UM/UIM Demand Letter - Maine

UM/UIM (UNINSURED/UNDERINSURED MOTORIST) DEMAND LETTER

State of Maine

[LAW FIRM LETTERHEAD]

SETTLEMENT COMMUNICATION — FOR RESOLUTION PURPOSES ONLY
EVIDENTIARY USE SUBJECT TO ME. R. EVID. 408 AND, WHERE APPLICABLE, FED. R. EVID. 408

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

Date: [__/__/____]

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

Attention: [________________________________], [________________________________]
Re: UM/UIM POLICY LIMITS DEMAND — MAINE LAW
Insured/Claimant: [________________________________]
Policy Number: [________________________________]
Claim Number: [________________________________]
Date of Loss: [__/__/____]
UM/UIM Policy Limits: $[________________________________]
Tortfeasor: [________________________________]
Tortfeasor's Carrier: [________________________________]
Tortfeasor's 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 under the laws of the State of Maine arising from a motor vehicle collision on [__/__/____]. This letter constitutes a formal demand for UM/UIM benefits of $[________________________________], calculated from the applicable coverage and proven loss.

Maine requires UM/UIM coverage of at least $50,000 per person and $100,000 per accident under 24-A M.R.S.A. § 2902(2) and 29-A M.R.S.A. § 1605(1). Our client's documented loss and the applicable policy terms support the amount demanded below from [CARRIER SHORT NAME] (the "Company").

II. MAINE UM/UIM LAW — GOVERNING FRAMEWORK

A. Mandatory UM/UIM Coverage Requirements

Under 24-A M.R.S.A. § 2902(1), no motor vehicle liability policy may be delivered or issued for delivery in Maine unless it includes UM/UIM coverage protecting persons insured under the policy who are legally entitled to recover damages from owners or operators of uninsured, underinsured, or hit-and-run motor vehicles for bodily injury, sickness, disease, or death.

Minimum Limits: Pursuant to 24-A M.R.S.A. § 2902(2) and 29-A M.R.S.A. § 1605(1), UM/UIM coverage must be provided in an amount not less than $50,000 per person / $100,000 per accident — the same limits as the mandatory bodily injury liability minimums.

Equal-Limits Requirement: Under 24-A M.R.S.A. § 2902(2), for policies subject to the Maine Automobile Insurance Cancellation Control Act and assigned risk plan policies, the UM coverage must equal the liability coverage selected by the purchaser unless the purchaser expressly rejects equal coverage in a signed, dated writing containing the specific statutory rejection language. An oral or informal rejection is not effective.

Multiple Policies: Identify every policy that may cover the claimant, including a resident relative's policy where applicable. Determine whether limits may be combined from the actual policy language and any applicable other-insurance or anti-stacking terms. Section 2902 requires UM coverage but does not itself guarantee that limits from multiple policies may be added.

B. Definition of Underinsured Motor Vehicle

Under 24-A M.R.S.A. § 2902(1), an "underinsured motor vehicle" means a vehicle for which coverage is provided, but in amounts less than the minimum limits for bodily injury liability insurance under 29-A M.R.S.A. § 1605(1), or less than the limits of the injured party's own uninsured vehicle coverage.

C. UIM Offset Calculation Under Maine Law

When two or more persons can recover against an underinsured driver, 24-A M.R.S.A. § 2902(6) sets the payment offset: paragraph (A) addresses policies with per-person and per-accident limits, paragraph (B) addresses a single per-accident limit, and paragraph (C) makes a further reduction for unpaid available liability coverage. For other claims, determine the applicable offset from the issued policy and governing law.

D. Coverage Policy Details

E. Coverage Trigger

☐ Uninsured Motorist (UM) Claim — The tortfeasor qualifies as an "uninsured motorist" because:

☐ The tortfeasor carried no liability insurance at the time of the collision
☐ The tortfeasor's insurer has disclaimed or denied coverage
☐ The tortfeasor's insurer is insolvent (24-A M.R.S.A. § 2902(3))
☐ The tortfeasor was a hit-and-run operator who cannot be identified

If a liability policy applies but its bodily injury limits are below Maine's financial-responsibility minimums, assess the claim as underinsured under 24-A M.R.S. § 2902(1), subject to the policy and the proven loss.

☐ Underinsured Motorist (UIM) Claim — The tortfeasor qualifies as an "underinsured motorist" because:

☐ Liability coverage applies, but its bodily injury limits are below Maine's financial-responsibility minimums (24-A M.R.S. § 2902(1))
☐ The tortfeasor's bodily injury liability limits of $[________________________________] are less than our client's UM coverage limits of $[________________________________] (24-A M.R.S. § 2902(1))
Settlement status: Our client [has exhausted / expects to exhaust / has not exhausted] the tortfeasor's available liability coverage.

