UM/UIM Demand Letter - Georgia

UM/UIM (UNINSURED/UNDERINSURED MOTORIST) DEMAND LETTER

State of Georgia

[LAW FIRM LETTERHEAD]

PRIVILEGED AND CONFIDENTIAL
SETTLEMENT COMMUNICATION — FOR RESOLUTION PURPOSES ONLY
FOR SETTLEMENT PURPOSES ONLY — ADMISSIBILITY GOVERNED BY O.C.G.A. § 24-4-408 AND FED. R. EVID. 408

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

Date: [__/__/____]

[INSURANCE_COMPANY_NAME]
[________________________________]
[________________________________]
[CITY], [STATE] [ZIP]

Attention: [________________________________], UM/UIM Claims Adjuster
Re: GEORGIA UM/UIM POLICY LIMITS DEMAND — O.C.G.A. § 33-7-11
Insured/Claimant: [________________________________]
Policy Number: [________________________________]
Claim Number: [________________________________]
Date of Loss: [__/__/____]
County of Loss: [________________________________] County, Georgia
UM/UIM Policy Limits: $[________________________________]
Tortfeasor: [________________________________]
Tortfeasor's Carrier: [________________________________]
Tortfeasor's Liability Limits: $[________________________________]
Response Deadline: [__/__/____] (at least 60 days after receipt — O.C.G.A. § 33-7-11(j))

Dear [________________________________]:

I. INTRODUCTION

This firm represents [________________________________] ("our client"), the named insured/resident relative under the above policy, in connection with a claim for uninsured/underinsured motorist benefits under O.C.G.A. § 33-7-11 arising from a motor-vehicle collision that occurred on [__/__/____] in [________________________________] County, Georgia.

This letter constitutes a formal demand under O.C.G.A. § 33-7-11(j) for the UM/UIM benefits available under the policy issued by [INSURANCE_COMPANY_NAME] ("the Carrier"). Our client's compensatory damages materially exceed the available liability insurance and the UM/UIM benefits demanded below. The Carrier has 60 days after receipt of this demand to evaluate and pay the covered loss before the statutory bad-faith remedy may be pursued.

II. GEORGIA UM/UIM STATUTORY FRAMEWORK — O.C.G.A. § 33-7-11

A. Minimum Limits and Statutory Coverage

Pursuant to O.C.G.A. § 33-7-11(a)(1), a covered Georgia automobile policy must include UM coverage unless the named insured rejects it in writing. The statute provides an option of at least $25,000 per person / $50,000 per accident for bodily injury and $25,000 for property damage, or limits equal to the policy's higher liability limits; the insured may affirmatively select lower UM limits than the liability limits.

B. Georgia Is an "Add-On" (Stacking) State — The 2008/2009 Legislative Shift

Georgia is one of only a handful of jurisdictions where UM/UIM coverage is, by default, "add-on" (stacking) coverage rather than "reduced-by" coverage. Effective January 1, 2009, O.C.G.A. § 33-7-11 was amended to require insurers to offer both "added-to" (Type I) and "reduced-by" (Type II) UM/UIM, and to default to added-to coverage unless the insured affirmatively selects reduced-by coverage in writing.

Under "added-to" (Type I) coverage:

• The insured recovers the tortfeasor's liability limits PLUS the full UM/UIM limits on top, without offset.
• Example: Tortfeasor limits of $25,000 + UIM limits of $100,000 = $125,000 available, not $75,000.

Under "reduced-by" (Type II) coverage (pre-2009 default, still available if elected):

• The UM/UIM limits are reduced dollar-for-dollar by amounts received from the tortfeasor.

Coverage Type Applicable to This Policy: ☐ Added-To (Type I) ☐ Reduced-By (Type II)

C. Multiple Applicable UM Coverages

Georgia may permit limits from more than one applicable UM policy to be considered together, subject to the policies, statutory priority rules, and offsets. See Crouch v. Federated Mutual Insurance Co., 257 Ga. App. 604 (2002). Do not multiply the UM limit merely because one policy lists multiple vehicles; identify each separate policy and confirm that the claimant qualifies as an insured under it.

