UM/UIM Demand Letter - Alaska

UM/UIM (UNINSURED/UNDERINSURED MOTORIST) DEMAND LETTER

State of Alaska

[LAW FIRM LETTERHEAD]

SETTLEMENT COMMUNICATION — FOR RESOLUTION PURPOSES ONLY
ADMISSIBILITY GOVERNED BY ALASKA R. EVID. 408 AND, IF APPLICABLE, FED. R. EVID. 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 motor-vehicle coverage statute, AS 21.96.020(c), requires an insurer offering automobile bodily-injury liability insurance in Alaska to offer UM/UIM coverage initially and at renewal. The written limit may not be below Alaska's $50,000 per person / $100,000 per accident bodily-injury minimum. The policy at issue provides limits of $[________________________________] per person / $[________________________________] per accident.

Our client's damages far exceed the available third-party coverage. The claim must be evaluated under the offer/waiver rules in AS 21.96.020 and the payment, exhaustion, priority, and nonduplication rules in AS 28.20.445 and AS 28.22.201.

II. ALASKA UM/UIM LEGAL FRAMEWORK

A. UM/UIM Offer and Written Waiver — AS 21.96.020

Under AS 21.96.020(c), the insurer must initially and at each renewal offer bodily-injury UM/UIM coverage. The offer must include limits equal to the voluntarily purchased bodily-injury liability limits and, subject to statutory motorcycle and proof-of-financial-responsibility exceptions, specified higher-limit options when those exceed the liability limits. The insured may waive all or part of the offered coverage in writing under subsection (e); after a selection or waiver, the insurer need not repeat the offer in later renewal, supplemental, or replacement policies unless the insured requests broader coverage in writing.

☐ The policy at issue was sold in Alaska and is subject to AS 21.96.020.
☐ 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. Multiple Coverages and Priority — AS 28.20.445(c)

Alaska does not permit automatic aggregation merely because multiple vehicles or policies exist. When two or more vehicles are insured under one policy, the maximum payable may not exceed the highest single coverage limit. Same-insurer household policies may also limit payment to the highest single limit. When different applicable policies remain, AS 28.20.445(c) supplies an eight-level payment priority beginning with coverage on the occupied vehicle or a pedestrian's named-insured coverage. Apply the statutory order and each valid limit before calculating the available total.

☐ This claim involves [____] vehicles on one policy — the highest single coverage limit is $[________________________________].
☐ 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

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

Under McDonnell v. State Farm Mutual Automobile Insurance Co., 299 P.3d 715 (Alaska 2013), a UM policy's contractual two-year suit clause accrued on claim denial rather than the accident and was enforceable only if the insurer showed prejudice from delay. Review the actual policy, denial date, statutory periods, and preservation of the underlying tort claim separately. Earliest potential deadline: [__/__/____].

III. UM/UIM COVERAGE TRIGGER

A. For Uninsured Motorist (UM) Claims

The claim satisfies the governing UM endorsement because:

☐ The tortfeasor carried no liability insurance at the time of the collision
☐ The governing endorsement treats the tortfeasor's coverage denial as an uninsured-motorist event
☐ The tortfeasor's insurer is insolvent or in receivership
☐ Both owner and operator are unknown, direct contact between the vehicles occurred, and the accident was reported to the appropriate authorities within 24 hours (AS 28.22.201(b))

Supporting documentation: [________________________________]

B. For Underinsured Motorist (UIM) Claims

The UIM claim is triggered and payable under AS 28.20.445(a), (b), and (e) because:

☐ The tortfeasor's liability limits of $[________________________________] are insufficient to compensate our client for all damages
☐ The face limits of all applicable liability bonds and policies have been or will be used up by payments, judgments, or settlements
☐ Our client's total damages of $[________________________________] exceed amounts paid by or for legally liable persons by $[________________________________]

The maximum UM/UIM liability is the lesser of uncompensated covered damages and the applicable UM/UIM limit. Amounts payable are excess to, and may not duplicate, valid and collectible bodily-injury, death, medical-payments, or workers' compensation benefits.

