UM/UIM Demand Letter - Nebraska

UM/UIM (UNINSURED/UNDERINSURED MOTORIST) DEMAND LETTER

State of Nebraska

[LAW FIRM LETTERHEAD]

SETTLEMENT COMMUNICATION — FOR RESOLUTION PURPOSES ONLY
ADMISSIBILITY GOVERNED BY NEB. REV. STAT. § 27-408 AND OTHER APPLICABLE LAW

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

Date: [__/__/____]

[INSURANCE COMPANY NAME]
[________________________________]
[________________________________]
[________________________________]

Attention: [________________________________], [________________________________]
Re: FORMAL UM/UIM POLICY LIMITS DEMAND — NEBRASKA LAW
Insured/Claimant: [________________________________]
Policy Number: [________________________________]
Claim Number: [________________________________]
Date of Loss: [__/__/____]
UM/UIM Policy Limits: $[________________________________]
Tortfeasor: [________________________________]
Tortfeasor's Carrier: [________________________________]
Tortfeasor's Liability 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 Nebraska law arising from a motor vehicle collision on [__/__/____]. This letter constitutes a formal demand for payment of the full UM/UIM policy limits of $[________________________________] pursuant to Nebraska Revised Statute § 44-6408 et seq.

Our client's documented damages far exceed the available third-party coverage. Nebraska's mandatory UM/UIM statutes exist precisely to protect your insured from the financial consequences of collisions caused by uninsured or inadequately insured motorists. [________________________________] (the "Company") is obligated to honor that promise.

This demand is time-limited and expires on [__/__/____].

II. NEBRASKA UM/UIM STATUTORY FRAMEWORK

A. Mandatory Coverage Requirements — Neb. Rev. Stat. § 44-6408

Under Neb. Rev. Stat. § 44-6408, a policy insuring against liability for bodily injury or death may not be delivered, issued for delivery, or renewed for a vehicle principally garaged in Nebraska unless it provides uninsured and underinsured motorist coverage. The statutory minimum limits for each coverage are:

• $25,000 per person for bodily injury or death
• $50,000 per occurrence for bodily injury or death to two or more persons

At the named insured's written request, the insurer must provide higher limits in accordance with its rating plan and rules, but § 44-6408 does not require the insurer to provide more than $100,000 per person / $300,000 per accident. The actual policy may provide higher limits. The limits applicable to this claim are $[________________________________] per person / $[________________________________] per accident.

B. Anti-Stacking Rule — Neb. Rev. Stat. §§ 44-6410 and 44-6411

Nebraska is an anti-stacking jurisdiction. Under Neb. Rev. Stat. § 44-6410, the limits of liability for UM/UIM coverage for two or more motor vehicles insured under the same policy or under separate policies shall not be added together, combined, or stacked to determine the limit of coverage available for any one accident, except as provided in § 44-6411.

Under Neb. Rev. Stat. § 44-6411, where an insured is entitled to UM/UIM coverage under more than one policy, the maximum recovery shall not exceed the highest single applicable policy limit. [STACKING ANALYSIS FOR THIS CLAIM: [________________________________]]

C. Liability-Limits Settlement Notice and Subrogation — Neb. Rev. Stat. § 44-6412

The statutory UIM definition asks whether the applicable liability insurance or bond is less than the insured's bodily-injury damages; § 44-6409 then limits UM/UIM liability to those damages less amounts paid by legally liable persons or organizations, subject to the UM/UIM policy limit. Review the policy separately for enforceable settlement or exhaustion terms.

If a tentative agreement to settle for liability limits has been reached, the insured must give the UIM insurer written notice by certified or registered mail. The notice must include written documentation of lost wages and medical bills and written authorizations for employer and medical-provider reports. Under § 44-6412(2), the UIM insurer then has 30 days after receipt to substitute its payment for the tentative settlement amount. If it does not timely substitute payment, it loses its UIM-payment subrogation right; the statute does not say that silence is blanket consent to every settlement term.

D. Applicable Statute of Limitations

Nebraska generally provides five years for an action on a written insurance contract under § 25-205, accruing when the insurer breaches or fails to perform. But § 44-6413(1)(e) can bar UM/UIM coverage when the limitation period on the underlying claim against the uninsured or underinsured motorist expires. Most injury actions fall under the four-year period in § 25-207(3). Counsel must calendar and preserve both the underlying tort claim and the policy claim, including the procedures in § 44-6412; do not rely on this demand to toll either period.

