UM/UIM Demand Letter - Mississippi

UM/UIM (UNINSURED/UNDERINSURED MOTORIST) DEMAND LETTER

State of Mississippi

[LAW FIRM LETTERHEAD]

SETTLEMENT COMMUNICATION — FOR RESOLUTION PURPOSES ONLY
MISS. R. EVID. 408 / FED. R. EVID. 408 MAY LIMIT SPECIFIED USES OF DISPUTED-CLAIM NEGOTIATIONS; THEY DO NOT CREATE A GENERAL PRIVILEGE

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

Date: [__/__/____]

[INSURANCE COMPANY NAME]
[________________________________]
[________________________________]
[________________________________], [____] [________]

Attention: [________________________________], [________________________________]
Re: FORMAL UM/UIM POLICY LIMITS DEMAND — MISSISSIPPI 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. Central Time

Dear [________________________________]:

I. INTRODUCTION AND NATURE OF DEMAND

This firm represents [________________________________] ("our client") in connection with a claim for [UNINSURED / UNDERINSURED] motorist benefits under Mississippi law arising from a motor vehicle collision on [__/__/____]. Pursuant to Miss. Code Ann. § 83-11-101, every automobile liability policy issued or delivered in Mississippi must contain UM/UIM coverage unless the named insured has rejected such coverage in a signed writing on the form prescribed by the Mississippi Insurance Department (MID). No valid written rejection exists in this case.

This letter constitutes a formal demand for payment of the full UM/UIM policy limits of $[________________________________]. Our client's compensable damages substantially exceed the available coverage and the at-fault driver's liability limits, making this a clear UM/UIM limits case under Mississippi law.

II. MISSISSIPPI UM/UIM LEGAL FRAMEWORK

A. Mandatory Coverage and Minimum Limits

Under Miss. Code Ann. § 83-11-101, no automobile liability insurance policy shall be issued or delivered in Mississippi after January 1, 1967 unless it provides uninsured motorist coverage. The statutory minimum limits are $25,000 per person / $50,000 per accident for bodily injury and $25,000 for property damage — identical to the limits required under the Mississippi Motor Vehicle Safety Responsibility Law. Any rejection of UM coverage must be in a signed writing; oral rejections are invalid.

B. Class I vs. Class II Insureds — Miss. Code Ann. § 83-11-103

Mississippi distinguishes between two classes of insureds:

• Class I Insureds: Named insured, resident spouse, and resident relatives. Class I insureds may stack UM coverage across all vehicles on the policy. Anti-stacking provisions in policies are void as applied to Class I insureds.
• Class II Insureds: Permissive drivers and guest passengers. Class II insureds may stack only the coverage on the vehicle they occupied at the time of the collision with their own separate personal policy, if any.

Our client is a Class [____] Insured under the policy and is entitled to stack accordingly.

C. Stacking Analysis

Mississippi's anti-stacking provisions are generally void and unenforceable for Class I insureds. The sole exception is a commercial fleet policy insuring multiple vehicles under a single policy, which may provide non-stacked coverage if the policy provides at least four (4) times the statutory minimum limits. That exception does not apply here.

D. UIM Triggering Mechanism — Limits-to-Limits Comparison

Mississippi uses a limits-to-limits comparison to determine whether UIM coverage is triggered. The stacked UM/UIM limits must exceed the at-fault driver's liability policy limits — actual recovery amounts are irrelevant to this comparison. Here:

E. Consent to Settle Requirement

CRITICAL NOTICE: Under Mississippi law, an insured who settles with and releases the at-fault driver without the prior written consent of the UM/UIM carrier forfeits all UM/UIM benefits. See Miss. Code Ann. § 83-11-107. We hereby formally request written consent to settle with the tortfeasor's liability carrier, [________________________________], for its policy limits of $[________________________________].

Please provide written consent to settle within [____] days of this letter. Failure to respond will be treated as consent unreasonably withheld, which itself constitutes actionable bad faith under Mississippi law.

F. Policy Coverage Summary

III. THE COLLISION AND LIABILITY

A. Facts of the Collision

On [__/__/____], at approximately [____]:00 [A.M./P.M.], our client [________________________________] was [________________________________] at or near [________________________________], [________________________________] County, Mississippi.

[PROVIDE DETAILED NARRATIVE OF THE COLLISION — including road/weather conditions, direction of travel, point of impact, and sequence of events]

B. Uninsured / Underinsured Status of Tortfeasor

The tortfeasor, [________________________________], qualifies as an [UNINSURED / UNDERINSURED] motorist under Mississippi law for the following reason(s):

☐ The tortfeasor carried no liability insurance at the time of the collision
☐ The tortfeasor's liability insurer has denied coverage
☐ The tortfeasor's liability insurer is insolvent
☐ The tortfeasor was a hit-and-run driver with physical contact between vehicles
☐ The tortfeasor's policy limits of $[____________] are insufficient to compensate our client for all damages sustained

C. Tortfeasor's Negligence

The tortfeasor was negligent under Mississippi law, including without limitation:

