UM/UIM Demand Letter - North Dakota

UM/UIM (UNINSURED/UNDERINSURED MOTORIST) DEMAND LETTER

State of North Dakota

[LAW FIRM LETTERHEAD]

SETTLEMENT COMMUNICATION — FOR RESOLUTION PURPOSES ONLY
SUBJECT TO N.D. R. EVID. 408 AND F.R.E. 408 WHERE APPLICABLE

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

Date: [__/__/____]

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

Attention: [________________________________], [________________________________]
Re: UM/UIM POLICY LIMITS DEMAND — NORTH DAKOTA

Dear [________________________________]:

I. INTRODUCTION AND NATURE OF DEMAND

This firm represents [________________________________] ("our client") regarding a claim for [uninsured / underinsured] motorist benefits arising from a motor vehicle collision on [__/__/____] in [________________________________], North Dakota. This letter constitutes a formal demand for payment of the full UM/UIM policy limits of $[________________________________].

North Dakota requires basic no-fault coverage under N.D. Cent. Code Chapter 26.1-41. Our client's PIP benefits have been [exhausted / substantially exhausted], and the injuries satisfy the statutory threshold for noneconomic tort damages. The tortfeasor's liability coverage is insufficient to compensate our client's damages, and the applicable UM/UIM coverage must be analyzed under §§ 26.1-40-15.1 through 26.1-40-15.7.

II. NORTH DAKOTA UM/UIM LAW — CONTROLLING AUTHORITY

A. Mandatory Coverage Requirements

North Dakota mandates UM/UIM coverage under N.D. Cent. Code § 26.1-40-15.2 and § 26.1-40-15.3. Covered motor vehicle liability policies must provide UM limits of $25,000 per person and $50,000 per accident, with UIM limits equal to the UM limits. On request, the insurer must make higher UM limits available under its rating plan, but need not offer more than the lesser of the insured's bodily-injury liability limits or $100,000/$300,000 (or an equivalent $300,000 combined single limit).

B. Anti-Stacking Provision — Critical North Dakota Rule

N.D. Cent. Code § 26.1-40-15.4 expressly prohibits stacking of UM/UIM limits across multiple vehicles or policies. The maximum available coverage may not exceed the highest applicable limit for one vehicle under one policy. When more than one policy applies, subsection (3) supplies the priority order and allows a lower-priority policy only to the extent its limit exceeds the higher-priority coverage.

C. North Dakota No-Fault PIP Framework and Tort Threshold

North Dakota's Auto Accident Reparations Act requires basic no-fault security. Basic no-fault benefits are capped at $30,000 per person per accident and cover defined economic loss, including:

• Reasonable and necessary medical expenses
• Work loss up to $150 per week under basic benefits
• Replacement services up to $15 per day

Noneconomic-loss threshold: A secured person is exempt from noneconomic damages unless the claimant sustained a “serious injury”: death, dismemberment, serious and permanent disfigurement, disability beyond 60 days, or medical expenses exceeding $2,500. See N.D. Cent. Code §§ 26.1-41-01(21), 26.1-41-08. The threshold does not independently define whether a vehicle is uninsured or underinsured. Our client's injuries satisfy it because [________________________________].

D. Exhaustion of Tortfeasor's Policy

Under N.D. Cent. Code § 26.1-40-15.6(6), UM/UIM coverage does not apply until all applicable bodily-injury liability limits are exhausted by settlement or judgment, or those limits (or the remaining portion) have been offered to the insured in writing. Here, [________________________________].

E. Modified Comparative Fault — 50% Bar

Under N.D. Cent. Code § 32-03.2-02, North Dakota follows modified comparative fault with a 50% bar: a claimant whose fault equals or exceeds 50% recovers nothing. Our client bears zero comparative fault for this collision for the reasons set forth below.

F. Statute of Limitations

N.D. Cent. Code § 28-01-16 generally supplies six-year periods for contract claims and injuries to a person not otherwise expressly covered. Accrual must be determined claim by claim, and § 26.1-40-15.6(5) excludes UM/UIM coverage once the applicable limitation period on the insured's claim against the motorist has expired.

