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
INADMISSIBLE UNDER O.C.G.A. § 24-4-408 AND FED. R. EVID. 408

VIA STATUTORY OVERNIGHT DELIVERY AND CERTIFIED MAIL, RETURN RECEIPT REQUESTED
(Delivery Method Satisfying O.C.G.A. § 9-11-67.1(a))
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: [__/__/____] (not less than 30 days — O.C.G.A. § 9-11-67.1(b))

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 policy-limits demand for the full UM/UIM coverage available under the policy issued by [INSURANCE_COMPANY_NAME] ("the Carrier"). Our client's damages materially and substantially exceed both the tortfeasor's liability limits and the Carrier's UM/UIM limits. Under controlling Georgia Supreme Court authority — Southern General Insurance Co. v. Holt, 262 Ga. 267, 416 S.E.2d 274 (1992) — and the statutory bad-faith regime of O.C.G.A. § 33-4-6, the Carrier's decision to pay or refuse these policy limits will be measured against the duty of good faith owed to its own insured.

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), no automobile liability policy may be issued or delivered in Georgia unless it contains UM/UIM coverage with limits of not less than $25,000 per person / $50,000 per accident for bodily injury, and $25,000 for property damage, unless the insured expressly rejects such coverage in writing. Where the policy's liability limits exceed the statutory minimum, the UM/UIM limits must, by default, equal the liability limits unless rejected in writing.

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. Intra-Policy and Inter-Policy Stacking

Under State Farm Mut. Auto. Ins. Co. v. Hiers, 262 Ga. 73 (1992), and Tenn. Farmers Mut. Ins. Co. v. Wheeler, 287 Ga. App. 375 (2007), an insured may stack UM/UIM coverages across multiple vehicles on the same policy and across multiple policies, subject to the anti-stacking provisions permitted by statute. Where the policy insures [NUMBER_OF_VEHICLES] vehicles with separate UM/UIM premiums, stacking is expressly authorized.

D. Coverage Selection Form (Statutory Requirement)

Unless [INSURANCE_COMPANY_NAME] can produce a written, executed coverage-selection form compliant with O.C.G.A. § 33-7-11(a)(3) reflecting a valid rejection or selection of reduced-by coverage, our client is entitled to added-to UM/UIM at the full liability limits under the policy. We demand production of any such form within ten (10) days of receipt of this letter.

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. § 40-6-70 (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 — triggers uncapped punitive damages under O.C.G.A. § 51-12-5.1(f))
• ☐ [________________________________]

B. Uniform Motor Vehicle Accident Report

Georgia Uniform Motor Vehicle Accident Report ("GA DPS Form SR-13") 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 [________________________________].

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

Under O.C.G.A. § 51-12-6, the measure of damages for non-economic losses in Georgia is the "enlightened conscience of an impartial jury." There is no statutory cap on non-economic damages in Georgia personal-injury actions. Atlanta Oculoplastic Surgery, P.C. v. Nestlehutt, 286 Ga. 731 (2010) (striking down non-economic cap in medical malpractice on state constitutional grounds; no cap applies in ordinary tort actions).

Non-Economic Damages Claimed: $[____]

C. Punitive Damages

If the tortfeasor was operating under the influence in violation of O.C.G.A. § 40-6-391, punitive damages are uncapped under O.C.G.A. § 51-12-5.1(f) (DUI exception to the $250,000 cap). In all other cases, punitive damages are capped at $250,000 under O.C.G.A. § 51-12-5.1(g), except where the defendant acted with specific intent to cause harm.

D. Total Damages

VIII. REQUEST FOR CONSENT TO SETTLE — PRESERVATION OF SUBROGATION

Under the terms of the policy and Georgia law, we hereby provide notice of a pending settlement with the tortfeasor's liability carrier, [________________________________], for the tortfeasor's full liability limits of $[____]. Consistent with State Farm Mut. Auto. Ins. Co. v. Five Transportation Co., 246 Ga. 447 (1980), and the subrogation provisions of O.C.G.A. § 33-7-11(f), we request that [INSURANCE_COMPANY_NAME] either:

1. Consent to settlement within thirty (30) days and waive subrogation; or
2. Tender its own funds equal to the tortfeasor's policy limits to preserve subrogation rights and advance the claim.

Failure to respond within thirty (30) days will be deemed consent and a waiver of any subrogation claim against the tortfeasor.

IX. POLICY-LIMITS DEMAND

A. Calculation

B. Formal Policy Limits Demand

We hereby demand payment of the full UM/UIM policy limits of $[____], plus written acknowledgment of added-to coverage, within THIRTY (30) DAYS of receipt of this letter.

Because our client's damages of $[____] exceed the stacked UM/UIM limits by more than $[____], this is an unambiguous policy-limits case. The Carrier's exposure on any recovery in excess of limits is governed by O.C.G.A. § 33-4-6 and McCall v. Allstate Ins. Co., 251 Ga. 869 (1984).

