UM/UIM Demand Letter - Louisiana

UM/UIM (UNINSURED/UNDERINSURED MOTORIST) DEMAND LETTER

State of Louisiana

[LAW FIRM LETTERHEAD]

SETTLEMENT COMMUNICATION — FOR RESOLUTION PURPOSES ONLY
LA. CODE OF EVIDENCE ART. 408 MAY LIMIT ADMISSIBILITY FOR SPECIFIED PURPOSES; IT DOES NOT CREATE A GENERAL PRIVILEGE

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

Date: [__/__/____]

[INSURANCE_COMPANY_NAME]
[UM_UIM_CLAIMS_DEPARTMENT_ADDRESS]
[________________________________]

Attention: [ADJUSTER_NAME], [ADJUSTER_TITLE]

Re: UM/UIM POLICY LIMITS DEMAND — LOUISIANA LAW
Insured/Claimant: [INSURED_CLAIMANT_NAME]
Policy Number: [POLICY_NUMBER]
Claim Number: [CLAIM_NUMBER]
Date of Loss: [__/__/____]
Parish of Loss: [PARISH_NAME] Parish, Louisiana
UM/UIM Policy Limits: $[UM_UIM_LIMITS]
Tortfeasor (Delictual Actor): [TORTFEASOR_NAME]
Tortfeasor's Liability Carrier: [TORTFEASOR_CARRIER]
Tortfeasor's Limits: $[TORTFEASOR_LIMITS]
Response Deadline: [__/__/____]

Dear [ADJUSTER_NAME]:

I. INTRODUCTION AND NATURE OF DEMAND

This firm represents [CLIENT_NAME] ("our client"), your insured, in connection with a claim for uninsured/underinsured motorist ("UM/UIM") benefits arising from a motor vehicle collision that occurred in [PARISH_NAME] Parish, Louisiana on [__/__/____]. Based on the enclosed evidence and the policy terms identified below, this letter demands $[UM_UIM_DEMAND], not exceeding the applicable UM limits.

The claim against the tortfeasor arises under La. C.C. art. 2315, while any claim against [CARRIER_SHORT_NAME] depends on the policy and La. R.S. 22:1295. The enclosed materials support claimed damages of $[TOTAL_DAMAGES] and identify the liability proceeds and UM coverage believed to be available.

II. LOUISIANA UM/UIM LAW

A. Coverage Selection and Rejection — La. R.S. 22:1295

For a noncommercial automobile liability policy, La. R.S. 22:1295(1)(a)(i) generally requires UM/UIM bodily-injury coverage at not less than the policy's bodily-injury liability limits unless the named insured rejects the coverage, selects lower limits, or selects economic-only coverage in the statutory manner. Any selected UM limit generally may not be below the minimum limits in La. R.S. 32:900(B)(2): $15,000 for one person and $30,000 for two or more persons in one accident, unless economic-only coverage is selected.

Under current La. R.S. 22:1295(1)(a)(ii), the selection or rejection must be made on the Commissioner-prescribed form and signed by the named insured or legal representative. A properly completed and signed form creates a rebuttable presumption of a knowing selection or rejection. A signed but incomplete form does not receive that presumption, but it may still effect the selection or rejection if the insured's intent is proven. Do not assume that every form defect automatically creates UM coverage at the bodily-injury limits; obtain and analyze the actual form, policy history, and governing law.

Commercial-policy distinction: La. R.S. 22:1295(7) makes UM coverage opt-in for commercial automobile policies. If the insured made no selection on the commercial form and paid no premium including UM coverage, the statute presumes that no UM coverage was selected.

B. Coverage Trigger Under Louisiana Law

Subject to the policy and La. R.S. 22:1295, investigate whether the claim involves:

☐ Uninsured (no bodily injury liability policy in force)
☐ An insured vehicle whose liability insurer cannot pay because of insolvency (La. R.S. 22:1295(2)(a))
☐ A no-contact/unknown or uninsured vehicle, with the independent-and-disinterested-witness proof required by La. R.S. 22:1295(1)(f), if applicable
☐ An underinsured vehicle whose liability coverage is less than the insured's damages, as agreed or finally adjudicated (La. R.S. 22:1295(2)(b))

C. Louisiana's Anti-Stacking Rule

La. R.S. 22:1295(1)(c) generally bars increasing UM limits because multiple vehicles or multiple UM policies are available. A narrow occupant priority applies when the injured party occupies a vehicle not owned by the injured party, resident spouse, or resident relative: the occupied vehicle's UM coverage is primary, and after it is exhausted the claimant may access no more than one other UM policy as excess.

