this is a clear policy limits case.

C. Terms of Settlement

Upon receipt of payment, we will provide:

☐ Full release of [CARRIER_SHORT_NAME] from all UM/UIM claims arising from this loss
☐ Preservation of [CARRIER_SHORT_NAME]'s subrogation rights against the tortfeasor
☐ Cooperation in any subrogation action
☐ [ADDITIONAL_TERMS]

VIII. RESPONSE DEADLINE

This demand expires at 5:00 p.m. [TIME_ZONE] on [RESPONSE_DEADLINE].

This deadline provides [CARRIER_SHORT_NAME] [NUMBER] days to evaluate this demand. We have provided complete documentation of liability, injuries, treatment, and damages. No additional information should be required.

A. Consequences of Non-Response

If [CARRIER_SHORT_NAME] fails to accept this demand by the deadline, we will:

1. Invoke arbitration (if required by policy) or file suit seeking:
   - Full UM/UIM policy limits
   - Bad faith damages (if applicable under [STATE] law)
   - Statutory penalties and interest
   - Attorney's fees and costs

2. Report the claim handling to the [STATE] Department of Insurance for investigation of potential unfair claims practices.

3. Seek discovery into [CARRIER_SHORT_NAME]'s claims handling practices, including:
   - Similar UM/UIM claims files
   - Training materials
   - Adjuster performance metrics
   - Reserve and settlement authority documentation

B. Bad Faith Warning

[CARRIER_SHORT_NAME] owes our client, its own insured, the same duties of good faith and fair dealing that apply to any first-party insurance claim. Under [STATE] law, [CITE_FIRST_PARTY_BAD_FAITH_AUTHORITY], an insurer acts in bad faith when it [STATE_BAD_FAITH_STANDARD].

The liability in this matter is clear. The damages far exceed the available coverage. Any attempt to deny, delay, or lowball this claim will be met with a bad faith action seeking compensatory damages, punitive damages, and attorney's fees.

IX. ARBITRATION CONSIDERATIONS

A. Policy Arbitration Clause

The policy [CONTAINS/DOES_NOT_CONTAIN] an arbitration clause for UM/UIM disputes. [IF APPLICABLE]:

The arbitration clause provides: "[QUOTE_ARBITRATION_CLAUSE]"

B. Arbitration Demand (Alternative)

If [CARRIER_SHORT_NAME] fails to accept this demand, consider this letter as notice of our intent to invoke arbitration. We will:

☐ Select [ARBITRATOR_NAME/TO_BE_DETERMINED] as our party-appointed arbitrator
☐ Request that the arbitrators be selected pursuant to [POLICY_PROVISION/STATE_LAW]
☐ Seek an award of the full policy limits plus [ADDITIONAL_RELIEF_IF_PERMITTED]

C. Waiver of Arbitration

Alternatively, if both parties agree, we are willing to waive arbitration and proceed directly to [LITIGATION/MEDIATION] to resolve this matter.

X. ENCLOSED DOCUMENTATION

The following documents are enclosed to support this demand:

Liability Documentation:
☐ Police Traffic Crash Report
☐ Witness statements
☐ Photographs of accident scene
☐ Photographs of vehicle damage
☐ Accident reconstruction report
☐ [OTHER_LIABILITY_DOCUMENTS]

Medical Documentation:
☐ Emergency room records
☐ Hospital records
☐ Operative reports
☐ Physician office notes
☐ Physical therapy records
☐ Diagnostic imaging reports
☐ Medical bills itemization
☐ Life care plan (if applicable)
☐ IME/DME reports (if applicable)
☐ [OTHER_MEDICAL_DOCUMENTS]

Damages Documentation:
☐ Employer verification letter
☐ Tax returns/W-2s
☐ Pay stubs
☐ Vocational expert report
☐ Economist report
☐ Property damage documentation
☐ [OTHER_DAMAGES_DOCUMENTS]

Insurance Documentation:
☐ Declarations page (client's policy)
☐ UM/UIM coverage provisions
☐ Consent to settle correspondence
☐ Tortfeasor's policy information
☐ [OTHER_INSURANCE_DOCUMENTS]

XI. CONCLUSION

This claim presents clear liability, severe and well-documented injuries, and damages far exceeding the available coverage. [CARRIER_SHORT_NAME] has an opportunity to resolve this matter fairly by paying the policy limits to its own insured.

Our client purchased UM/UIM coverage precisely for situations like this - to provide protection when a negligent driver lacks adequate coverage. [CARRIER_SHORT_NAME] should honor that coverage promptly and in good faith.

We look forward to your prompt response.

Respectfully submitted,

[LAW_FIRM_NAME]

By: _______________________________
[ATTORNEY_NAME]
[BAR_NUMBER]
[ADDRESS]
[CITY], [STATE] [ZIP]
[PHONE]
[FAX]
[EMAIL]

Counsel for [CLIENT_NAME]

ENCLOSURES: See Section X above

CC:
☐ [CLIENT_NAME]
☐ [TORTFEASOR_CARRIER] (re: consent to settle)
☐ [OTHER_PARTIES]

APPENDIX A: CHECKLIST FOR COMPLETING THIS TEMPLATE

Before sending this UM/UIM demand letter, ensure you have:

☐ Verified all policy information (UM/UIM limits, stacking status, arbitration clause)
☐ Confirmed coverage trigger (uninsured vs. underinsured status)
☐ Obtained tortfeasor's insurance information and limits
☐ Requested/obtained consent to settle with tortfeasor (if required)
☐ Documented complete liability analysis
☐ Compiled all medical records and bills
☐ Obtained physician opinions on prognosis and permanency
☐ Calculated all economic damages with supporting documentation
☐ Prepared persuasive non-economic damages narrative
☐ Set reasonable response deadline (typically 30 days)
☐ Reviewed state-specific UM/UIM law (stacking, offsets, arbitration)
☐ Obtained client approval
☐ Prepared enclosures/exhibits

APPENDIX B: STATE-SPECIFIC CONSIDERATIONS

IMPORTANT: This is a universal template. Before using, customize for your jurisdiction:

☐ Stacking Rules: Does your state permit stacking? Intra-policy? Inter-policy? What are the requirements?

☐ Offset Provisions: What credits/offsets apply to UIM benefits?

☐ Consent to Settle: What are your state's requirements for settling with the tortfeasor before exhausting UIM?

☐ Arbitration Requirements: Does state law or the policy require arbitration? What are the procedures?

☐ Bad Faith Availability: Can you pursue bad faith against your own UM/UIM carrier? What is the standard?

☐ Statute of Limitations: What is the limitations period for UM/UIM claims?

☐ Prejudgment Interest: Is prejudgment interest available on UM/UIM claims?

☐ Attorney's Fees: Are fees recoverable in UM/UIM disputes?