X. COMPLIANCE WITH O.C.G.A. § 9-11-67.1 (AS AMENDED BY SB 83, 2024)

To the extent this demand is construed as a pre-suit settlement offer under O.C.G.A. § 9-11-67.1, the following material terms are set forth in compliance with the amended statute effective July 1, 2024:

1. Time for acceptance: Not less than thirty (30) days from receipt of this letter, in compliance with O.C.G.A. § 9-11-67.1(b)(1).
2. Amount demanded: $[____] (UM/UIM policy limits) or, if applicable, the full available limits.
3. Parties released upon payment: [________________________________] and [INSURANCE_COMPANY_NAME] (UM/UIM claims only).
4. Claims to be released: All UM/UIM claims arising from the [__/__/____] collision.
5. Type of release: Limited release as to UM/UIM claim only; bad-faith claims under O.C.G.A. § 33-4-6 expressly preserved unless the Carrier accepts all material terms and tenders payment within forty (40) days (minimum statutory payment window under O.C.G.A. § 9-11-67.1(b)(3)).
6. Payment method: Check payable to "[________________________________], as attorney for [CLIENT_NAME]," delivered to the address below.
7. Medical records and bills authorizations: Attached and incorporated herein.

This offer constitutes an offer to enter into a bilateral contract per O.C.G.A. § 9-11-67.1(g). Acceptance requires unqualified acceptance of all material terms. The safe-harbor provisions of O.C.G.A. § 9-11-67.1(i) apply only if the Carrier timely accepts and tenders payment in full.

XI. BAD FAITH NOTICE UNDER O.C.G.A. § 33-4-6

This letter also constitutes the statutory 60-day demand for payment required by O.C.G.A. § 33-4-6 as a precondition to a first-party bad-faith action. If [INSURANCE_COMPANY_NAME] fails to pay the amount owed within sixty (60) days of receipt, and a finding of bad faith is made, the Carrier will be liable under O.C.G.A. § 33-4-6 for:

1. The loss itself (the full policy benefits);
2. A bad-faith penalty of not more than 50% of the liability for the loss or $5,000, whichever is greater;
3. All reasonable attorney's fees incurred in prosecuting the action.

The applicable standard under McCall v. Allstate, 251 Ga. 869, 871 (1984), is whether the Carrier's refusal was "frivolous and unfounded." Where liability is clear, damages vastly exceed limits, and the Carrier nevertheless refuses to pay limits to its own insured, Georgia courts have had no difficulty submitting bad faith to a jury.

Note: The Georgia Unfair Claims Settlement Practices Act, O.C.G.A. §§ 33-6-30 through 33-6-37, does not create a private right of action; enforcement is vested exclusively in the Office of Commissioner of Insurance and Safety Fire (Moradi v. Cincinnati Ins. Co., 170 Ga. App. 628 (1984)). However, violations of §§ 33-6-33 and 33-6-34 constitute evidence of bad faith under O.C.G.A. § 33-4-6.

XII. ARBITRATION / VENUE

Under O.C.G.A. § 33-7-11(j) and Williams v. Safeway Ins. Co., 223 Ga. App. 93 (1996), the insured may file a UM/UIM action and serve the Carrier as an unnamed party; the tortfeasor is named and the insurer participates as an interested party. If the policy contains a binding arbitration clause, we reserve the right to invoke it; otherwise we will proceed in the State or Superior Court of [________________________________] County, which has venue under O.C.G.A. § 33-4-1 and O.C.G.A. § 9-10-30.

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. The statutory 60-day clock under O.C.G.A. § 33-4-6 will have run, and a bad-faith claim will be joined.
3. A regulatory complaint will be filed with the Georgia Office of Commissioner of Insurance and Safety Fire, 2 Martin Luther King Jr. Drive SE, Suite 704, West Tower, Atlanta, GA 30334 (Commissioner John F. King), with copy to the Consumers' Insurance Advocate under O.C.G.A. § 33-4-6(c).
4. Within twenty (20) days of filing suit, a copy of this demand and the complaint will be mailed to the Commissioner as required by O.C.G.A. § 33-4-6(b).

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

This is a clear policy-limits UM/UIM claim under Georgia law. Liability is undisputed, damages vastly exceed available coverage, and the Carrier owes an unambiguous duty of good faith to its own insured. Payment of the full stacked added-to limits is the only reasonable response.

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
☐ GA DPS Form SR-13 (Uniform Motor Vehicle Accident Report)
☐ 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: consent to settle)

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/
• O.C.G.A. § 33-4-6 (Bad Faith): https://law.justia.com/codes/georgia/title-33/chapter-4/section-33-4-6/
• O.C.G.A. § 33-4-7 (Third-Party MV Property Damage Bad Faith): https://law.justia.com/codes/georgia/title-33/chapter-4/section-33-4-7/
• O.C.G.A. § 9-11-67.1 (Pre-Suit Demand): https://law.justia.com/codes/georgia/title-9/chapter-11/article-6/section-9-11-67-1/
• 2024 Georgia SB 83 (amending § 9-11-67.1): 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. § 51-12-5.1 (Punitive Damages): https://law.justia.com/codes/georgia/title-51/chapter-12/article-1/section-51-12-5-1/
• Southern Gen. Ins. Co. v. Holt, 262 Ga. 267 (1992): https://law.justia.com/cases/georgia/supreme-court/1992/s91g1556-1.html
• Georgia Office of Commissioner of Insurance: https://oci.georgia.gov/