UM/UIM Demand Letter - Alaska

UM/UIM (UNINSURED/UNDERINSURED MOTORIST) DEMAND LETTER

State of Alaska

[LAW FIRM LETTERHEAD]

PRIVILEGED AND CONFIDENTIAL
SETTLEMENT COMMUNICATION — FOR RESOLUTION PURPOSES ONLY
PROTECTED UNDER ALASKA RULES OF EVIDENCE RULE 408 AND F.R.E. 408

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

Date: [__/__/____]

[INSURANCE COMPANY NAME]
[________________________________]
[________________________________]
[City], [State] [Zip]

Attention: [________________________________], [________________________________]
Re: UM/UIM POLICY LIMITS DEMAND — ALASKA LAW (AS 28.20.445)
Insured/Claimant: [________________________________]
Policy Number: [________________________________]
Claim Number: [________________________________]
Date of Loss: [__/__/____]
UM/UIM Policy Limits: $[________________________________]
Tortfeasor: [________________________________]
Tortfeasor's Carrier: [________________________________]
Tortfeasor's Liability Limits: $[________________________________]
Response Deadline: [__/__/____] at 5:00 p.m. Alaska Time

Dear [________________________________]:

I. INTRODUCTION AND NATURE OF DEMAND

This firm represents [________________________________] ("our client") in connection with a claim for [UNINSURED / UNDERINSURED] motorist benefits under Alaska law arising from a motor vehicle collision on [__/__/____]. This letter constitutes a formal demand for payment of the full UM/UIM policy limits of $[________________________________].

Alaska's UM/UIM statute, AS 28.20.445, requires every motor vehicle liability policy issued in Alaska to offer uninsured and underinsured motorist coverage at minimum limits of $50,000 per person / $100,000 per accident — among the highest mandatory-offer minimums in the nation, reflecting the Alaska Legislature's explicit recognition that Alaska's remote geography, limited law enforcement presence, and harsh driving conditions create elevated risk for its residents. The policy at issue provides limits of $[________________________________] per person / $[________________________________] per accident.

Our client's damages far exceed the available third-party coverage. This is precisely the scenario AS 28.20.445 was enacted to address.

II. ALASKA UM/UIM LEGAL FRAMEWORK

A. Mandatory UM/UIM Offer — AS 28.20.445

Under AS 28.20.445, every motor vehicle liability policy issued or delivered in Alaska must include, or offer in writing, uninsured and underinsured motorist coverage. Coverage must be offered at limits equal to the insured's bodily injury liability limits, and must be at least $50,000 per person / $100,000 per accident. Alaska's mandatory-offer minimum exceeds the floor in most U.S. states, reflecting the Legislature's policy judgment about road hazards in this state.

☐ The policy at issue was issued in Alaska and is subject to AS 28.20.445.
☐ UM/UIM coverage in the amount of $[________________________________] per person / $[________________________________] per accident is in force.
☐ All premiums have been timely paid and the policy was in effect on [__/__/____].

B. Stacking

Alaska permits inter-policy stacking of UM/UIM coverage under certain circumstances. Where multiple vehicles are insured under the same policy, or where multiple policies exist, the available coverages may be stacked. See Norris v. State Farm Mut. Auto. Ins. Co., 229 P.3d 1122 (Alaska 2010).

☐ This claim involves [____] vehicles on the policy — stacked coverage totals $[________________________________].
☐ This is a single-vehicle policy — coverage is $[________________________________] per person.

C. Policy Coverage Summary

D. Alaska Pure Comparative Fault — AS 09.17.060

Alaska applies pure comparative fault under AS 09.17.060. Our client's recovery is not barred regardless of any percentage of fault attributed to our client. Even if our client bears some percentage of fault, UM/UIM benefits remain available for the proportionate share of damages attributable to the underinsured tortfeasor. In this case, our client bears no comparative fault for the following reasons:

[________________________________]

E. Statute of Limitations

☐ Contract claim: 3 years under AS 09.10.053 — limitations period runs from [__/__/____]
☐ Tort/bad faith claim: 2 years under AS 09.10.070

Limitations deadline: [__/__/____]. Timely resolution is essential.