III. POLICY INFORMATION AND COVERAGE ANALYSIS

A. Policy Details

B. Coverage Trigger — [Select Applicable]

For Uninsured Motorist (UM) Claims — the tortfeasor qualifies as "uninsured" under North Dakota law 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
☐ The owner/operator cannot be identified, the accident was reported to law enforcement as soon as practicable, and the injury was caused by physical contact or independently verified by a disinterested witness

For Underinsured Motorist (UIM) Claims — the tortfeasor qualifies as "underinsured" because:

☐ The applicable bodily-injury liability limit is less than our client's applicable UIM limit, or payments to other injured persons reduced the remaining liability limit below the UIM limit
☐ The tortfeasor's policy has been or will be exhausted through payment of its limits
☐ Our client's damages substantially exceed all available liability coverage

IV. THE COLLISION — LIABILITY ANALYSIS

A. Facts of the Collision

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

[________________________________]
[________________________________]
[________________________________]

B. Tortfeasor's Negligence Under North Dakota Law

The tortfeasor, [________________________________], was negligent under North Dakota law in the following particulars:

☐ Failure to maintain a proper lookout in violation of N.D. Cent. Code § 39-10-[____]
☐ Failure to yield right-of-way in violation of N.D. Cent. Code § 39-10-[____]
☐ Following too closely in violation of N.D. Cent. Code § 39-10-[____]
☐ Excessive speed or speed unsafe for conditions in violation of N.D. Cent. Code § 39-09-01
☐ Distracted driving (cell phone / other device) in violation of N.D. Cent. Code § 39-08-23
☐ Operating a motor vehicle while impaired in violation of N.D. Cent. Code § 39-08-01
☐ Running a red light or stop sign
☐ Improper lane change
☐ [________________________________]

C. Evidence Supporting Liability

1. Law Enforcement Report
[________________________________] Police Department / [________________________________] County Sheriff Crash Report No. [________________________________], dated [__/__/____], which [cites the tortfeasor for / documents the tortfeasor's fault by] [________________________________].

2. Eyewitness Statements
[____] independent eyewitnesses observed the collision and confirm the tortfeasor's fault. Names and contact information are available upon request.

3. Physical and Photographic Evidence
Point-of-impact analysis, skid marks, vehicle damage patterns, and debris field location corroborate our client's account.

4. Accident Reconstruction
[If applicable:] [________________________________], a licensed accident reconstructionist, has concluded that [________________________________].

D. Absence of Comparative Fault

Under North Dakota's modified comparative fault standard (N.D. Cent. Code § 32-03.2-02), our client bears no fault for this collision. [Describe affirmative facts establishing client's lawful conduct.] Even if any fault were attributed to our client — which is denied — it would be far below the 50% bar.

V. NO-FAULT / PIP STATUS

A. PIP Benefits Received

Our client received the following North Dakota no-fault benefits under the Auto Accident Reparations Act (N.D. Cent. Code Chapter 26.1-41):

B. PIP Exhaustion / Subrogation

☐ PIP benefits have been fully exhausted
☐ PIP benefits have not been exhausted; the PIP insurer has been notified of this claim
☐ The PIP carrier asserts a subrogation lien of $[________________________________]

VI. INJURIES, TREATMENT, AND PROGNOSIS

A. Injury Summary

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

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

B. Treatment Chronology

C. Current Condition and Prognosis

[________________________________]
[________________________________]

D. Permanent Impairment Rating

VII. DAMAGES

A. Medical Expenses (Past)

B. Future Medical Expenses (Present Value)

C. Lost Income and Earning Capacity

Past Lost Income:
Our client was unable to work from [__/__/____] to [__/__/____] ([____] weeks). Pre-accident gross income was $[____]/week. Note: The ND no-fault work-loss benefit of $150/week has been credited.

Future Lost Earning Capacity (Present Value): $[____]

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

Under North Dakota law, non-economic damages are recoverable in tort for injuries meeting the threshold. See N.D. Cent. Code § 26.1-41-08; see also N.D. Cent. Code § 32-03.2-04 (damages for non-economic loss). North Dakota does not impose a statutory cap on non-economic damages in motor vehicle tort actions.

