UM/UIM Demand Letter - Nebraska

UM/UIM (UNINSURED/UNDERINSURED MOTORIST) DEMAND LETTER

State of Nebraska

[LAW FIRM LETTERHEAD]

PRIVILEGED AND CONFIDENTIAL
SETTLEMENT COMMUNICATION — FOR RESOLUTION PURPOSES ONLY
PROTECTED UNDER NEB. REV. R. EVID. 408 AND F.R.E. 408

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, every motor vehicle liability policy issued or delivered in Nebraska must include uninsured and underinsured motorist coverage. The statutory minimum limits are:

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

The statute requires the named insured to be given the opportunity to purchase higher limits up to $100,000 per person / $300,000 per occurrence. The limits applicable to this claim are $[________________________________] per person / $[________________________________] per occurrence.

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. UIM Exhaustion and Consent-to-Settle Obligations

Nebraska law requires an insured to exhaust the tortfeasor's available liability limits before UIM benefits are triggered. Our client has [exhausted/agreed to exhaust] the tortfeasor's limits of $[________________________________]. Pursuant to policy terms and Nebraska law, we hereby formally notify the Company and request consent to settle with the tortfeasor's carrier. Please confirm written consent within [____] days so that settlement proceeds are not jeopardized.

If the Company wishes to preserve its subrogation rights by paying the tortfeasor's limits directly, we request notice of that election within the same period. Failure to respond constitutes consent to settle. See Neb. Rev. Stat. § 44-6413.

D. Applicable Statute of Limitations

Nebraska's statute of limitations for actions on written insurance contracts is five (5) years under Neb. Rev. Stat. § 25-205, running from the date of breach or denial. This demand is made well within that period. The date of loss was [__/__/____] and the Company's last denial/delay was [__/__/____].

III. POLICY COVERAGE SUMMARY

IV. COVERAGE TRIGGER

A. For Uninsured Motorist (UM) Claims

The tortfeasor qualifies as an "uninsured motorist" under Neb. Rev. Stat. § 44-6409 because (check all that apply):

☐ The tortfeasor carried no liability insurance at the time of the collision
☐ The tortfeasor's insurer denied coverage under the liability policy
☐ The tortfeasor's insurer is insolvent or placed in receivership
☐ The tortfeasor was a hit-and-run driver who cannot be identified
☐ The tortfeasor's liability limits are below Nebraska's $25,000/$50,000 statutory minimums
☐ Other: [________________________________]

B. For Underinsured Motorist (UIM) Claims

The tortfeasor qualifies as an "underinsured motorist" because:

☐ The tortfeasor's liability limits of $[________________________________] have been (or will be) exhausted
☐ Our client's compensable damages exceed the tortfeasor's total available liability limits
☐ The Company has been provided written notice of our intent to settle with the tortfeasor's carrier

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 proper lookout — Neb. Rev. Stat. § 60-6,166
☐ 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
☐ Distracted driving / use of handheld device — 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

Nebraska follows modified comparative fault with a 50% bar. Under Neb. Rev. Stat. § 25-21,185.09, a claimant is barred from recovery only if his or her comparative fault equals or exceeds 50%. Our client's fault is 0% [or [____]%], well below the statutory bar. The evidence will demonstrate that the tortfeasor bears sole or predominant responsibility for this collision.

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 law allows recovery for non-economic damages including past and future physical pain and suffering, mental anguish, and loss of enjoyment of life. See NJI2d Civ. 4.01.

[________________________________________________________________________________________________
________________________________________________________________________________________________
________________________________________________________________________________________________]

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). Accordingly, the maximum UIM recovery is the applicable single-vehicle policy limit of $[________________________________].

IX. BAD FAITH WARNING UNDER NEBRASKA LAW

[________________________________] owes our client — its own insured — the implied covenant of good faith and fair dealing. Nebraska recognized the tort of first-party bad faith in Braesch v. Union Ins. Co., 237 Neb. 44, 57, 464 N.W.2d 769, 777 (1991). The two-part standard, reaffirmed in LeRette v. American Medical Sec., Inc., 270 Neb. 545, 705 N.W.2d 41 (2005), requires a claimant to prove:

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.

Nebraska courts recognize that if a claim is not "fairly debatable," the Company cannot rely on a genuine dispute defense to escape bad faith liability. This claim is not fairly debatable: liability is established by law enforcement findings, witness accounts, and physical evidence. The damages are documented by treating physicians and bills in excess of $[________________________________].

Attorney Fees Under Neb. Rev. Stat. § 44-359: If the Company is adjudged liable on this policy claim, the court shall award our client a reasonable attorney's fee as part of taxable costs. This fee award is mandatory, not discretionary. Any offer or tender less than the amount ultimately recovered will eliminate the Company's ability to avoid this fee award.

NDOI Complaint: Failure to respond reasonably to this demand may constitute a violation of Neb. Rev. Stat. § 44-1540 (unfair claims settlement practices). We will file a complaint with the Nebraska Department of Insurance (toll-free: 877-564-7323; P.O. Box 95087, Lincoln, NE 68509-5087; online: doi.nebraska.gov) if this matter is not promptly resolved.

Important Note on Punitive Damages: Nebraska's Constitution and public policy generally do not permit punitive damages in civil actions. However, if bad faith is proven, our client may recover all consequential economic damages and emotional distress damages proximately caused by the Company's bad faith conduct, in addition to contract benefits. Neb. Rev. Stat. § 44-359 attorney fees further shift the economic calculus in favor of resolution.

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 under Braesch and LeRette;
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 under Neb. Rev. Stat. § 45-103.02 from the date the loss became liquidated.

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. § 44-6408: https://nebraskalegislature.gov/laws/statutes.php?statute=44-6408
• Neb. Rev. Stat. § 44-6410: https://nebraskalegislature.gov/laws/statutes.php?statute=44-6410
• Neb. Rev. Stat. § 44-6411: https://law.justia.com/codes/nebraska/chapter-44/statute-44-6411/
• Neb. Rev. Stat. § 44-6413: https://law.justia.com/codes/nebraska/chapter-44/statute-44-6413/
• Neb. Rev. Stat. § 44-359 (attorney fees): https://nebraskalegislature.gov/laws/statutes.php?statute=44-359
• 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. § 25-21,185.09 (modified comparative fault): https://nebraskalegislature.gov/laws/statutes.php?statute=25-21,185.09
• Braesch v. Union Ins. Co., 237 Neb. 44, 464 N.W.2d 769 (1991): https://law.justia.com/cases/nebraska/supreme-court/1991/772-4.html
• LeRette v. American Medical Sec., Inc., 270 Neb. 545, 705 N.W.2d 41 (2005): https://law.justia.com/cases/nebraska/supreme-court/2005/724.html
• Nebraska Dept. of Insurance: https://doi.nebraska.gov/
• Nebraska DOI — File a Complaint: https://doi.nebraska.gov/consumer/consumer-assistance
• Nebraska Judgment Interest Rate (current): https://nebraskajudicial.gov/rules/administrative-policies-schedules/judgment-interest-rate
• UM/UIM Stacking Overview: https://www.hauptman-obrien.net/blog/nebraska-um-uim-insurance-requirements/