III. UM/UIM COVERAGE TRIGGER

A. For Uninsured Motorist (UM) Claims

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

☐ The tortfeasor carried no liability insurance at the time of the collision
☐ The tortfeasor's insurer has denied coverage
☐ The tortfeasor's insurer is insolvent or in receivership
☐ The tortfeasor was a hit-and-run driver who cannot be identified (physical contact confirmed: ☐ Yes ☐ No)
☐ The tortfeasor's liability limits are less than Alaska's mandatory minimums under AS 28.22.101

Supporting documentation: [________________________________]

B. For Underinsured Motorist (UIM) Claims

The tortfeasor qualifies as an "underinsured motorist" because:

☐ The tortfeasor's liability limits of $[________________________________] are insufficient to compensate our client for all damages
☐ The tortfeasor's policy limits have been tendered / will be tendered to our client
☐ Our client's total damages of $[________________________________] exceed the tortfeasor's limits of $[________________________________] by $[________________________________]

IV. THE COLLISION AND LIABILITY

A. Facts of the Collision

On [__/__/____], at approximately [____] a.m./p.m. Alaska Time, our client was [________________________________] at or near [________________________________], [City/Borough], Alaska. Alaska's road conditions at this location are characterized by [________________________________] (e.g., icy road surface / limited visibility due to snowfall / remote highway with no shoulder / permafrost-related road subsidence).

[________________________________]
[________________________________]
[________________________________]

B. Tortfeasor's Negligence Under Alaska Law

The tortfeasor, [________________________________], was negligent under Alaska law in the following manner:

☐ Failure to maintain proper lookout (AS 28.35.185 — reckless driving)
☐ Failure to yield right-of-way (AS 28.20.146)
☐ Following too closely
☐ Excessive speed for conditions (AS 28.35.060)
☐ Distracted driving — cell phone/handheld device (AS 28.35.161)
☐ Driving under the influence (AS 28.35.030)
☐ Running red light / stop sign
☐ Improper lane change
☐ Failure to maintain lane on ice/snow
☐ Other: [________________________________]

C. Evidence of Liability

1. Alaska State Troopers / Local Law Enforcement Report
[________________________________] Traffic Crash Report No. [________________________________], dated [__/__/____], indicates:
- At-fault party: [________________________________]
- Citations issued: [________________________________]
- Narrative summary: [________________________________]

Note: In remote areas of Alaska, law enforcement response may be delayed or handled by the Alaska State Troopers. Preserve the trooper's incident report and any dispatch recordings.

2. Witness Statements
[____] independent witnesses observed the collision. Statements have been obtained from:
- [________________________________], contact: [________________________________]
- [________________________________], contact: [________________________________]

3. Physical Evidence
Point of impact, vehicle damage patterns, debris field analysis, and roadway markings.

4. Accident Reconstruction Expert (if applicable)
[________________________________] has concluded: [________________________________]

5. Alaska-Specific Environmental Evidence
☐ ADOT&PF road condition records for [________________________________] on [__/__/____]
☐ National Weather Service — Anchorage/Fairbanks/Juneau precipitation/visibility records
☐ Alaska DOT maintenance records for this segment

D. Comparative Fault Analysis

Our client bears no comparative fault. Under Alaska's pure comparative fault system (AS 09.17.060), any fault attributed to the tortfeasor — even if only partial — supports a UM/UIM claim for that proportionate share of damages.

V. 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:
- [________________________________]
- [________________________________]
- [________________________________]

Secondary/Consequential Conditions:
- [________________________________]

Note: Access to medical specialists in Alaska is often severely limited outside Anchorage, Fairbanks, and Juneau. Many Alaska residents must travel significant distances — or be medically evacuated — for specialized treatment, increasing the economic damages and hardship from injuries.

B. Treatment Timeline

C. Alaska-Specific Treatment Access Issues

☐ Client required medevac transport to [________________________________] for specialized care — cost: $[________________________________]
☐ Client traveled to [________________________________] (outside home community) for specialist appointments — mileage/airfare: $[________________________________]
☐ Client required lodging in [________________________________] while receiving treatment — cost: $[________________________________]
☐ Client faced wait times of [____] weeks/months for specialist referral through available Alaska providers

D. Current Condition and Prognosis

[________________________________]

E. Permanent Impairment

VI. DAMAGES

A. Medical Expenses

Past Medical Expenses:

Future Medical Expenses (Present Value):

B. Lost Income

Past Lost Income:

$[________________________________]
Documentation: [________________________________]

Future Lost Earning Capacity (Present Value):

$[________________________________]
Basis: [________________________________]

Note: In many Alaska communities, seasonal employment (fishing, construction, oil/gas, tourism) is the primary income source. Loss of a single season can represent a disproportionate share of annual earnings. This claim incorporates [________________________________] season(s) of lost seasonal income.

C. Non-Economic Damages

Alaska imposes no cap on non-economic damages in personal injury cases except in medical malpractice actions. Our client is entitled to full compensation for:

• Physical pain and suffering
• Mental anguish and emotional distress
• Loss of enjoyment of life
• Permanent disfigurement or scarring
• Loss of consortium (per AS 09.55.200 where applicable)

[________________________________]

D. Prejudgment Interest — AS 09.30.070

Our client is entitled to prejudgment interest under AS 09.30.070 at the rate of 3.5 percentage points above the Federal Reserve discount rate from the date of loss. As of [__/__/____], the applicable rate is approximately [____]% per annum. Accrued interest through the response deadline: $[________________________________].