Unpaid loss: Our client's documented damages exceed third-party payments by $[________________________________]. This describes uncompensated loss; underinsured status depends on the limits comparison above.

III. THE COLLISION AND LIABILITY

A. Facts of the Collision

On [__/__/____], at approximately [____] [a.m./p.m.], our client was [________________________________] at or near [________________________________], in [________________________________] County, Maine.

[DETAILED NARRATIVE OF COLLISION — include road conditions, weather, direction of travel, mechanism of impact]

B. Tortfeasor's Negligence Under Maine Law

The tortfeasor, [________________________________], was negligent under Maine law in one or more of the following respects:

☐ Failure to maintain a proper lookout — [DESCRIBE_OBSERVATION_AND_HAZARD]
☐ Failure to yield the right-of-way — 29-A M.R.S.A. § 2053 [IDENTIFY_APPLICABLE_SUBSECTION_AND_FACTS]
☐ Following too closely — 29-A M.R.S.A. § 2066
☐ Excessive speed for conditions — 29-A M.R.S.A. § 2074
☐ Distracted / texting while driving — 29-A M.R.S.A. § 2119
☐ Running a red light or stop sign — 29-A M.R.S.A. § 2057
☐ Unsafe lane change — 29-A M.R.S.A. § 2051(1-A)
☐ Operating under the influence of alcohol or drugs — 29-A M.R.S.A. § 2411
☐ Failure to maintain control of vehicle
☐ [________________________________]

C. Evidence of Liability

1. Police / Crash Report
[________________________________] (Agency), Crash Report No. [________________________________], dated [__/__/____], finding [________________________________].

2. Witness Statements
[____] independent witnesses observed the collision and corroborate our client's account.

3. Physical Evidence
Point of impact, vehicle damage profiles, tire marks, and debris field are consistent with our client's version of events.

4. Electronic / Recorded Evidence
[________________________________] (dash cam footage / surveillance video / EDR data)

5. Expert Analysis
[________________________________], accident reconstructionist, has concluded: [________________________________].

D. Comparative Fault Analysis Under Maine Law

Maine applies modified comparative negligence under 14 M.R.S.A. § 156. A claimant's recovery is barred only if the claimant is found equally at fault (50% or more). The jury reduces damages by dollars and cents — not by percentage — to the extent it deems just and equitable.

Our client bears zero comparative fault for this collision. [OR: Our client's comparative fault, if any, is minimal and well below the 50% bar. Under Maine's modified comparative fault system, our client's recovery is not defeated.]

IV. OUR CLIENT'S INJURIES AND MEDICAL TREATMENT

A. Injury Summary

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

Primary Injuries:

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

Secondary / Consequential Injuries:

• [________________________________]

B. Treatment Timeline

C. Current Condition and Prognosis

[DESCRIBE CURRENT CONDITION, FUNCTIONAL LIMITATIONS, AND PROGNOSIS]

D. Permanent Impairment

Per evaluation by [________________________________], M.D., dated [__/__/____].

V. DAMAGES

A. Past Medical Expenses

B. Future Medical Expenses (Present Value)

Per life care plan prepared by [________________________________], dated [__/__/____].

C. Lost Income and Earning Capacity

Past Lost Income: $[________________________________]
Documented by employer verification / tax records for the period [__/__/____] through [__/__/____].

Future Lost Earning Capacity (Present Value): $[________________________________]
Per vocational / economic analysis by [________________________________], dated [__/__/____].

D. Non-Economic Damages — Pain, Suffering, and Loss of Enjoyment of Life

Maine imposes no statutory cap on non-economic damages in personal injury cases. Our client has endured and will continue to endure:

• Severe and chronic pain requiring [________________________________]
• Loss of ability to engage in [________________________________] (prior activities)
• Disruption of family, social, and occupational life
• Emotional distress, anxiety, and depression attributable to the injuries
• Diminished quality of life for an estimated [____] years of remaining life expectancy

Non-Economic Damages Claimed: $[________________________________]

E. Damages Summary

VI. THIRD-PARTY SETTLEMENT AND CONSENT TO SETTLE

A. Settlement Status with Tortfeasor's Carrier

We [have reached / are pursuing] a settlement with the tortfeasor's liability carrier, [________________________________], for the tortfeasor's policy limits of $[________________________________]. [OR: The tortfeasor was uninsured / the tortfeasor's carrier has disclaimed coverage.]

B. Request for Consent to Settle / Waiver of Subrogation

IMPORTANT NOTICE TO [CARRIER SHORT NAME]: If the policy requires the Company's consent before settlement with the tortfeasor's carrier, we request that consent in writing for a settlement of $[____]. Identify the policy provision governing consent and any claimed subrogation interest.

