UM/UIM Demand Letter - District of Columbia

UM/UIM (UNINSURED/UNDERINSURED MOTORIST) DEMAND LETTER

District of Columbia

[LAW FIRM LETTERHEAD]

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

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

Date: [__/__/____]

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

Attention: [________________________________], [________________________________]
Re: FORMAL UM/UIM POLICY LIMITS DEMAND — DISTRICT OF COLUMBIA LAW
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. Eastern Time

Dear [________________________________]:

I. INTRODUCTION AND NATURE OF DEMAND

This firm represents [________________________________] ("our client") in connection with a claim for [UNINSURED / UNDERINSURED] motorist benefits arising under the Compulsory/No-Fault Motor Vehicle Insurance Act of the District of Columbia, D.C. Code §§ 31-2401 et seq., following a motor vehicle collision on [__/__/____] in the District of Columbia.

This letter constitutes a formal demand for payment of the full UM/UIM policy limits of $[________________________________] under Policy No. [________________________________].

Our client's total damages, documented below, substantially exceed all available coverage. D.C. Code § 31-2406 mandates that every motor vehicle insurer doing business in the District offer UM/UIM coverage precisely for this circumstance — to protect your insured when the at-fault party's coverage is nonexistent or inadequate.

Statutory Minimums Under D.C. Law:
Under D.C. Code § 31-2406(f), the minimum required UM coverage is $25,000 per person / $50,000 per accident for bodily injury and death (§ 31-2406(f)(2)), and $5,000 per accident for property damage subject to a $200 deductible (§ 31-2406(f)(2)–(3)). The policy at issue provides limits of $[________________________________], which [meets / exceeds] the statutory minimum.

II. DISTRICT OF COLUMBIA UM/UIM LEGAL FRAMEWORK

A. DC No-Fault System and UM/UIM Interaction

The District of Columbia operates a modified no-fault system under the Compulsory/No-Fault Motor Vehicle Insurance Act, D.C. Code §§ 31-2401 et seq. Our client [elected / did not elect] Personal Injury Protection (PIP) benefits under D.C. Code § 31-2404.

PIP Benefit Limits Under D.C. Code § 31-2404:

PIP benefits are paid without regard to fault under D.C. Code § 31-2404(b).

B. Tort Threshold — D.C. Code § 31-2405

A victim who has elected PIP benefits may pursue a tort action only upon meeting one or more of the following thresholds under D.C. Code § 31-2405(b):

☐ Substantial permanent scarring or disfigurement directly resulting from the injury
☐ Substantial and medically demonstrable permanent impairment that has significantly diminished the victim's capacity for professional work or customary daily activities
☐ Medically demonstrable impairment preventing the victim from performing all or substantially all material acts of usual daily activities for more than 180 consecutive days
☐ Medical and rehabilitation expenses or work loss exceeding available PIP coverage limits
☐ Death

Our client satisfies the tort threshold because: [________________________________]

C. UM/UIM Coverage Under D.C. Code § 31-2406

Under D.C. Code § 31-2406(c-1), underinsured motorist (UIM) coverage is optional but must be offered to every insured in amounts up to the UM limits. Our client holds UIM coverage of $[________________________________] per person / $[________________________________] per accident.

Anti-Stacking Note: Pursuant to D.C. Code § 31-2406, policies in the District may include terms and conditions that preclude stacking of UM and UIM coverages across multiple policies or vehicles. The policy at issue [does / does not] contain an anti-stacking provision. [If stacking is permitted: Our client is entitled to stack coverage across [____] vehicles for a total available limit of $[________________________________].]

D. DC Contributory Negligence Rule

Critical DC-Specific Rule: The District of Columbia is one of only five U.S. jurisdictions (Alabama, Maryland, North Carolina, Virginia, and the District) that applies pure contributory negligence. Under DC common law and, for pedestrians and vulnerable users, the modified comparative standard of D.C. Code § 50-2204.52, if a plaintiff bears any degree of fault for the collision — even 1% — that plaintiff is completely barred from tort recovery (except as § 50-2204.52 limits the defense for pedestrians/cyclists). This harsh rule makes UM/UIM benefits even more critical for DC policyholders.

Our client bears no contributory fault for this collision for the following reasons: [________________________________]

III. POLICY AND COVERAGE INFORMATION

IV. THE COLLISION AND LIABILITY

A. Facts of the Collision

On [__/__/____], at approximately [____] [a.m./p.m.], our client was [________________________________] at or near [________________________________], Washington, D.C.