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 a proper lookout or reasonable control
☐ Failure to stop or yield right-of-way (13 AAC 02.120-.130, as applicable)
☐ Following too closely
☐ Excessive or unreasonable speed for conditions
☐ Reckless or negligent driving (AS 28.35.400-.410)
☐ 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 limits noneconomic damages in ordinary personal-injury actions under AS 09.17.010. The general limit is the greater of $400,000 or $8,000 multiplied by the injured person's life expectancy in years. For severe permanent physical impairment or severe disfigurement, the limit is the greater of $1,000,000 or $25,000 multiplied by life expectancy. Calculate the applicable statutory maximum before making the demand. Subject to that limit, our client seeks compensation for:

• Physical pain and suffering
• Mental anguish and emotional distress
• Loss of enjoyment of life
• Permanent disfigurement or scarring
• Loss of consortium where legally available

[________________________________]

D. Prejudgment Interest — AS 09.30.070

If recoverable, prejudgment interest under AS 09.30.070 uses the judgment year's rate: three percentage points above the 12th Federal Reserve District discount rate in effect on January 2. It accrues from the earlier of service of process or qualifying written notice that an injury occurred and a claim may be brought—not automatically from the date of loss—and is unavailable on future economic damages, future noneconomic damages, or punitive damages. Applicable rate and accrual date: [________________________________].

E. Damages Summary

VII. TORTFEASOR SETTLEMENT, EXHAUSTION, AND SUBROGATION

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. Policy Review and Preservation of Subrogation

AS 28.20.445(e)(1) makes UM/UIM coverage secondary until applicable liability limits have been used up by payments, judgments, or settlements. Coughlin v. Government Employees Insurance Co., 69 P.3d 986 (Alaska 2003), treats the face value as the relevant exhaustion threshold and recognizes that an assumed medical lien can form part of the settlement value.

Before executing a release, quote and analyze every policy provision concerning notice, settlement, cooperation, reimbursement, and subrogation. This letter requests [CARRIER SHORT NAME]'s written position concerning the proposed settlement of $[________________________________] and any concrete step it contends is necessary to preserve its rights.

Alaska's cited statutes do not create the draft's former silence-equals-consent deadline. Do not release the tortfeasor or assume waiver from silence without policy-specific analysis and advice from Alaska counsel.

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 & Casualty Co. v. Nicholson, 777 P.2d 1152 (Alaska 1989), the Alaska Supreme Court recognized the first-party bad-faith tort. Hillman v. Nationwide Mutual Fire Insurance Co., 855 P.2d 1321 (Alaska 1993), explains that bad faith requires the absence of a reasonable basis and the insurer's knowledge or reckless disregard of that absence; a fairly debatable claim or reasonable policy interpretation is not bad faith.

B. Regulatory Standards — AS 21.36.125

AS 21.36.125 identifies prohibited unfair claim settlement practices, but subsection (b) expressly states that the section does not create or imply a private cause of action. The Division of Insurance may enforce these standards, and the same underlying conduct may be relevant to a properly supported common-law bad-faith claim. Potential regulatory violations include:

☐ 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
☐ Engaging in a pattern or practice of compelling insureds to litigate by offering substantially less than amounts ultimately recovered
☐ Compelling litigation where liability is clear through an offer lacking an objectively reasonable, documented basis in law and fact
☐ 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 another's interests. The standard subsection (f) cap is the greater of three times compensatory damages or $500,000. If subsection (g)'s financial-gain findings are made, the cap is the greatest of four times compensatory damages, four times aggregate financial gain, or $7,000,000. The court must direct 50% of any punitive award to Alaska's general fund under subsection (j).

An adverse coverage decision, delay, or valuation dispute does not by itself satisfy this standard. Punitive damages require claim-specific clear and convincing proof of the statutory aggravating conduct.

D. Attorney's Fees — Alaska Civil Rule 82

Under Alaska Civil Rule 82, the court ordinarily awards partial attorney's fees to the prevailing party under the rule's schedule, subject to the court's prevailing-party determination and permitted variations. Do not describe Rule 82 as an automatic full-fee award.

