UM/UIM (UNINSURED/UNDERINSURED MOTORIST) DEMAND LETTER

State of Colorado

[LAW FIRM LETTERHEAD]

PRIVILEGED AND CONFIDENTIAL
SETTLEMENT COMMUNICATION - FOR RESOLUTION PURPOSES ONLY
PROTECTED UNDER CO RULES 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 - COLORADO LAW
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 under Colorado law arising from a motor vehicle collision 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 coverage. Under Colorado law, UM/UIM coverage exists precisely for situations like this - to protect your insured when the negligent party lacks sufficient coverage.

II. COLORADO UM/UIM LAW

A. Stacking Rules in Colorado

Stacking not required but may be offered. C.R.S. 10-4-609

B. Coverage Analysis Under Colorado Law

C. Coverage Trigger

For Uninsured Motorist (UM) Claims:

The tortfeasor qualifies as an "uninsured motorist" under Colorado law 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 state minimum requirements

For Underinsured Motorist (UIM) Claims:

The tortfeasor qualifies as an "underinsured motorist" under Colorado law because:

• The tortfeasor's liability limits of [TORTFEASOR_LIMITS] are insufficient to compensate our client
• Our client has exhausted/will exhaust the tortfeasor's policy limits
• Our client's damages exceed the available coverage

III. THE COLLISION AND LIABILITY

A. Facts of the Collision

On [DATE_OF_LOSS], at approximately [TIME], our client was [DESCRIBE_CLIENT_ACTIVITY] at or near [LOCATION_OF_COLLISION] in Colorado.

[DETAILED_DESCRIPTION_OF_COLLISION]

B. Tortfeasor's Negligence

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

• Failure to maintain proper lookout
• Failure to yield right-of-way
• Following too closely
• Excessive speed for conditions
• Distracted driving
• Running red light/stop sign
• Improper lane change
• Driving under the influence
• [OTHER_NEGLIGENCE]

C. Evidence of Liability

The following evidence establishes liability:

1. Police Report
[POLICE_DEPARTMENT] Traffic Crash Report (Report No. [REPORT_NUMBER])

2. Witness Statements
[NUMBER] independent witnesses observed the collision

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

4. Expert Analysis (if applicable)
[ACCIDENT_RECONSTRUCTIONIST_NAME] has concluded [SUMMARY_OF_OPINION]

D. Our Client's Freedom from Comparative Fault

Under Colorado law, our client bears no comparative fault for this collision.

IV. OUR CLIENT'S INJURIES AND TREATMENT

A. Injury Summary

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

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

B. Treatment Timeline

C. Current Condition and Prognosis

[DESCRIBE_CURRENT_CONDITION_AND_PROGNOSIS]

D. Permanent Impairment

V. DAMAGES

A. Medical Expenses

Past Medical Expenses:

Future Medical Expenses (Present Value):

B. Lost Income

Past Lost Income:

$[TOTAL_PAST_LOST_INCOME]

Future Lost Earning Capacity:

$[FUTURE_LOST_EARNING_CAPACITY] (Present Value)

C. Pain and Suffering / Non-Economic Damages

[DESCRIBE_PAIN_AND_SUFFERING]

D. Damages Summary

VI. SETTLEMENT WITH TORTFEASOR'S INSURER

A. Settlement Status

We [HAVE REACHED/ARE PURSUING] 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 Colorado law and policy terms, we hereby request consent to settle with the tortfeasor's carrier.

Please provide written consent within [NUMBER] days.

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. This is a clear policy limits case under Colorado law.

VIII. BAD FAITH WARNING

[CARRIER_SHORT_NAME] owes our client, its own insured, the duties of good faith and fair dealing recognized under Colorado law.

Colorado Bad Faith Standard:

Colorado recognizes first-party bad faith. Insured must prove: (1) insurer acted unreasonably under circumstances; and (2) insurer knew or recklessly disregarded that conduct was unreasonable. Goodson v. American Standard Ins. Co., 89 P.3d 409 (Colo. 2004). Reasonable basis for denial defeats bad faith.

Available Remedies for Bad Faith:

Covered loss, general damages, and statutory penalties under C.R.S. 10-3-1116

Any attempt to deny, delay, or lowball this claim will be met with a bad faith action.

IX. ARBITRATION CONSIDERATIONS

A. Policy Arbitration Clause

The policy [CONTAINS/DOES_NOT_CONTAIN] an arbitration clause for UM/UIM disputes under Colorado law.

[IF APPLICABLE: Quote arbitration clause and state procedural requirements]

B. Arbitration Demand (If Applicable)

If [CARRIER_SHORT_NAME] fails to accept this demand, consider this letter as notice of our intent to invoke arbitration under Colorado law.

X. RESPONSE DEADLINE

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

Consequences of Non-Response

If [CARRIER_SHORT_NAME] fails to accept this demand:

1. We will invoke arbitration (if required) or file suit in Colorado
2. We will pursue bad faith damages under Colorado law
3. We will file a complaint with Colorado Division of Insurance, 1560 Broadway, Suite 850, Denver, CO 80202

XI. CONCLUSION

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

Respectfully submitted,

[LAW_FIRM_NAME]

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

Counsel for [CLIENT_NAME]

ENCLOSURES:
- Policy declarations page
- UM/UIM coverage provisions
- Police report
- Medical records and bills
- Photographs
- Expert reports (if applicable)

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

COLORADO UM/UIM LAW QUICK REFERENCE