☐ Failure to maintain proper lookout — Miss. Code Ann. § 63-3-1213
☐ Failure to yield right-of-way — Miss. Code Ann. § 63-3-801 et seq.
☐ Following too closely — Miss. Code Ann. § 63-3-619
☐ Excessive speed or speed unreasonable for conditions — Miss. Code Ann. § 63-3-501
☐ Distracted driving / use of handheld electronic device — Miss. Code Ann. § 63-3-1213.1
☐ Running red light or stop sign — Miss. Code Ann. § 63-3-505
☐ Improper lane change — Miss. Code Ann. § 63-3-603
☐ Driving under the influence of alcohol or drugs — Miss. Code Ann. § 63-11-30
☐ [________________________________]

D. Evidence of Negligence and Liability

1. Traffic Crash Report
[________________________________] Police Department / Mississippi Highway Patrol Crash Report No. [________________________________], dated [__/__/____], identifies the tortfeasor as the at-fault driver. [Describe findings, citations issued, etc.]

2. Witness Statements
[____] independent witness(es) confirmed the tortfeasor's fault: [________________________________].

3. Physical Evidence
Point of impact, debris field, vehicle damage patterns, and [________________________________] establish that the tortfeasor caused this collision.

4. Expert Analysis
[________________________________], accident reconstructionist, has concluded that [________________________________].

5. Admissions
The tortfeasor [________________________________] admitted fault at the scene.

E. Comparative Fault Analysis — Miss. Code Ann. § 11-7-15

Mississippi follows pure comparative fault under Miss. Code Ann. § 11-7-15. A claimant may recover even if 99% at fault, with damages reduced proportionally. Here, our client bears no comparative fault for this collision. Even if [CARRIER SHORT NAME] argues partial fault, our client's damages — as set forth below — far exceed available coverage at any allocation of fault.

IV. OUR CLIENT'S INJURIES AND MEDICAL TREATMENT

A. Summary of Injuries

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

Primary Injuries:

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

Secondary / Consequential Injuries:

• [________________________________]
• [________________________________]

B. Treating Providers and Chronology

C. Current Medical Condition and Prognosis

[DESCRIBE CURRENT CONDITION, ONGOING SYMPTOMS, AND PROGNOSIS INCLUDING ANY PERMANENT RESTRICTIONS]

D. Permanent Impairment (if applicable)

V. ITEMIZED DAMAGES

A. Past Medical Expenses

B. Future Medical Expenses (Present Value)

Life Care Plan prepared by [________________________________], dated [__/__/____], is enclosed.

C. Lost Wages and Lost Earning Capacity

Vocational/economic analysis by [________________________________] is enclosed.

D. Non-Economic Damages

Under Mississippi law, non-economic damages (pain and suffering, mental anguish, loss of enjoyment of life, permanent disfigurement, loss of consortium) are recoverable, but are capped at $1,000,000 per plaintiff in automobile collision cases under Miss. Code Ann. § 11-1-60(2)(b) (the separate, lower $500,000 cap in § 11-1-60(2)(a) applies only to medical-malpractice actions). Economic damages are not subject to this cap.

[DESCRIBE PAIN, SUFFERING, MENTAL ANGUISH, AND LOSS OF ENJOYMENT WITH SPECIFICITY]

E. Total Damages Summary

VI. UIM BENEFITS CALCULATION

A. Offset for Tortfeasor's Liability Payment (Kuehling Offset)

Under the Kuehling offset recognized by Mississippi courts (State Farm Mut. Auto. Ins. Co. v. Kuehling, 475 So. 2d 1159 (Miss. 1985)), the UIM carrier may reduce its benefits by amounts actually paid by the tortfeasor's liability carrier — the insured recovers the UIM limits less the tortfeasor's liability payment. Any subrogation credit or offset remains subject to Mississippi's "made whole" doctrine (Hare v. State, 733 So. 2d 277 (Miss. 1999)), under which the carrier's recovery is delayed until the insured has been fully compensated.

Medical payments (MedPay) and workers' compensation payments may NOT be used to offset UM/UIM limits under Mississippi law.

B. Policy Limits Demand

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

Our client's total compensable damages of $[________________________________] vastly exceed the combined liability and UM/UIM coverage available. There is no legitimate basis to deny or reduce this claim.

VII. SUBROGATION AND PRESERVATION OF RIGHTS — Miss. Code Ann. § 83-11-107

Upon payment of UM/UIM benefits, [CARRIER SHORT NAME] is subrogated to our client's rights against the tortfeasor to the extent of any payment made. We will cooperate with any subrogation effort provided it does not compromise our client's full recovery. Any action against the tortfeasor must be brought within the applicable statute of limitations — three years under Miss. Code Ann. § 15-1-49.