D. Direct Action Statute — La. R.S. 22:1269

La. R.S. 22:1269(B)(1)(e) preserves a direct action when the insurer is a UM carrier. Any action remains subject to lawful policy conditions and defenses under La. R.S. 22:1269(C); venue, jurisdiction, choice of law, and policy defenses must be evaluated from the actual facts and policy.

E. Policy Particulars

III. THE COLLISION AND DELICTUAL LIABILITY

A. Facts of the Collision

On [__/__/____], at approximately [TIME], our client was [DESCRIBE_CLIENT_ACTIVITY] at or near [LOCATION_OF_COLLISION] in [PARISH_NAME] Parish, Louisiana.

[DETAILED_DESCRIPTION_OF_COLLISION: _____________________________________]

B. Delictual Fault of the Tortfeasor Under La. C.C. art. 2315

La. C.C. art. 2315 provides that "[e]very act whatever of man that causes damage to another obliges him by whose fault it happened to repair it." The tortfeasor, [TORTFEASOR_NAME], breached the duties imposed by Louisiana law and the Louisiana Highway Regulatory Act (La. R.S. 32:1 et seq.) in the following particulars:

☐ Failure to maintain a proper lookout or exercise reasonable care under the circumstances
☐ Following too closely (La. R.S. 32:81(A))
☐ Excessive speed for conditions (La. R.S. 32:64)
☐ Prohibited use of a wireless telecommunications device (La. R.S. 32:59)
☐ Improper lane change (La. R.S. 32:79)
☐ Other: [________________________________]

C. Evidence of Liability

1. Motor Vehicle Crash Report — prepared by [INVESTIGATING_AGENCY] (Report No. [REPORT_NUMBER]), which records [DESCRIBE RELEVANT OBSERVATIONS/CITATIONS].

2. Independent Witness Statements — [NUMBER] unbiased witnesses observed the collision and corroborate our client's account.

3. Physical Evidence — point of impact, vehicle damage patterns, debris field, and roadway geometry.

4. Expert Reconstruction (if applicable) — [ACCIDENT_RECONSTRUCTIONIST_NAME] has issued a written opinion concluding [SUMMARY_OF_OPINION].

D. Comparative Fault Under La. C.C. art. 2323

For claims governed by the version of La. C.C. art. 2323 effective January 1, 2026, a claimant whose negligence is 51% or greater may not recover; below 51%, damages are reduced in proportion to the claimant's negligence. The Article retains a separate rule for injury caused partly by the claimant's negligence and partly by an intentional tortfeasor. Older claims require analysis under the law applicable when the cause of action arose. Based on the presently available evidence, our client bears [____]% fault.

IV. OUR CLIENT'S INJURIES AND TREATMENT

A. Injury Summary

As a direct and proximate result of the delict of [TORTFEASOR_NAME], our client sustained:

☐ [PRIMARY_INJURY_1]
☐ [PRIMARY_INJURY_2]
☐ [PRIMARY_INJURY_3]
☐ [PRIMARY_INJURY_4]

B. Treatment Timeline

C. Current Condition and Prognosis

[DESCRIBE_CURRENT_CONDITION_AND_PROGNOSIS: _______________________________________]

D. Permanent Impairment

E. Recoverable Past Medical Expenses — La. R.S. 9:2800.27

For claims governed by the version of La. R.S. 9:2800.27 effective January 1, 2026, past-medical recovery is generally tied to amounts actually paid and amounts paid or owed by the claimant under the statute's categories—not automatically to the provider's billed amount. The statute separately addresses contracted providers paid by health insurance or Medicare, Medicaid, workers' compensation payments, other paid or owed expenses, and attorney-negotiated provider reductions. Populate the damages tables from payment records, explanations of benefits, balances owed, liens, and guarantees, and have counsel apply the version of the statute governing the claim.

F. Worker's Compensation Interaction (if applicable)

If the injury is compensable under the Louisiana Workers' Compensation Law, identify benefits paid and evaluate the employee's, employer's, and compensation insurer's third-party rights, notice, intervention, approval, credit, and apportionment issues under La. R.S. 23:1101-1103 before settlement.

V. DAMAGES (Louisiana "General" and "Special" Damages)

This demand separately presents documented economic losses and claimed nonpecuniary harms. Each category must be supported by the facts, admissible evidence, the policy, and the law governing the claim.