E. Damages Summary

VII. SETTLEMENT WITH TORTFEASOR'S INSURER AND CONSENT TO SETTLE

A. Status of Third-Party Settlement

We ☐ have reached / ☐ are pursuing settlement with the tortfeasor's liability carrier, [________________________________], for the tortfeasor's policy limits of $[________________________________].

B. Consent to Settle / Waiver of Subrogation — Alaska Requirements

IMPORTANT NOTICE: Alaska courts require the UM/UIM carrier to consent before the insured settles with the tortfeasor's carrier in order to preserve UM/UIM rights. See generally Haynes v. Farmers Ins. Exch., 32 P.3d 1051 (Alaska 2001).

We hereby formally request your written consent to settle with [________________________________] for its policy limits of $[________________________________].

Failure to consent within [____] days of this letter will be treated as a waiver of any subrogation rights and will not prejudice our client's UM/UIM claim. Please confirm consent in writing to the undersigned.

VIII. FORMAL UIM BENEFITS DEMAND

A. Calculation of UIM Benefits Due

B. Policy Limits Demand

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

Our client's total damages of $[________________________________] vastly exceed the combined coverage available from all sources. This is a clear policy-limits case. [Carrier short name]'s own insured stands inadequately compensated without full payment of these benefits.

IX. BAD FAITH WARNING UNDER ALASKA LAW

[________________________________] ("the Company") owes our client — its own insured — the implied covenant of good faith and fair dealing recognized under Alaska common law. This duty is enforceable as a tort independent of the contractual obligation to pay benefits.

A. Alaska Bad Faith Standard

In State Farm Fire & Cas. Co. v. Nicholson, 777 P.2d 1152 (Alaska 1989), the Alaska Supreme Court recognized the tort of bad faith in first-party insurance claims. The Court held that an insurer breaches its duty of good faith when it refuses, without proper cause, to compensate its insured for a covered loss. See also Hillman v. Nationwide Mut. Fire Ins. Co., 855 P.2d 1321 (Alaska 1993) (affirming bad faith tort and availability of punitive damages).

B. Statutory Basis — AS 21.36.125

AS 21.36.125 codifies prohibited unfair claims practices. Alaska recognizes a private right of action under this statute. The Company violates AS 21.36.125 by:

☐ Failing to acknowledge and act promptly on communications
☐ Failing to adopt and implement reasonable claims investigation standards
☐ Not attempting in good faith to effectuate prompt, fair settlement when liability is reasonably clear
☐ Compelling our client to institute litigation by offering substantially less than the amount due
☐ Failing to promptly provide a reasonable explanation of the basis for any denial or inadequate offer

C. Punitive Damages — AS 09.17.020

Under AS 09.17.020, punitive damages are available upon clear and convincing evidence that the defendant's conduct was outrageous, including acts done with malice or in reckless indifference to the rights of another person. Punitive damages are capped at three times compensatory damages or $500,000, whichever is greater — with a higher cap if the conduct was motivated by financial gain (no cap on punitive damages in that scenario under AS 09.17.020(f)).

Any unreasonable delay, denial, or lowball offer by the Company will support a punitive damages claim.

D. Attorney's Fees — Alaska Civil Rule 82

Under Alaska Civil Rule 82, the prevailing party in litigation is entitled to a percentage of its attorney's fees as a matter of right. This creates a meaningful financial consequence for carriers who force unnecessary litigation.

E. Bad Faith Damages Available

• Full policy benefits wrongfully withheld
• Consequential damages flowing from the withholding
• Emotional distress damages
• Punitive damages (AS 09.17.020)
• Attorney's fees (Alaska Civil Rule 82)
• Costs and prejudgment interest (AS 09.30.070)

X. ARBITRATION CONSIDERATIONS

A. Policy Arbitration Clause

The policy ☐ contains / ☐ does not contain an arbitration clause for UM/UIM disputes.

[If applicable: Quote arbitration clause: [________________________________]]

Under Alaska law, UM/UIM arbitration clauses are generally enforceable but may not be used to deprive an insured of substantive rights, including bad faith damages. See Munn v. Bristol Bay Housing Auth., 777 P.2d 188 (Alaska 1989) (arbitration clause construction under Alaska law).

B. Arbitration Demand (If Applicable)

☐ If the Company fails to accept this demand, consider this letter as formal notice of our intent to invoke the arbitration provision under the policy. Please confirm selection of your arbitrator within [____] days.