Please provide written consent or written objection within [____] calendar days. If the Company objects, identify the policy provision and basis for the objection. We will seek an express resolution before any settlement that could affect coverage or a policy-based subrogation interest.

VII. CALCULATION OF UM/UIM BENEFITS AND DEMAND

A. UIM Benefits Calculation

Apply § 2902(6)(A) and (C) when two or more persons have claims and the UIM policy has per-person and per-accident limits; use (B) and (C) for a single per-accident limit. Record the actual payments, any unpaid available liability coverage, and the issued policy terms before filling the offset row.

B. Stacking Analysis (If Applicable)

C. Policy Limits Demand

We hereby demand UM/UIM benefits of $[________________________________], as calculated above under the applicable policy and law.

Our client's total damages of $[________________________________] exceed the coverage identified above, subject to the policy analysis. We request payment of all UM/UIM benefits owed under the applicable policy terms.

VIII. STATUTORY RIGHTS, INTEREST, AND ATTORNEY FEES

A. Overdue Payment Interest — 24-A M.R.S.A. § 2436

Under 24-A M.R.S.A. § 2436(1) and (3), an undisputed insurance claim is payable within 30 days of proof of loss and ascertainment of the loss. If the Company fails to pay an undisputed claim when due, the overdue amount bears interest at 1.5% per month from the due date.

B. Attorney Fees — 24-A M.R.S.A. § 2436(4)

Under 24-A M.R.S.A. § 2436(4), if overdue benefits are recovered in an action or paid after the Company receives notice of attorney representation, the Company must pay a reasonable attorney fee for advising and representing the claimant.

C. Unfair Claims Settlement Practices — 24-A M.R.S.A. § 2436-A

Under 24-A M.R.S.A. § 2436-A(1), our client has a private right of action against the Company if it commits any of the following acts:

☐ Knowingly misrepresenting pertinent facts or policy provisions relating to coverage at issue (§ 2436-A(1)(A))
☐ Failing to acknowledge and review the claim within a reasonable time following receipt of written notice (§ 2436-A(1)(B))
☐ Threatening to appeal an arbitration award for the sole purpose of compelling a lower settlement (§ 2436-A(1)(C))
☐ Failing to affirm or deny coverage within a reasonable time after completing its investigation (§ 2436-A(1)(D))
☐ Without just cause, failing to effectuate a prompt, fair, and equitable settlement where liability has become reasonably clear (§ 2436-A(1)(E))

A successful § 2436-A claim entitles our client to damages, costs and disbursements, reasonable attorney fees, and interest at 1.5% per month on damages.

IX. BAD FAITH WARNING — DUTY OF GOOD FAITH AND FAIR DEALING

[CARRIER SHORT NAME], as our client's own insurer, owes a duty to act in good faith and deal fairly with its insured in every aspect of this claim. This duty arises at the time the parties enter into the insurance contract and exists regardless of whether a third-party tort claimant is involved. Marquis v. Farm Family Mut. Ins. Co., 628 A.2d 644, 648 (Me. 1993); Chiapetta v. Lumbermens Mut. Ins. Co., 583 A.2d 198, 202 (Me. 1990).

Maine Bad Faith Framework:

Maine does not recognize an independent tort of bad faith separate from contract. Marquis, 628 A.2d at 652.

Additionally, our client has a private cause of action under 24-A M.R.S.A. § 2436-A for the specific unfair practices enumerated therein, entitling our client to damages, attorney fees, and 1.5% monthly interest.

Maine Unfair Trade Practices Act: Section 207 prohibits unfair or deceptive acts or practices in trade or commerce. A private action under § 213(1) requires a purchase or lease of goods, services, or property primarily for personal, family, or household purposes, a resulting loss of money or property, and a § 207 violation. Assert a UTPA claim concerning this policy only after confirming those requirements and the Act's application to the particular conduct.

If a private UTPA damages claim is retained, this letter must be mailed or delivered at least 30 days before filing and must identify the claimant and reasonably describe the relied-on practice and injuries as required by § 213(1-A). Any shorter policy-payment or settlement deadline is separate from that statutory waiting period.

Any attempt to unreasonably deny, delay, or undervalue this claim — a claim presented by the Company's own insured — will be met with the full range of available legal remedies.

X. ARBITRATION CONSIDERATIONS

A. Policy Arbitration Provision

The policy [CONTAINS / DOES NOT CONTAIN] an arbitration clause for UM/UIM disputes. [IF APPLICABLE: The policy provides: "[________________________________]." Maine courts generally enforce contractual arbitration clauses in insurance policies.]

B. Arbitration Demand (If Applicable)

If [CARRIER SHORT NAME] fails to accept this demand or fails to engage in good-faith negotiations, please treat this letter as notice of our client's intent to invoke arbitration under the policy and Maine law.