A. Special Damages — Medical Expenses

Past Medical Expenses:

Future Medical Expenses (Present Value per life care plan):

B. Special Damages — Lost Income and Lost Earning Capacity

Past Lost Wages: $[PAST_LOST_INCOME]
Future Lost Earning Capacity (reduced to present value): $[FUTURE_LOST_EARNING_CAPACITY]

C. General Damages

Our client's claimed nonpecuniary harms include:

• Physical pain and suffering (past and future)
• Mental anguish and emotional distress
• Loss of enjoyment of life
• Disfigurement and scarring
• Permanent disability and loss of functional capacity
• Loss of consortium (if derivative claim by spouse/family per La. C.C. art. 2315(B))

[DETAILED_NARRATIVE_OF_GENERAL_DAMAGES: ____________________________________]

D. Damages Summary

VI. SETTLEMENT WITH TORTFEASOR'S LIABILITY CARRIER

A. Current Status

We [HAVE REACHED / ARE PURSUING] a tentative settlement with [TORTFEASOR_CARRIER] for $[TORTFEASOR_SETTLEMENT_AMOUNT]. The enclosed materials identify the proposed release and the liability proceeds available.

B. Notice and Claimed Reimbursement Rights

This notice is provided without conceding that the policy requires the UM carrier's consent to the liability settlement. La. R.S. 22:1295(4) provides that, after making a UM payment and subject to the coverage terms, the paying insurer is entitled to proceeds of a settlement or judgment against a legally responsible person to the extent of its payment. Please identify promptly any lawful policy condition, reimbursement interest, or claimed prejudice that [CARRIER_SHORT_NAME] contends is implicated by the proposed settlement. This letter does not create a statutory thirty-day advance procedure or deem silence a waiver.

VII. DEMAND FOR UM/UIM BENEFITS

A. Calculation of UIM Benefits Due

The amount sought is the uncompensated portion of the insured's covered damages after crediting applicable liability proceeds, subject to the UM limits and lawful policy terms:

B. Policy Limits Demand

We hereby demand $[UM_UIM_DEMAND], not exceeding the applicable UM limits.

The enclosed evidence supports claimed damages of $[TOTAL_DAMAGES]. After applying the liability proceeds or other lawful credit identified above, the claimed uncompensated covered damages are $[UNDERINSURED_DAMAGES], which [EXCEED / DO NOT EXCEED] the available UM limits.

VIII. BAD FAITH / PENALTY STATUTE WARNING

A. Payment Duty and Penalty Framework — La. R.S. 22:1892

La. R.S. 22:1892(A)(1) requires payment of an amount due an insured within thirty days after receipt of satisfactory proofs of loss. Under current La. R.S. 22:1892(B)(1)(a), an arbitrary, capricious, or without-probable-cause failure covered by that provision may expose the insurer to the greater of: (1) fifty percent of the amount found due (or, after a partial payment or tender, fifty percent of the difference), plus proven economic damages caused by the breach; or (2) $1,000, together with reasonable attorney fees and costs.

Current La. R.S. 22:1892(I) separately states good-faith and fair-dealing duties for claims not involving loss to an insured's immovable property and identifies specified knowing acts that constitute breach. Its remedies and prerequisites must be evaluated separately from Subsection B.

Scheduled change on August 1, 2026: Act 932 of 2026 amends La. R.S. 22:1892(I). For personal- or bodily-injury claims, amended Subsection I(3) states that Subsection I does not create a cause of action where there is a good-faith dispute as to liability, a good-faith dispute as to medical causation, or no within-limits third-party offer followed by at least thirty days to respond. Counsel should apply the version in effect when evaluating any asserted Subsection I claim; this change does not by its text rewrite Subsection B(1)(a).

B. Documentation Submitted

The enclosed records are submitted for [CARRIER_SHORT_NAME]'s evaluation of coverage, fault, uninsured/underinsured status, causation, damages, and the amount presently due. Whether the submission constitutes satisfactory proof of loss is a fact- and claim-specific question; this template does not declare that status automatically. Please identify promptly and specifically any additional information reasonably needed to evaluate the claim, and pay any amount found due within the period required by applicable law.

IX. ARBITRATION / LITIGATION FORUM

A. Arbitration Is Optional with the Insured

The policy [CONTAINS / DOES NOT CONTAIN / HAS NOT YET BEEN REVIEWED FOR] a UM arbitration provision. Under La. R.S. 22:1295(5), a UM policy may provide for arbitration, but submission is optional with the insured, does not eliminate the insured's right to sue for sums due under the policy, and may not deprive Louisiana courts of jurisdiction contrary to the statute.

B. Venue and Choice of Law

Any action must be filed in a court with subject-matter jurisdiction and proper venue after counsel evaluates the policy, parties, accident location, domicile, service, and applicable procedural law.

X. PRESCRIPTION / TIME BAR

La. R.S. 9:5629 specifically provides that actions for damages sustained in motor-vehicle accidents brought under UM policy provisions prescribe two years from the accident date. This specific UM period should not be replaced with a generic personal-action period.

For the separate delictual action against the tortfeasor, La. C.C. art. 3493.1 supplies a two-year period for delictual actions arising after July 1, 2024. Act 423 of 2024 states that the change applies prospectively to delictual actions arising after that effective date; older claims require analysis under prior law. Interruption, suspension, renunciation, policy provisions, parties, and claim type may affect the calculation.