XI. REGULATORY COMPLAINT NOTICE

In the event this demand is not resolved, we will file a formal complaint with the:

Alaska Division of Insurance
Department of Commerce, Community, and Economic Development
550 W. 7th Avenue, Suite 1560
Anchorage, Alaska 99501
Phone: (907) 269-7900 | Toll-Free: 1-800-INSURAK
Email: [email protected]

We will also contact the National Association of Insurance Commissioners (NAIC) and any applicable federal regulatory authorities.

XII. RESPONSE DEADLINE

THIS DEMAND EXPIRES AT 5:00 P.M. ALASKA TIME ON [__/__/____].

Failure to accept this demand by the deadline will result in:

1. Filing of suit in Alaska Superior Court seeking all UM/UIM policy benefits, bad faith damages, punitive damages under AS 09.17.020, attorney's fees under Alaska Civil Rule 82, and prejudgment interest under AS 09.30.070
2. Invocation of arbitration (if applicable under the policy)
3. Filing of regulatory complaint with the Alaska Division of Insurance
4. Withdrawal of this demand — thereafter, the Company will face the full measure of damages available under Alaska law without the benefit of a negotiated resolution

XIII. DOCUMENT PRESERVATION DEMAND

This letter serves as formal notice to preserve all documents and electronically stored information related to this claim, including:

• Complete claim file (all versions and drafts)
• All adjuster notes, diaries, and activity logs
• All internal communications concerning this claim
• Reserve information and reserve change documentation
• Claim-handling guidelines, manuals, and procedures in effect on [__/__/____]
• Training materials related to UM/UIM claims
• Supervisor approvals and quality assurance reviews
• All correspondence with the insured or counsel

Destruction of any such materials after receipt of this letter may constitute spoliation subject to adverse inference instructions under Alaska law.

XIV. CONCLUSION

Alaska's UM/UIM statute exists because the Legislature recognized that Alaska's geography, climate, and road conditions leave residents particularly vulnerable when negligent uninsured or underinsured drivers cause injury. Our client has paid premiums for precisely this protection. The Company has an opportunity to honor that promise by tendering the full policy limits.

Please direct all communications regarding this matter to:

Respectfully submitted,

[________________________________]
(Law Firm Name)

By: ___________________________________
[________________________________]
Alaska Bar No. [________________________________]
[________________________________]
[City], AK [________________________________]
Phone: [________________________________]
Email: [________________________________]

Counsel for [________________________________]

ENCLOSURES:
- ☐ Policy declarations page and UM/UIM endorsement
- ☐ Police / Alaska State Trooper report
- ☐ Medical records and bills (itemized)
- ☐ Wage loss documentation
- ☐ Medical transport / medevac records and invoices
- ☐ Photographs of collision scene and vehicles
- ☐ Expert reports (accident reconstruction / medical)
- ☐ Permanent impairment rating report
- ☐ Tortfeasor's insurance verification / policy limits confirmation

CC:
- [________________________________] (Client)
- [________________________________] (Tortfeasor's carrier, re: consent to settle)

ALASKA UM/UIM QUICK REFERENCE

SOURCES AND REFERENCES

• Alaska Statutes AS 28.20.445 — Uninsured and Underinsured Motorist Coverage: https://www.akleg.gov/basis/statutes.asp#28.20.445
• Alaska Statutes AS 28.22.011, AS 28.22.101 — Mandatory Auto Insurance: https://www.akleg.gov/basis/statutes.asp#28.22
• Alaska Statutes AS 21.36.110, AS 21.36.125 — Unfair Claims Practices: https://www.akleg.gov/basis/statutes.asp#21.36
• Alaska Statutes AS 09.17.020 — Punitive Damages: https://www.akleg.gov/basis/statutes.asp#09.17.020
• Alaska Statutes AS 09.17.060 — Comparative Fault: https://www.akleg.gov/basis/statutes.asp#09.17.060
• Alaska Statutes AS 09.30.070 — Prejudgment Interest: https://www.akleg.gov/basis/statutes.asp#09.30.070
• State Farm Fire & Cas. Co. v. Nicholson, 777 P.2d 1152 (Alaska 1989)
• Hillman v. Nationwide Mut. Fire Ins. Co., 855 P.2d 1321 (Alaska 1993)
• Norris v. State Farm Mut. Auto. Ins. Co., 229 P.3d 1122 (Alaska 2010) (stacking)
• Haynes v. Farmers Ins. Exch., 32 P.3d 1051 (Alaska 2001) (consent to settle / subrogation)
• Alaska Civil Rule 82 — Attorney's Fee Awards
• Alaska Division of Insurance, DCCED: https://commerce.alaska.gov/web/ins/
• Alaska Division of Insurance Consumer Complaints: (907) 269-7900 | [email protected]