[DETAILED DESCRIPTION OF COLLISION]

The Metropolitan Police Department responded to the scene. MPD Traffic Crash Report No. [________________________________] documents the collision.

B. Tortfeasor's Negligence

The tortfeasor, [________________________________], was negligent in the following particulars:

☐ Failure to maintain proper lookout
☐ Failure to yield right-of-way
☐ Following too closely in violation of D.C. Code § 50-2201.04
☐ Excessive speed in violation of D.C. Code § 50-2201.03
☐ Distracted driving (cell phone/texting)
☐ Running a red light or stop sign
☐ Improper lane change
☐ Driving under the influence of alcohol or drugs
☐ Failure to exercise due care under D.C. Code § 50-2201.04
☐ [________________________________]

C. Evidence of Liability

1. Metropolitan Police Department Report
MPD Traffic Crash Report No. [________________________________], reflecting a finding of fault against [________________________________].

2. Witness Statements
[____] independent witness(es) observed the collision and provided statements corroborating our client's account.

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

4. Video/Surveillance Footage
[________________________________]

5. Expert Analysis (if applicable)
[________________________________] has prepared an accident reconstruction report concluding: [________________________________].

D. Tortfeasor's Insurance Status

For Uninsured Motorist (UM) Claims:

The tortfeasor qualifies as an "uninsured motor vehicle" under D.C. Code § 31-2406(f)(1) because:

☐ The tortfeasor carried no liability insurance at the time of the collision
☐ The tortfeasor's insurer has denied coverage
☐ The tortfeasor's insurer has become insolvent
☐ The tortfeasor fled the scene and cannot be identified (hit-and-run)
☐ The tortfeasor's liability limits fall below the DC statutory minimum required by D.C. Code § 31-2406

Supporting documentation: [________________________________]

For Underinsured Motorist (UIM) Claims:

The tortfeasor qualifies as an "underinsured motor vehicle" because:

☐ The tortfeasor's liability limits of $[________________________________] are insufficient to compensate our client fully
☐ Our client has exhausted (or will exhaust upon settlement) the tortfeasor's policy limits of $[________________________________]
☐ Our client's total damages of $[________________________________] exceed all available liability coverage

V. OUR CLIENT'S INJURIES AND MEDICAL TREATMENT

A. Injury Summary

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

Primary Injuries:

• [________________________________]
• [________________________________]
• [________________________________]

Secondary/Associated Conditions:

• [________________________________]
• [________________________________]

B. Treatment Timeline

C. Current Condition and Prognosis

[DESCRIBE CURRENT CONDITION, ONGOING SYMPTOMS, ANTICIPATED FUTURE TREATMENT, AND PROGNOSIS]

D. Permanent Impairment

Rating prepared by: [________________________________], [________________________________]
Date of rating: [__/__/____]

VI. DAMAGES

A. Medical Expenses

Past Medical Expenses:

Future Medical Expenses (Present Value):

Life care plan prepared by: [________________________________]

B. Lost Income

Past Lost Income: $[________________________________]

Documentation: [________________________________] (employer verification / tax records)

Future Lost Earning Capacity (Present Value): $[________________________________]

Vocational/economic analysis prepared by: [________________________________]

C. Pain and Suffering / Non-Economic Damages

[DESCRIBE PAIN, SUFFERING, LOSS OF ENJOYMENT OF LIFE, EMOTIONAL DISTRESS, IMPACT ON DAILY ACTIVITIES, AND RELATIONSHIP HARM]

Non-Economic Damages: $[________________________________]

D. PIP Benefits Received (Offset Calculation)

Note: PIP benefits paid under DC law may be subject to a right of reimbursement under the policy terms and D.C. Code § 31-2406.

E. Total Damages Summary

VII. SETTLEMENT WITH TORTFEASOR'S INSURER AND CONSENT PROCEDURE

A. Settlement Status

We [HAVE REACHED / ARE PURSUING] a settlement with the tortfeasor's liability carrier, [________________________________], for the tortfeasor's full policy limits of $[________________________________].

B. Statutory Notice Requirement — D.C. Code § 31-2407.01

Under D.C. Code § 31-2407.01 (the Underinsured Motorist Insurer Fairness Amendment Act, effective July 15, 2014), when a tortfeasor's insurer offers to pay its policy limits conditioned on a subrogation waiver, written notice via certified mail must be provided to the UIM carrier. The UIM carrier then has 60 days from receipt of notice to:

1. Preserve subrogation rights by providing written notice and paying to our client an amount equal to the tortfeasor's policy limits; or
2. Consent to settlement by allowing our client to accept the offer and execute releases.