XI. RESPONSE DEADLINE

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

Consequences of Non-Response or Refusal

If [CARRIER_SHORT_NAME] fails to tender the demanded amount by the deadline, we will:

1. File an action in a court with jurisdiction and proper venue seeking covered policy benefits and any remedies supported by the facts and governing law;
2. Pursue any supported remedies under La. R.S. 22:1892;
3. Submit a consumer complaint, if appropriate, through the Louisiana Department of Insurance's current complaint process at https://www.ldi.la.gov/onlineservices/ConsumerComplaintForm;
4. Seek other remedies and discovery permitted by the policy, facts, and governing law.

XII. DOCUMENT PRESERVATION NOTICE

Please preserve nonprivileged documents and electronically stored information relevant to this claim, including the policy and endorsements, communications, recorded statements, photographs, evaluations, payment records, and claim-handling materials subject to lawful discovery.

XIII. CONCLUSION

Based on the enclosed evidence, this claim presents [DESCRIBE LIABILITY ASSESSMENT], [DESCRIBE INJURIES], and claimed damages of $[TOTAL_DAMAGES]. We request that [CARRIER_SHORT_NAME] evaluate the submission promptly, identify any additional information reasonably required, and pay the covered amount due, up to the applicable UM limits.

Respectfully submitted,

[LAW_FIRM_NAME]

By: _______________________________
[ATTORNEY_NAME]
Louisiana Bar Roll No. [BAR_NUMBER]
[ADDRESS]
[CITY], LA [ZIP]
Phone: [PHONE]
Email: [EMAIL]

Counsel for [CLIENT_NAME]

ENCLOSURES:

• Policy declarations page and UM/UIM coverage provisions
• UM Selection/Rejection form (Commissioner-prescribed form)
• Louisiana Uniform Motor Vehicle Crash Report
• Medical records and itemized bills
• Wage loss documentation
• Photographs of vehicles and scene
• Life care plan and economist report (if applicable)
• Accident reconstruction report (if applicable)

CC:

• [CLIENT_NAME]
• [TORTFEASOR_CARRIER] (if appropriate)

LOUISIANA UM/UIM QUICK REFERENCE

SOURCES AND REFERENCES

• La. R.S. 22:1295 — Uninsured motorist coverage: https://www.legis.la.gov/legis/Law.aspx?d=508161
• La. R.S. 32:900 — Motor-vehicle liability policy and minimum limits: https://www.legis.la.gov/legis/Law.aspx?d=88632
• La. R.S. 9:5629 — UM claim prescription: https://www.legis.la.gov/legis/Law.aspx?d=108288
• La. R.S. 22:1892 — Payment, good-faith duties, and penalties: https://legis.la.gov/legis/Law.aspx?d=509041
• 2026 La. Act 932 — Scheduled amendment to La. R.S. 22:1892: https://legis.la.gov/LEGIS/ViewDocument.aspx?d=1481840
• La. Const. art. III, § 19 — Effective date of regular-session laws: https://legis.la.gov/Legis/Law.aspx?d=206415
• La. R.S. 22:1269 — Direct action: https://legis.la.gov/legis/Law.aspx?d=508142
• La. C.C. art. 2315 — Liability for acts causing damage: https://www.legis.la.gov/legis/Law.aspx?d=109369
• La. C.C. art. 2323 — Comparative fault: https://www.legis.la.gov/legis/law.aspx?d=109387
• La. C.C. art. 3493.1 — Delictual prescription: https://legis.la.gov/legis/Law.aspx?d=1386443
• 2024 La. Act 423 — Prospective application of two-year delictual prescription: https://www.legis.la.gov/legis/ViewDocument.aspx?d=1381901
• La. R.S. 9:2800.27 — Recoverable past medical expenses: https://legis.la.gov/legis/Law.aspx?d=1188021
• La. C.E. art. 408 — Compromise evidence: https://legis.la.gov/legis/Law.aspx?d=72462
• La. R.S. 32:59, 32:64, 32:79, and 32:81 — Selected traffic duties: https://legis.la.gov/Legis/law.aspx?d=1429150 · https://legis.la.gov/legis/Law.aspx?d=88494 · https://legis.la.gov/legis/Law.aspx?d=88592 · https://www.legis.la.gov/legis/Law.aspx?d=88594
• La. R.S. 23:1101-1103 — Workers' compensation third-party rights: https://www.legis.la.gov/legis/Law.aspx?d=83361 · https://www.legis.la.gov/legis/Law.aspx?d=83362 · https://www.legis.la.gov/legis/Law.aspx?d=83363
• Louisiana Department of Insurance consumer complaint form: https://www.ldi.la.gov/onlineservices/ConsumerComplaintForm