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: [________________________________]]

Any arbitration obligation is policy-specific. AS 21.96.020(f)(1) addresses allocation of arbitration or mediation expenses when those procedures occur, and Alaska's Revised Uniform Arbitration Act may govern an enforceable agreement. Hillman upheld an insurer's reasonable use of the policy's UM arbitration clause on the facts before it, but Alaska law does not impose the draft's former universal UM/UIM arbitration requirement.

B. Arbitration Demand (If Applicable)

☐ If the quoted policy clause applies, this letter provides notice of our intent to invoke it, subject to counsel's review of scope, forum, arbitrator selection, expenses, and the issues actually committed to arbitration.

XI. REGULATORY COMPLAINT NOTICE

In the event this demand is not resolved, we may submit a consumer complaint through the Alaska Division of Insurance complaint process at commerce.alaska.gov/web/ins. Current contact information should be confirmed on the Division's Contact Us page; Consumer Services currently lists (907) 269-7900 in Anchorage and (907) 465-2515 in Juneau.

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 only if an enforceable policy clause applies and counsel elects that remedy
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

Preserve these materials in accordance with the policy, ordinary claim-file duties, and applicable litigation-preservation requirements.

XIV. CONCLUSION

Alaska's UM/UIM statutes provide secondary protection when legally recoverable damages exceed amounts paid by or for responsible motorists, subject to the written coverage selection, policy language, exhaustion, nonduplication, priority, and limit rules. Our client paid premiums for that protection and requests a prompt, documented coverage decision.

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: proposed limits settlement)

ALASKA UM/UIM QUICK REFERENCE

SOURCES AND REFERENCES

• Alaska Statutes AS 21.96.020 — UM/UIM offer and waiver: https://www.akleg.gov/basis/statutes.asp#21.96.020
• Alaska Statutes AS 28.20.445 and AS 28.22.201 — UM/UIM payment, priority, exhaustion, and unknown-vehicle rules: https://www.akleg.gov/statutesPDF/Title-28.pdf
• 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 21.36.125 — Unfair Claim Settlement Practices: https://www.akleg.gov/basis/statutes.asp#21.36.125
• Alaska Statutes AS 09.17.010-.020 — Noneconomic and punitive damages: https://www.akleg.gov/statutesPDF/Title-09.pdf
• Alaska Statutes AS 09.17.060 — Comparative Fault: https://www.akleg.gov/basis/statutes.asp#09.17.060
• Alaska Statutes AS 09.10.053 and AS 09.10.070 — Contract and tort limitations: https://www.akleg.gov/statutesPDF/Title-09.pdf
• Alaska Statutes AS 09.30.070 — Prejudgment Interest: https://www.akleg.gov/basis/statutes.asp#09.30.070
• Alaska traffic statutes and regulations cited in Section IV: https://www.akleg.gov/statutesPDF/Title-28.pdf | https://www.akleg.gov/basis/aac.asp?title=13
• 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)
• McDonnell v. State Farm Mut. Auto. Ins. Co., 299 P.3d 715 (Alaska 2013) (UM contractual limitations and accrual)
• Coughlin v. Government Employees Insurance Co., 69 P.3d 986 (Alaska 2003) (exhaustion of face limits)
• Sidney v. Allstate Insurance Co., 187 P.3d 443 (Alaska 2008) (damages-minus-payments and nonduplication)
• Alaska Civil Rule 82 — Attorney's Fee Awards: https://courts.alaska.gov/rules/docs/civ.pdf
• Alaska Evidence Rule 408 — Compromise and Offers to Compromise: https://courts.alaska.gov/rules/docs/evid.pdf
• Alaska Division of Insurance — consumer rights and complaint/contact pages: https://www.commerce.alaska.gov/web/ins/

Current official Alaska title PDFs and court/agency materials were used where extractable. Section-level text was cross-checked against 2025 Justia/FindLaw mirrors because the Legislature's interactive section interface and long title PDFs were not fully extractable through sofya in this session.

This template was verified against Alaska law and official agency/court materials available on July 13, 2026. UM/UIM recovery depends on the issued policy, written selection or waiver, exhaustion, statutory priority, nonduplication, and proof of damages; Alaska counsel must review the completed demand before use.