NOTICE IS HEREBY GIVEN pursuant to D.C. Code § 31-2407.01 that [________________________________] has offered its full policy limits of $[________________________________] conditioned on a waiver of subrogation. [CARRIER SHORT NAME] must respond within 60 days of receipt of this notice.

Failure to act within 60 days constitutes an automatic waiver of [CARRIER SHORT NAME]'s subrogation rights against the tortfeasor. D.C. Code § 31-2407.01(c)(3).

Please confirm receipt of this notice by [__/__/____].

VIII. CALCULATION OF UIM BENEFITS DUE

IX. DEMAND FOR UM/UIM POLICY LIMITS

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

Our client's total damages of $[________________________________] substantially exceed all available coverage. Under DC law, this is a clear policy limits case. [CARRIER SHORT NAME] has an obligation under D.C. Code § 31-2406 and the implied covenant of good faith (recognized in Choharis v. State Farm Fire & Cas. Co., 961 A.2d 1080 (D.C. 2008)) to promptly and fairly evaluate and pay this claim.

X. BAD FAITH WARNING AND STATUTORY OBLIGATIONS

A. DC Good Faith Standard

Under District of Columbia law, every insurance contract contains an implied covenant of good faith and fair dealing. Choharis v. State Farm Fire & Cas. Co., 961 A.2d 1080, 1087 (D.C. 2008); Allworth v. Howard Univ., 890 A.2d 194, 201 (D.C. 2006). A breach of this implied covenant gives rise to a breach of contract action.

Important DC Distinction: The District of Columbia does not recognize an independent tort of bad faith breach of an insurance contract. Choharis, 961 A.2d at 1087; Fireman's Fund Ins. Co. v. CTIA, 480 F. Supp. 2d 7 (D.D.C. 2007). However, breach of contract damages — including consequential damages flowing from the breach — are available when an insurer fails to honor its contractual obligations.

B. DC Consumer Protection Procedures Act — D.C. Code § 28-3905

The D.C. Consumer Protection Procedures Act may supply a separate claim only if the policyholder, insurer, transaction, goods or services, and alleged trade practice satisfy § 28-3901; the conduct satisfies an exact § 28-3904 provision; and the plaintiff establishes a § 28-3905(k) capacity and remedy. An insurance-transaction label alone does not establish those predicates. Potential remedies, if their separate requirements are met, include:

• Treble damages (three times actual damages) or $1,500 per violation, whichever is greater
• Reasonable attorney's fees
• Punitive damages
• Injunctive relief

Unfair or deceptive conduct in claims handling — including misrepresentation of policy provisions, unreasonable delay, and failure to settle claims where liability is clear — may constitute violations of the DCCPPA.

C. Unfair Claim Settlement Practices — D.C. Code § 31-2231.17

D.C. Code § 31-2231.17 lists the following conduct when committed with such frequency as to indicate a general business practice:

☐ Knowingly misrepresenting pertinent facts or insurance policy provisions
☐ Failing to acknowledge and act reasonably promptly on claim communications
☐ Failing to adopt and implement reasonable investigation standards
☐ Refusing to pay claims without conducting reasonable investigation
☐ Failing in good faith to effectuate prompt, fair, and equitable settlements when liability has become reasonably clear
☐ Compelling litigation by offering substantially less than amounts due
☐ Failing to provide reasonable explanation for denial or compromise offer

The Commissioner of the Department of Insurance, Securities and Banking (DISB) may enforce D.C. Code § 31-2231.17 administratively. A single claim event may be evidence of a broader practice, but does not by itself establish the section's frequency threshold.

XI. ARBITRATION UNDER DC LAW

A. Arbitration Under D.C. Code § 31-2405(h)

Under D.C. Code § 31-2405(h), any person having a claim under the mandatory insurance of § 31-2406 or the optional insurance of § 31-2404 may request that the claim be resolved by the Board of Consumer Claims Arbitration for the District of Columbia (established by § 50-503); if the other party consents, the Board may hear and decide the matter, and arbitration is binding. Additionally, under D.C. Code § 31-2405(i), insurers operating in DC must arbitrate disputed automobile physical damage claims between them per the Nationwide Intercompany Arbitration Agreement.