III. POLICY COVERAGE SUMMARY

IV. COVERAGE TRIGGER

A. For Uninsured Motorist (UM) Claims

The tortfeasor's vehicle qualifies as an "uninsured motor vehicle" under Neb. Rev. Stat. § 44-6405 because (check all that apply):

☐ There was no bodily injury liability insurance or bond applicable at the time of the accident — § 44-6405(1)
☐ Liability insurance applied but the insurer denied coverage — § 44-6405(2)(a)
☐ The insurer is or became insolvent (as described in § 44-2403) within four years after the accident — § 44-6405(2)(b)
☐ The owner/operator is unknown and there was actual physical contact between that vehicle and our client or our client's vehicle — § 44-6405(3)
☐ The owner/operator is unknown, there was no physical contact, and the accident was reported to law enforcement as required and the facts are corroborated by an independent, disinterested witness — § 44-6405(4)
☐ Other: [________________________________]

B. For Underinsured Motorist (UIM) Claims

The vehicle qualifies as an "underinsured motor vehicle" under § 44-6406 because the applicable bodily-injury liability insurance or bond is less than the insured's bodily-injury damages (or has been reduced below those damages by payments to other injured persons). Document the following:

☐ Applicable liability insurance or bond: $[________________________________]
☐ Our client's compensable damages exceed the tortfeasor's total available liability limits
☐ A tentative liability-limits settlement has been reached and compliant § 44-6412(2) notice has been sent

V. THE COLLISION AND LIABILITY

A. Facts of the Collision

On [__/__/____], at approximately [________] [a.m./p.m.], our client [________________________________] was operating a motor vehicle [traveling/stopped/parked] at or near [________________________________], [City], Nebraska.

[________________________________________________________________________________________________
________________________________________________________________________________________________
________________________________________________________________________________________________]

B. Tortfeasor's Negligence Under Nebraska Law

The tortfeasor, [________________________________], was negligent under Nebraska common law and, where applicable, the Nebraska Rules of the Road (Neb. Rev. Stat. Chapter 60, Art. 6), in the following respects:

☐ Failure to maintain a proper lookout
☐ Failure to yield right-of-way
☐ Following too closely — Neb. Rev. Stat. § 60-6,140
☐ Excessive speed for conditions — Neb. Rev. Stat. § 60-6,185
☐ Reading, typing, or sending a written communication on a handheld device while the vehicle was moving — Neb. Rev. Stat. § 60-6,179.01
☐ Operating while impaired (DUI) — Neb. Rev. Stat. § 60-6,196
☐ Running red light or stop sign
☐ Improper lane change or unsafe turn
☐ Other: [________________________________]

C. Evidence Establishing Liability

1. Law Enforcement Report
[________________________________] Police Department / Nebraska State Patrol Traffic Crash Report, Report No. [________________________________], dated [__/__/____], which [cites/does not cite] the tortfeasor for [________________________________].

2. Witness Statements
[____] independent witnesses confirm the tortfeasor's fault:

• [________________________________]
• [________________________________]

3. Physical Evidence
[________________________________]

4. Expert Opinion (if applicable)
[________________________________], accident reconstructionist, has concluded: [________________________________]

D. Comparative Fault Analysis — Neb. Rev. Stat. § 25-21,185.09

Under Neb. Rev. Stat. § 25-21,185.09, negligence chargeable to the claimant proportionally reduces damages and bars recovery if it is equal to or greater than the total negligence of all persons against whom recovery is sought. In a two-side comparison this is commonly described as a 50% bar, but counsel must compare the claimant with the full group specified by the statute. Our client's alleged negligence is 0% [or [____]%].

VI. CLIENT'S INJURIES AND MEDICAL TREATMENT

A. Injury Summary

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

Primary Diagnoses:

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

Secondary/Consequential Conditions:

• [________________________________]

B. Medical Treatment Timeline

C. Current Condition and Prognosis

[________________________________________________________________________________________________
________________________________________________________________________________________________]

D. Permanent Impairment Rating

Examining/Rating Physician: [________________________________], M.D., dated [__/__/____]

VII. DAMAGES

A. Past Medical Expenses

B. Future Medical Expenses

C. Lost Income

Past Lost Earnings:
Our client was unable to work from [__/__/____] through [__/__/____] ([____] days / [____] weeks).

• Gross earnings rate: $[____________] per [day/week/month]
• Total Past Lost Earnings: $[____________]

Future Lost Earning Capacity (Present Value):
[____________________________________________________________]

• Total Future Lost Earning Capacity: $[____________]

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

Nebraska's current general tort-damages instruction permits fact-specific recovery for physical pain, mental suffering or emotional distress, inconvenience, and other listed noneconomic losses proximately caused by negligence. See NJI2d Civ. 4.00, Appendix 5 (effective January 2022). Include only categories supported by the evidence and applicable instructions.