D. Coverage Selection Form (Statutory Requirement)

Unless [INSURANCE_COMPANY_NAME] can produce the operative policy documents and any valid written election of reduced-by coverage, the statutory default is added-on coverage. We request production within ten (10) days of the declarations, UM endorsements, written rejection or lower-limit election, reduced-by election, and documents identifying every policy that may cover the claimant. The amount of coverage must be determined from those records and O.C.G.A. § 33-7-11; absence of a reduced-by election does not by itself establish that the UM limits equal the liability limits.

III. POLICY AND COVERAGE SUMMARY

IV. THE COLLISION AND LIABILITY UNDER GEORGIA LAW

A. Facts of the Collision

On [__/__/____] at approximately [__:__] [AM/PM], our client was lawfully [operating / a passenger in] a [YEAR] [MAKE] [MODEL] traveling [DIRECTION] on [________________________________] in [CITY], [________________________________] County, Georgia. The tortfeasor, [________________________________], [DESCRIBE_NEGLIGENT_CONDUCT], violating:

• ☐ O.C.G.A. § 40-6-20 (failure to obey traffic-control device)
• ☐ O.C.G.A. § 40-6-48 (improper lane change / failure to maintain lane)
• ☐ O.C.G.A. § 40-6-49 (following too closely)
• ☐ O.C.G.A. § 40-6-71 (failure to yield when turning left)
• ☐ O.C.G.A. § 40-6-180 (driving too fast for conditions)
• ☐ O.C.G.A. § 40-6-241 (distracted driving / hands-free violations)
• ☐ O.C.G.A. § 40-6-391 (DUI — may support a punitive claim against the driver; excluded from this UM demand)
• ☐ [________________________________]

B. Uniform Motor Vehicle Accident Report

Georgia Uniform Motor Vehicle Accident Report prepared by Officer [________________________________], Badge No. [____], [POLICE_AGENCY], Report No. [________________________________], was completed [on scene / after investigation]. The investigating officer [did / did not] cite the tortfeasor with [________________________________]. (Form SR-13 is a driver self-report, not the officer's uniform crash report.)

C. Freedom from Comparative Fault — O.C.G.A. § 51-12-33

Our client bears no comparative fault in this collision. Under Georgia's modified comparative negligence regime, O.C.G.A. § 51-12-33(g), a plaintiff is barred from recovery only if fifty percent (50%) or more at fault. Here, the undisputed evidence establishes that the tortfeasor is 100% at fault, or in any event substantially more than fifty percent (50%) at fault, and our client's recovery is not subject to apportionment or reduction.

V. UM vs. UIM TRIGGER ANALYSIS

A. UM Trigger (Uninsured Motorist)

The tortfeasor qualifies as "uninsured" under O.C.G.A. § 33-7-11(b)(1)(D) because (check all that apply):

• ☐ No liability insurance in force at time of collision
• ☐ Tortfeasor's carrier has denied coverage or is insolvent
• ☐ Hit-and-run — tortfeasor unidentified (physical contact required unless independent corroboration exists per O.C.G.A. § 33-7-11(b)(2))
• ☐ Tortfeasor's limits below statutory minimum of $25,000/$50,000

B. UIM Trigger (Underinsured Motorist)

The tortfeasor qualifies as "underinsured" under O.C.G.A. § 33-7-11(b)(1)(D)(ii) because the tortfeasor's liability limits of $[____] are less than our client's damages. Under "added-to" coverage, the UIM is triggered whenever damages exceed the tortfeasor's available limits, regardless of whether those limits exceed the UM/UIM limits on our client's policy.

VI. OUR CLIENT'S INJURIES AND TREATMENT

A. Injuries Sustained

B. Treatment Timeline

C. Permanent Impairment

Based on the [AMA Guides, 6th Edition / treating physician opinion], our client has sustained a [____]% whole-person impairment rating assigned by [________________________________], [M.D./D.O.], licensed by the Georgia Composite Medical Board, License No. [________________________________].