[________________________________]
[________________________________]
[________________________________]

E. Wrongful Death Damages (If Applicable)

Under N.D. Cent. Code §§ 32-21-01 and 32-21-02, a wrongful-death action permits damages proportionate to the injury resulting from the death to the persons entitled to recover. Depending on proof and governing law, claimed damages may include:

☐ Pecuniary loss of the decedent's contributions
☐ Loss of companionship and society
☐ Funeral and burial expenses: $[____]
☐ Pre-death medical expenses: $[____]

F. Total Damages Summary

VIII. DEMAND CALCULATION — UIM BENEFITS

We hereby demand payment of the full UIM per-person policy limit of $[________________________________]. Our client's net damages after the tortfeasor's payment and PIP credit remain $[________________________________], which substantially exceeds the available UIM limit. This is a clear policy-limits case.

IX. SETTLEMENT NOTICE / PRESERVATION OF SUBROGATION

This letter gives advance written notice under N.D. Cent. Code § 26.1-40-15.5(2) of a tentative settlement with [________________________________] for $[________________________________].

The UIM carrier has 30 days after receipt of this notice to advance an amount equal to the tentative settlement if it wishes to preserve full subrogation rights. If it fails to make that advance, it has no right of subrogation against the underinsured motorist. Counsel must still review § 26.1-40-15.6(7) and the policy before executing any settlement because an agreement that adversely affects the insurer's rights can limit coverage outside the statutory exception.

Please confirm receipt and state whether [________________________________] will make the statutory advance.

X. BAD FAITH WARNING — NORTH DAKOTA LAW

North Dakota recognizes a common law cause of action for breach of the implied covenant of good faith and fair dealing in the insurance context. Corwin Chrysler-Plymouth, Inc. v. Westchester Fire Ins. Co., 279 N.W.2d 638, 641 (N.D. 1979); Seifert v. Farmers Union Mut. Ins. Co., 497 N.W.2d 694 (N.D. 1993). An insurer owes its own insured a duty to handle claims fairly, promptly, and reasonably.

N.D. Cent. Code § 26.1-04-03(9) identifies the following as unfair claim-settlement practices when committed without just cause and with a frequency indicating a general business practice:

☐ Knowingly misrepresenting pertinent facts or policy provisions
☐ Failing to acknowledge communications with reasonable promptness
☐ Failing to adopt and implement reasonable claim investigation standards
☐ Not attempting in good faith to effectuate prompt, fair, and equitable settlement when liability is reasonably clear
☐ Compelling the insured to litigate by offering substantially less than the amount ultimately recovered

For a proven obligation not arising from contract, exemplary damages may be available under N.D. Cent. Code § 32-03.2-11 upon clear and convincing proof of oppression, fraud, or malice, subject to the greater-of-two-times-compensatory-or-$250,000 cap and the statute's pleading procedure. UM/UIM coverage itself excludes punitive and other noncompensatory damages under § 26.1-40-15.6(4). The official rate for judgments entered in 2026 is 10.00%. Prejudgment interest is claim-specific: § 32-03-04 applies to damages certain or capable of calculation from a vested date, while § 47-14-05 supplies a 6% legal rate unless a valid written contract provides otherwise.

Claim handling unsupported by a reasonable basis may support remedies under governing common law, but disagreement over liability or damages is not automatically bad faith; §§ 26.1-40-15.2(4) and 15.3(3) expressly allow the insurer to press defenses available to the motorist.

XI. ARBITRATION

A. Policy Arbitration Clause

The policy [contains / does not contain] an arbitration provision for UM/UIM disputes.

☐ If both parties agree to arbitrate: N.D. Cent. Code § 26.1-40-15.7(4) permits binding arbitration of liability and damages by agreement. A policy may exclude coverage questions from arbitration. This letter proposes arbitration on the following issues: [________________________________].

☐ If no arbitration clause: Upon rejection or non-response to this demand, we will file suit in the [____] County District Court, State of North Dakota.