[________________________________________________________________________________________________
________________________________________________________________________________________________
________________________________________________________________________________________________]

Non-economic damages estimated at: $[____________]

E. Total Damages Summary

VIII. UIM BENEFIT CALCULATION

Nebraska law does not permit stacking of UM/UIM limits across vehicles (Neb. Rev. Stat. § 44-6410). If more than one policy applies, § 44-6411 caps total recovery at the highest limit of any one applicable policy and supplies priority rules. The maximum available limit after applying those rules is $[________________________________].

Under Neb. Rev. Stat. § 44-6409, the Company's maximum liability is our client's total damages less amounts paid by or for any legally liable party, subject to the coverage limit. Critically, § 44-6409(2) provides that the UM/UIM limits shall not be reduced by any first-party medical payments (Med-Pay) benefits, and UM/UIM coverage is excess over Med-Pay. Any Med-Pay payments therefore do not offset the UIM benefits demanded here.

IX. BAD FAITH WARNING UNDER NEBRASKA LAW

[________________________________] owes a covered policyholder the implied covenant of good faith and fair dealing. Millard Gutter Co. v. Shelter Mutual Insurance Co., 312 Neb. 606, 980 N.W.2d 420 (2022) restates the two elements of first-party bad faith:

1. The absence of a reasonable basis for denying (or delaying) benefits under the policy; and
2. The insurer's knowledge of, or reckless disregard for, the lack of a reasonable basis for the denial or delay.

Whether the insurer had a reasonable or arguable basis is evaluated from the information available when it acted. Counsel should state the specific facts showing why the denial or delay lacked a reasonable basis and why the insurer knew or recklessly disregarded that deficiency: [____________________________________________________________]. Do not characterize the claim as indisputably bad faith unless the evidence supports both elements.

Attorney Fees Under Neb. Rev. Stat. § 44-359: In a qualifying action upon an insurance policy, the court, upon rendering judgment against the insurer, must allow a reasonable attorney's fee as taxable costs. But no fee is recoverable if the plaintiff fails to obtain judgment for more than an offer made in accordance with Neb. Rev. Stat. § 25-901. The statute does not make every informal claim tender equivalent to a § 25-901 offer.

NDOI Complaint: Section 44-1540 lists prohibited claims practices, including specified failures to investigate, communicate, explain, and attempt good-faith settlement when liability is reasonably clear. Under § 44-1539, an act becomes an unfair claims settlement practice when committed flagrantly and in conscious disregard of the Act or with sufficient frequency to indicate a general business practice. If supported by the claim record, our client may submit a complaint to the Nebraska Department of Insurance (877-564-7323; P.O. Box 95087, Lincoln, NE 68509-5087; online complaint portal at doi.nebraska.gov). The Department states that it cannot order payment or decide fault.

Bad-Faith Damages: Millard Gutter confirms that a policyholder who proves first-party bad faith may recover traditional tort damages, including mental-distress and economic-loss damages, when proximately caused by the bad-faith conduct. Section 44-359 fees apply only under that statute's separate terms.

X. DEMAND AND RESPONSE DEADLINE

A. Formal Demand

We hereby demand payment of the full UM/UIM policy limits of $[________________________________] ([$[____] per person limit applicable to this single-claimant claim).

This demand is supported by documented damages of $[________________________________], which far exceed the available coverage. This is a clear policy-limits case. No legitimate coverage dispute exists.

B. Response Deadline

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

If the Company fails to accept this demand before the deadline:

1. We will proceed to UM/UIM arbitration (if required by policy) or file suit in the District Court of [________________________________] County, Nebraska;
2. We will add a first-party bad faith count if the evidence supports the elements stated in Millard Gutter;
3. We will seek attorney's fees as taxable costs under Neb. Rev. Stat. § 44-359;
4. We will file a formal consumer complaint with the Nebraska Department of Insurance (NDOI), P.O. Box 95087, Lincoln, NE 68509-5087, phone: 877-564-7323; and
5. We will seek prejudgment interest to the extent authorized by Neb. Rev. Stat. §§ 45-103.02 and 45-104, after satisfying the applicable statutory prerequisites.

XI. CONCLUSION

Nebraska law imposes a clear obligation: when an insurer issues a UM/UIM policy, it must pay covered claims fairly and promptly. Our client paid premiums for this protection and is now entitled to its benefits. The evidence of liability and damages is overwhelming. [________________________________] has a limited window to resolve this claim at the policy limits and avoid substantially greater exposure through litigation.

We encourage prompt and good-faith resolution.