VII. DAMAGES CALCULATION

A. Special Damages

B. General Damages — Pain, Suffering, and Loss of Enjoyment of Life

O.C.G.A. § 51-12-4 provides that damages compensate for injury. Past and future physical pain, mental suffering, inconvenience, and loss of enjoyment should be supported by the medical evidence and facts of this claim. Georgia does not impose a generally applicable statutory cap on compensatory non-economic damages in an ordinary motor-vehicle injury action.

Non-Economic Damages Claimed: $[____]

C. Punitive Damages Excluded From This UM Demand

Punitive damages may be asserted against an identified at-fault driver when legally supported, but they are not included in the UM/UIM benefits demanded from the Carrier. Georgia decisions do not permit punitive damages to be recovered from a UM provider.

D. Total Damages

VIII. NOTICE OF LIABILITY-CARRIER SETTLEMENT

We provide notice that the tortfeasor's liability carrier, [________________________________], has offered $[____] in exchange for [DESCRIBE PROPOSED RELEASE]. O.C.G.A. § 33-7-11(g) prevents enforcement of a UM-policy exclusion based solely on settlement without the UM carrier's consent, while subsection (f) addresses the Carrier's statutory subrogation rights after payment. This notice does not concede that Carrier consent is required and does not impose an invented automatic-consent deadline. Please identify promptly any policy provision or concrete subrogation concern the Carrier contends affects the proposed settlement.

IX. POLICY-LIMITS DEMAND

A. Calculation

B. Formal Policy Limits Demand

We hereby demand payment of the full covered UM/UIM amount of $[____], plus written confirmation of the applicable coverage type, no later than the response deadline stated above, which is at least SIXTY (60) DAYS after receipt.

Because our client's covered compensatory damages of $[____] exceed the available benefits by more than $[____], we demand the full covered UM/UIM amount. McCall v. Allstate Insurance Co., 251 Ga. 869, 310 S.E.2d 513 (1984), holds that refusal of a UM settlement demand does not expose the Carrier to the tort judgment above its policy limits; the applicable bad-faith remedy is the UM-specific remedy in O.C.G.A. § 33-7-11(j).

X. TERMS OF THE UM/UIM DEMAND

O.C.G.A. § 9-11-67.1 regulates offers to settle motor-vehicle tort claims; this letter demands contractual UM/UIM benefits from the Carrier and does not invoke that statute's tort-offer safe harbor. The terms of this demand are:

1. Amount demanded: $[____] in covered UM/UIM benefits.
2. Response and payment deadline: [__/__/____], at least 60 days after the Carrier receives this letter.
3. Claim resolved upon payment: The contractual UM/UIM claim arising from the [__/__/____] collision, subject to an agreed written release that does not release any person or claim not expressly identified.
4. Payment method: Check payable to "[________________________________], as attorney for [CLIENT_NAME]," delivered to the address below.
5. Supporting material: The enclosed records are incorporated for claim-evaluation purposes.

XI. BAD FAITH NOTICE UNDER O.C.G.A. § 33-7-11(j)

This letter constitutes the statutory 60-day demand for payment under O.C.G.A. § 33-7-11(j). If [INSURANCE_COMPANY_NAME] refuses to pay a covered loss within 60 days after this demand and the fact-finder determines that the refusal was in bad faith, the statute permits recovery of:

1. The covered UM/UIM recovery;
2. A bad-faith penalty of not more than 25% of the recovery or $25,000, whichever is greater; and
3. All reasonable attorney's fees for prosecution of the case under O.C.G.A. § 33-7-11.

The bad-faith question, penalty, and attorney's fees are determined in a separate action filed after judgment on the underlying UM/UIM claim; later payment does not abate the statutory claim. McCall confirms that this UM-specific procedure and remedy controls rather than O.C.G.A. § 33-4-6 or general penalty provisions. Bad faith is not established merely because the Carrier disputes value; the demand should provide enough admissible information for a fair evaluation of coverage, liability, causation, and compensatory damages.