XII. RESPONSE DEADLINE AND CONSEQUENCES

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

Failure to accept this demand will result in:

1. Initiation of arbitration if both parties agree, or filing of suit in North Dakota District Court for [____] County
2. Claims supported by North Dakota common law, with any regulatory-practice evidence evaluated under N.D. Cent. Code § 26.1-04-03(9)
3. Claims for punitive/exemplary damages under N.D. Cent. Code § 32-03.2-11 upon clear and convincing evidence of oppressive or fraudulent conduct
4. Prejudgment interest if authorized by N.D. Cent. Code §§ 32-03-04 and 47-14-05
5. A formal complaint filed with the North Dakota Insurance Department (NDID), 600 E. Boulevard Avenue, Dept. 401, Bismarck, ND 58505-0320; (701) 328-2440
6. Referral to the NDID for investigation of whether [________________________________]'s conduct constitutes a pattern of unfair claims practices under N.D. Cent. Code § 26.1-04-03

XIII. CONCLUSION

Our client purchased UM/UIM coverage as required by North Dakota law for exactly this circumstance: to be protected when a negligent driver lacks sufficient insurance. [________________________________]'s own insured has sustained serious injuries, exhausted PIP benefits, and secured the tortfeasor's policy. The only remaining source of fair compensation is the UM/UIM coverage our client paid premiums to secure.

We urge [________________________________] to carefully review the evidence enclosed and tender its policy limits promptly.

Respectfully submitted,

[________________________________]

By: ___________________________
[________________________________]
N.D. State Bar No. [____]
[________________________________]
[City], ND [Zip]
[________________________________] (Tel.)
[________________________________] (Email)

Counsel for [________________________________]

ENCLOSURES:

☐ Policy declarations page and UM/UIM endorsements
☐ Tortfeasor's policy confirmation / coverage letter
☐ Proof of tortfeasor policy exhaustion (release or judgment)
☐ Law enforcement crash report (Report No. [________________________________])
☐ Medical records and bills — all providers
☐ PIP payment summary / PIP insurer statement of benefits paid
☐ Work loss documentation (pay stubs, employer letter, tax records)
☐ Photographs of vehicles and scene
☐ Impairment rating report from [________________________________]
☐ Life care plan / future damages report (if applicable)
☐ Accident reconstruction report (if applicable)

CC:

• [________________________________] (Client)
• [________________________________], Tortfeasor's Carrier (re: consent to settle)

NORTH DAKOTA UM/UIM — QUICK REFERENCE

SOURCES AND REFERENCES

• N.D. Cent. Code §§ 26.1-40-15.1 through 26.1-40-15.7 (UM/UIM): https://ndlegis.gov/cencode/t26-1c40.pdf
• N.D. Cent. Code Chapter 26.1-41 (Auto Accident Reparations Act): https://ndlegis.gov/cencode/t26-1c41.pdf
• N.D. Cent. Code § 26.1-04-03 (Unfair Insurance Practices): https://ndlegis.gov/cencode/t26-1c04.pdf
• N.D. Cent. Code Chapter 32-03.2 (Comparative Fault and Damages): https://ndlegis.gov/cencode/t32c03-2.pdf
• N.D. Cent. Code § 28-01-16 (Limitations): https://ndlegis.gov/cencode/t28c01.pdf
• N.D. Cent. Code § 32-03-04 (Interest on Certain Damages): https://ndlegis.gov/cencode/t32c03.pdf
• N.D. Cent. Code § 47-14-05 (Legal Interest Rate): https://ndlegis.gov/cencode/t47c14.pdf
• N.D. R. Evid. 408: https://www.ndcourts.gov/legal-resources/rules/ndrev/408
• Corwin Chrysler-Plymouth, Inc. v. Westchester Fire Ins. Co., 279 N.W.2d 638 (N.D. 1979): https://www.ndcourts.gov/supreme-court/opinion/279NW2d638
• Seifert v. Farmers Union Mut. Ins. Co., 497 N.W.2d 694 (N.D. 1993): https://www.ndcourts.gov/supreme-court/opinion/497NW2d694
• North Dakota Insurance Department (NDID): https://www.insurance.nd.gov/consumers/insurance/auto
• ND Courts — Interest Rate on Judgments for 2026: https://www.ndcourts.gov/news/north-dakota/north-dakota-supreme-court/general-news/interest-rate-set-for-2026-judgments