B. Policy Arbitration Clause

The policy [DOES / DOES NOT] contain an arbitration clause for UM/UIM disputes.

[IF APPLICABLE: The arbitration clause provides: [________________________________]]

Arbitration Notice (If Applicable): If [CARRIER SHORT NAME] fails to accept this policy limits demand, this letter constitutes notice of our intent to invoke arbitration under the policy and applicable DC law.

XII. STATUTE OF LIMITATIONS

Under D.C. Code § 12-301(7), the limitations period for a simple contract, express or implied, is three (3) years. Section 12-301(8) separately supplies a three-year residual period only where no other limitation is specially prescribed. Determine the governing period, claim-specific accrual rule, and any tolling before calculating a deadline for an uninsured-motorist claim.

The applicable limitations deadline in this matter is on or about [__/__/____]. This demand is being made within the limitations period. However, if this claim is not resolved, we intend to file suit without further notice.

XIII. RESPONSE DEADLINE

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

Consequences of Non-Response

If [CARRIER SHORT NAME] fails to accept this demand by the deadline:

1. We will invoke arbitration (if required by policy) or file suit in the Superior Court of the District of Columbia or the U.S. District Court for the District of Columbia

2. We will pursue breach of contract and breach of implied covenant of good faith claims under Choharis, seeking full contract and consequential damages

3. We will evaluate claims under the DC Consumer Protection Procedures Act (D.C. Code § 28-3905) for treble damages, attorney fees, and punitive damages

4. We will file a formal complaint with the DC Department of Insurance, Securities and Banking (DISB), 1050 First Street, NE, Suite 801, Washington, DC 20002; complaints also accepted via email at [email protected] or fax at (202) 354-1085

5. We will provide evidence of this claim to the National Association of Insurance Commissioners (NAIC)

XIV. CONCLUSION

Our client sustained serious, documented injuries in a collision caused entirely by the negligence of [________________________________]. The tortfeasor's coverage is [nonexistent / woefully inadequate]. [CARRIER SHORT NAME] sells UM/UIM coverage for precisely this situation. It must now honor that commitment to its own insured under D.C. Code § 31-2406 and the obligations of good faith recognized under District of Columbia law.

We strongly urge [CARRIER SHORT NAME] to resolve this matter by paying the policy limits within the time allotted.

Respectfully submitted,

[LAW FIRM NAME]

By: ___________________________________
[ATTORNEY NAME]
DC Bar No. [____]
[________________________________]
Washington, DC [____]
Telephone: [________________________________]
Email: [________________________________]

Counsel for [CLIENT NAME]

ENCLOSURES:

• Policy declarations page and UM/UIM endorsement
• Metropolitan Police Department Crash Report No. [________________________________]
• Medical records and itemized billing (all providers)
• Life care plan / future medical cost projection
• Wage loss documentation
• Photographs of scene, vehicles, and injuries
• Expert reports (accident reconstruction, IME, vocational)
• Tortfeasor's insurance documentation
• D.C. Code § 31-2407.01 notice (UIM only — certified mail)

CC:

• [CLIENT NAME]
• [TORTFEASOR'S CARRIER] — re: D.C. Code § 31-2407.01 consent / subrogation notice

DC UM/UIM LAW QUICK REFERENCE

SOURCES AND REFERENCES

• D.C. Code § 31-2406 — Availability of UM/UIM coverage
• D.C. Code § 31-2404 — Personal injury protection
• D.C. Code § 31-2405 — Lawsuit restriction and tort threshold
• D.C. Code § 31-2407.01 — Notice to UIM carrier; subrogation; time limits
• D.C. Code § 31-2231.17 — Unfair claim settlement practices
• D.C. Code § 28-3905 — DCCPPA complaint procedures and remedies
• D.C. Code § 12-301 — Statute of limitations
• D.C. Code § 50-2204.52 — Contributory negligence limitation (pedestrians/bicyclists)
• Choharis v. State Farm Fire & Cas. Co., 961 A.2d 1080 (D.C. 2008)
• DC Code § 31-2406 on Justia (2024)
• DC Code § 31-2407.01 on Justia (2024)
• DC Department of Insurance, Securities and Banking (DISB)
• DISB Consumer Complaint Filing
• Stravitz Law Firm — DC UIM Consent-to-Settle Overview
• Nolo — DC Car Insurance Rules