VIII. BAD FAITH WARNING — MISSISSIPPI COMMON LAW

A. The "No Arguable Reason" Standard

[CARRIER SHORT NAME] owes our client, its own insured, duties of good faith and fair dealing under Mississippi common law. Standard Life Ins. Co. v. Veal, 354 So.2d 239 (Miss. 1978). To avoid bad faith liability under Mississippi's three-part test, [CARRIER SHORT NAME] must show:

1. An arguable or legitimate basis — in law or fact — for any denial or reduction;
2. The absence of willful or malicious conduct; and
3. The absence of gross and reckless disregard for our client's rights.

Andrew Jackson Life Ins. Co. v. Williams, 566 So.2d 1172 (Miss. 1990); Jenkins v. Ohio Cas. Ins. Co., 794 So.2d 228 (Miss. 2001).

If [CARRIER SHORT NAME] denies or delays payment without an arguable basis, it exposes itself to:

• All UM/UIM policy benefits
• Consequential damages flowing from the delay or denial
• Emotional distress damages (Universal Life Ins. Co. v. Veasley, 610 So.2d 290 (Miss. 1992))
• Punitive damages upon clear and convincing evidence of malice or gross negligence — Miss. Code Ann. § 11-1-65

Even an unreasonable delay — without ultimate denial — can constitute bad faith. James v. State Farm, 743 F.3d 65 (5th Cir. 2014) (3–6 month unjustified delay created jury question).

B. Punitive Damages Caps — Miss. Code Ann. § 11-1-65

If bad faith is established, punitive damages are capped as follows based on [CARRIER SHORT NAME]'s net worth:

Punitive damages must be proved by clear and convincing evidence.

IX. DEMAND AND RESPONSE DEADLINE

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

This demand is made for the full stacked UM/UIM policy limits of $[________________________________]. Our client's damages of $[________________________________] clearly exceed all available coverage, and there is no arguable basis to deny, delay, or reduce payment.

Consequences of Failure to Respond

If [CARRIER SHORT NAME] fails to tender the full policy limits by the deadline:

1. Suit will be filed in the Circuit Court of [________________________________] County, Mississippi for all UM/UIM benefits plus bad faith damages under Mississippi common law;
2. We will pursue punitive damages under Miss. Code Ann. § 11-1-65 upon clear and convincing proof of malice or gross negligence;
3. A formal complaint will be filed with the Mississippi Insurance Department (MID) at the address below under Miss. Code Ann. §§ 83-5-35 and 83-5-45; and
4. We will seek attorney's fees as an element of any punitive damages award.

X. CONCLUSION

This claim presents clear UM/UIM coverage, uncontested tortfeasor negligence, serious injuries, and damages that dwarf available coverage. [CARRIER SHORT NAME] has a fair and final opportunity to resolve this matter by tendering the full policy limits to its own insured under Mississippi law.

Please direct all communications to the undersigned.

Respectfully submitted,

[________________________________]

By: ___________________________________
[________________________________]
Mississippi Bar No. [________________________________]
[________________________________]
[________________________________], MS [________________________________]
Telephone: [________________________________]
Email: [________________________________]

Counsel for [________________________________]

ENCLOSURES:

• Certified copies of all medical records and itemized bills
• Life care plan and/or vocational/economic report (if applicable)
• Traffic Crash Report No. [________________________________]
• Photographs of vehicles and scene
• Witness statements
• Policy declarations page and UM/UIM endorsements
• Tortfeasor's liability policy information
• Proof of exhaustion or pending settlement with tortfeasor's carrier

CC:

• [________________________________] (Client)
• [________________________________] (Tortfeasor's Carrier — re: consent to settle)
• Mississippi Insurance Department, 501 North West Street, Woolfolk State Office Building, Jackson, MS 39201
  Telephone: (601) 359-3569 | Website: www.mid.ms.gov

MISSISSIPPI UM/UIM LAW QUICK REFERENCE

SOURCES AND REFERENCES

• Miss. Code Ann. § 83-11-101: https://law.justia.com/codes/mississippi/title-83/chapter-11/article-3/section-83-11-101/
• Miss. Code Ann. § 83-11-103: https://law.justia.com/codes/mississippi/2020/title-83/chapter-11/article-3/section-83-11-103/
• Miss. Code Ann. § 83-11-107: https://law.justia.com/codes/mississippi/title-83/chapter-11/article-3/section-83-11-107/
• Miss. Code Ann. § 11-1-65 (Punitive Damages): https://law.justia.com/codes/mississippi/title-11/chapter-1/section-11-1-65/
• Mississippi UM Law Primer (Holcomb Law Group): https://holcombgroup.com/primer-on-mississippi-um-law-from-a-claims-processing-perspective/
• Mississippi Insurance Law A-to-Z (Holcomb Law Group): https://holcombgroup.com/mississippi-insurance-related-law-2020-update/
• Mississippi Insurance Department: https://www.mid.ms.gov
• Chartwell Law — Mississippi Bad Faith Summary: https://www.chartwelllaw.com/bad-faith-claims-map/mississippi
• Robins Kaplan — Mississippi Claims Handling Practices: https://www.robinskaplan.com/resources/publications/2019/09/claims-handling-practices-mississippi