Respectfully submitted,

[________________________________]

By: ___________________________________________
[________________________________]
Nebraska Bar No. [________]
[________________________________]
[________________________________], NE [________]
Telephone: [________________________________]
Facsimile: [________________________________]
Email: [________________________________]

Counsel for [________________________________]

ENCLOSURES:

• Policy declarations page and UM/UIM endorsement
• Police/crash report (Report No. [________________________________])
• Medical records and bills (providers listed in Section VI)
• Permanent impairment rating report
• Wage/income loss documentation
• Photographs of vehicles and scene
• Witness statements
• Expert report(s) (if applicable)

CC:

• [________________________________] (client)
• [________________________________], [tortfeasor's liability carrier] (re: consent-to-settle)

NEBRASKA UM/UIM LAW — QUICK REFERENCE

SOURCES AND REFERENCES

• Neb. Rev. Stat. § 44-6405 (uninsured motor vehicle, defined): https://nebraskalegislature.gov/laws/statutes.php?statute=44-6405
• Neb. Rev. Stat. § 44-6406 (underinsured motor vehicle, defined): https://nebraskalegislature.gov/laws/statutes.php?statute=44-6406
• Neb. Rev. Stat. § 44-6408: https://nebraskalegislature.gov/laws/statutes.php?statute=44-6408
• Neb. Rev. Stat. § 44-6409 (maximum liability; excess over Med-Pay): https://nebraskalegislature.gov/laws/statutes.php?statute=44-6409
• Neb. Rev. Stat. § 44-6410: https://nebraskalegislature.gov/laws/statutes.php?statute=44-6410
• Neb. Rev. Stat. § 44-6411: https://nebraskalegislature.gov/laws/statutes.php?statute=44-6411
• Neb. Rev. Stat. § 44-6412 (subrogation; 30-day notice/substitution): https://nebraskalegislature.gov/laws/statutes.php?statute=44-6412
• Neb. Rev. Stat. § 44-6413: https://nebraskalegislature.gov/laws/statutes.php?statute=44-6413
• Neb. Rev. Stat. § 44-1536 (Act name and range): https://nebraskalegislature.gov/laws/statutes.php?statute=44-1536
• Neb. Rev. Stat. § 44-359 (attorney fees): https://nebraskalegislature.gov/laws/statutes.php?statute=44-359
• Neb. Rev. Stat. § 44-1539 (scope of unfair claims practice): https://nebraskalegislature.gov/laws/statutes.php?statute=44-1539
• Neb. Rev. Stat. § 44-1540 (unfair claims practices): https://nebraskalegislature.gov/laws/statutes.php?statute=44-1540
• Neb. Rev. Stat. § 25-205 (5-year SOL): https://nebraskalegislature.gov/laws/statutes.php?statute=25-205
• Neb. Rev. Stat. § 25-207 (underlying injury limitation): https://nebraskalegislature.gov/laws/statutes.php?statute=25-207
• Neb. Rev. Stat. § 25-21,185.09 (modified comparative fault): https://nebraskalegislature.gov/laws/statutes.php?statute=25-21,185.09
• Neb. Rev. Stat. § 25-901 (offer of judgment): https://nebraskalegislature.gov/laws/statutes.php?statute=25-901
• Neb. Rev. Stat. § 27-408 (compromise evidence): https://nebraskalegislature.gov/laws/statutes.php?statute=27-408
• Neb. Rev. Stat. § 45-103.02 (prejudgment interest): https://nebraskalegislature.gov/laws/statutes.php?statute=45-103.02
• Neb. Rev. Stat. § 45-104 (interest on specified contract obligations): https://nebraskalegislature.gov/laws/statutes.php?statute=45-104
• Neb. Rev. Stat. § 60-6,140 (following too closely): https://nebraskalegislature.gov/laws/statutes.php?statute=60-6,140
• Neb. Rev. Stat. § 60-6,179.01 (written communications on handheld devices): https://nebraskalegislature.gov/laws/statutes.php?statute=60-6,179.01
• Neb. Rev. Stat. § 60-6,185 (reasonable and prudent speed): https://nebraskalegislature.gov/laws/statutes.php?statute=60-6,185
• Neb. Rev. Stat. § 60-6,196 (driving under influence): https://nebraskalegislature.gov/laws/statutes.php?statute=60-6,196
• Neb. Rev. Stat. § 44-2403 (insolvent insurer definition): https://nebraskalegislature.gov/laws/statutes.php?statute=44-2403
• Millard Gutter Co. v. Shelter Mutual Insurance Co., 312 Neb. 606, 980 N.W.2d 420 (2022): https://www.nebraska.gov/apps-courts-epub/public/viewAdvanced?docId=N00008924PUB
• NJI2d Civ. 4.00, Appendix 5: https://nebraskajudicial.gov/sites/default/files/Ch6Art22App5.pdf
• Nebraska Dept. of Insurance: https://doi.nebraska.gov/
• Nebraska DOI — File a Complaint: https://doi.nebraska.gov/consumer/file-complaint