XII. ARBITRATION / VENUE

O.C.G.A. § 33-7-11(d) supplies the special service and participation procedure for a UM action against a known or unknown motorist. Counsel must file and serve the proper parties within the applicable limitation period and determine venue from the defendants, the insurer's Georgia contacts, and the facts of the action; this letter does not assume that the claimant's residence alone establishes venue.

XIII. RESPONSE DEADLINE

This demand expires at 5:00 p.m. Eastern Time on [__/__/____].

Consequences of Non-Response

If [INSURANCE_COMPANY_NAME] fails to accept this demand:

1. Suit will be filed in the [State / Superior] Court of [________________________________] County, Georgia.
2. Any request for the UM-specific bad-faith penalty and fees will be pursued in the separate post-judgment action authorized by O.C.G.A. § 33-7-11(j).
3. Any regulatory complaint will be submitted separately to the Georgia Office of Commissioner of Insurance and Safety Fire on the facts then available.

XIV. DOCUMENT PRESERVATION NOTICE

This letter serves as a formal litigation hold. [INSURANCE_COMPANY_NAME] is directed to preserve, without alteration or deletion, the following:

• The complete claim file (paper and electronic)
• All activity logs, diary entries, and claim notes
• All communications internal and external, including email, SMS, and recorded calls
• Reserves and all reserve-change documentation
• Claim handling manuals and training materials relevant to UM/UIM claims
• Any reports, estimates, photographs, and recorded statements

XV. CONCLUSION

Based on the enclosed evidence, liability is clear and the covered compensatory damages exceed the available benefits. We request payment of the full covered UM/UIM amount by the stated deadline.

Respectfully submitted,

[LAW_FIRM_NAME]

By: _______________________________
[ATTORNEY_NAME]
Georgia Bar No. [________________________________]
[________________________________]
[CITY], GA [____]
Telephone: [________________________________]
Email: [________________________________]

Counsel for [CLIENT_NAME]

ENCLOSURES:
☐ Policy declarations page and UM/UIM coverage selection form
☐ Georgia Uniform Motor Vehicle Accident Report or SR-13 self-report, as applicable
☐ Certified medical records and itemized bills
☐ Wage/earnings documentation (W-2s, tax returns, employer letter)
☐ Photographs of vehicles and scene
☐ Hospital-lien notices under O.C.G.A. § 44-14-470, if applicable
☐ Expert reports (accident reconstruction, life-care plan, economist)
☐ HIPAA-compliant medical authorization

CC:

• [CLIENT_NAME]
• [TORTFEASOR_CARRIER] (re: liability-limit settlement notice)

GEORGIA UM/UIM QUICK REFERENCE

SOURCES AND REFERENCES

• O.C.G.A. § 33-7-11 (Uninsured Motorist Coverage): https://law.justia.com/codes/georgia/title-33/chapter-7/section-33-7-11/
• 2024 Georgia SB 83 (official text confirming § 9-11-67.1 applies to tort offers): https://gov.georgia.gov/document/2024-signed-legislation/sb-83/download
• O.C.G.A. § 51-12-33 (Comparative Negligence): https://law.justia.com/codes/georgia/title-51/chapter-12/article-2/section-51-12-33/
• O.C.G.A. § 51-12-4 (Compensatory Damages): https://law.justia.com/codes/georgia/title-51/chapter-12/article-1/section-51-12-4/
• O.C.G.A. § 9-3-33 (Personal-Injury Limitation): https://law.justia.com/codes/georgia/title-9/chapter-3/article-2/section-9-3-33/
• McCall v. Allstate Ins. Co., 251 Ga. 869 (1984): https://www.courtlistener.com/opinion/1207272/mccall-v-allstate-insurance/
• Crouch v. Federated Mut. Ins. Co., 257 Ga. App. 604 (2002): https://law.justia.com/cases/georgia/court-of-appeals/2002/a02a1712-0.html
• State Farm Mut. Auto. Ins. Co. v. Mabry, 274 Ga. 498 (2001): https://www.courtlistener.com/opinion/1418705/state-farm-mutual-automobile-insurance-v-mabry/
• Georgia Office of Commissioner of Insurance: https://oci.georgia.gov/