C. Litigation Venue

Should this matter proceed to litigation, our client intends to file suit in the Superior Court, [________________________________] County, Maine, and will seek all damages, statutory interest, attorney fees, and costs available under Maine law.

XI. RESPONSE DEADLINE AND CONSEQUENCES

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

Consequences of Failure to Accept This Demand

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

1. Litigation will be filed in Maine Superior Court seeking all contract damages, statutory interest at 1.5% per month, and reasonable attorney fees under 24-A M.R.S.A. §§ 2436 and 2436-A.

2. Bad faith / § 2436-A claims will be pursued to the fullest extent allowed by Maine law, including recovery of all damages proximately caused by the Company's breach of its duty of good faith and fair dealing.

3. A complaint will be filed with the Maine Bureau of Insurance (MBI), 34 State House Station, Augusta, ME 04333-0034, Tel: (207) 624-8475, documenting the Company's violation of 24-A M.R.S.A. §§ 2164-D and 2436-A.

4. This settlement demand will be withdrawn, and our client will seek all available damages without limitation by this offer.

XII. DOCUMENT PRESERVATION NOTICE

This letter constitutes formal notice to preserve all documents, electronically stored information (ESI), and tangible evidence related to this claim, including but not limited to: the complete claim file; all adjuster notes, diaries, and activity logs; all reserve information and reserve change documentation; all internal communications; all expert reports and evaluations; all claim handling guidelines, manuals, and training materials; and all quality assurance or audit reports.

Destruction of any such material after receipt of this letter may constitute spoliation of evidence and give rise to adverse inferences and additional sanctions in litigation.

XIII. CONCLUSION

Maine requires that every motor vehicle liability policy sold in this State include UM/UIM coverage to protect insureds from the financial devastation of an encounter with an uninsured or underinsured driver. Our client paid premiums for precisely this protection. The Company's opportunity to honor that promise — and to resolve this matter fairly, cost-efficiently, and within the policy limits — expires on [__/__/____].

Please direct all communications regarding this matter to the undersigned.

Respectfully submitted,

[LAW FIRM NAME]

By: ___________________________________
[________________________________]
Maine Bar No. [____]
[________________________________]
[________________________________], ME [________]
Tel: [________________________________]
Fax: [________________________________]
Email: [________________________________]

Counsel for [________________________________]

ENCLOSURES:
☐ Policy declarations page and UM/UIM endorsement
☐ Equal-limits rejection form (if applicable)
☐ Police / crash report
☐ Complete medical records and bills
☐ Photographs of scene, vehicles, and injuries
☐ Proof of tortfeasor's insurance limits (or lack thereof)
☐ Employer verification / wage loss documentation
☐ Expert reports (medical, vocational, economic, life care plan)
☐ Accident reconstruction report (if applicable)

CC:
☐ [________________________________] (Client)
☐ [________________________________] / [Tortfeasor's Carrier] (re: consent to settle request)
☐ Maine Bureau of Insurance (if complaint filed simultaneously)

MAINE UM/UIM LAW — QUICK REFERENCE

SOURCES AND REFERENCES

• Maine Legislature — 24-A M.R.S.A. § 2902: https://legislature.maine.gov/statutes/24-a/title24-Asec2902.html
• Maine Legislature — 24-A M.R.S.A. § 2436: https://legislature.maine.gov/statutes/24-a/title24-Asec2436.html
• Maine Legislature — 24-A M.R.S.A. § 2436-A: https://legislature.maine.gov/statutes/24-a/title24-Asec2436-A.html
• Maine Legislature — 24-A M.R.S.A. § 2164-D: https://www.mainelegislature.org/legis/statutes/24-a/title24-Asec2164-D.html
• Maine Legislature — 14 M.R.S.A. § 156 (Comparative Negligence): https://mainelegislature.org/legis/statutes/14/title14sec156.html
• Maine Legislature — 14 M.R.S.A. § 752 (Statute of Limitations): https://www.mainelegislature.org/legis/statutes/14/title14ch205.pdf
• Maine.gov — Insurance Required by Law (UM/UIM): https://www.maine.gov/pfr/insurance/consumers/auto-insurance/insurance-required-by-law
• Marquis v. Farm Family Mut. Ins. Co., 628 A.2d 644 (Me. 1993): https://law.justia.com/cases/maine/supreme-court/1993/628-a-2d-644-0.html
• ALFA International Maine Insurance Law Compendium: https://www.alfainternational.com/compendium/insurance-law/maine/
• Berman & Simmons — UIM Offset Analysis (2022): https://www.bermansimmons.com/latest-news/2022/october/the-underinsured-motorist-offset-the-policy-cont/