UM/UIM Demand Letter - New Hampshire

UM/UIM (UNINSURED/UNDERINSURED MOTORIST) DEMAND LETTER

State of New Hampshire

[LAW FIRM LETTERHEAD]

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

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

Date: [__/__/____]

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

Attention: [________________________________], [________________________________]
Re: UM/UIM POLICY LIMITS DEMAND — NEW HAMPSHIRE
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. EST

Dear [________________________________]:

I. INTRODUCTION AND NATURE OF DEMAND

This firm represents [________________________________] ("our client") in connection with a claim for [UNINSURED / UNDERINSURED] motorist benefits under New Hampshire law arising from a motor vehicle collision on [__/__/____]. This letter constitutes a formal demand for payment of the full UM/UIM policy limits of $[________________________________].

Our client's damages substantially exceed the available coverage from the at-fault driver. New Hampshire law mandates that UM/UIM coverage exist precisely to protect your own insured when the negligent party lacks sufficient coverage to make the injured person whole. See RSA 264:15; Pelissier v. GEICO Gen. Ins. Co., No. 2022-0714 (N.H. Oct. 25, 2024) (holding that UM/UIM coverage is designed "to place insured persons in the same position as if the offending motorist had adequate liability insurance").

II. NEW HAMPSHIRE UM/UIM LAW — CRITICAL PROVISIONS

A. Mandatory Equal-Limits Rule — RSA 264:15

New Hampshire law imposes a unique automatic equal-limits rule for UM/UIM coverage. Under RSA 264:15, when an insured elects to purchase liability insurance in an amount greater than the statutory minimum, the insured's uninsured motorist coverage automatically equals in amounts and limits the liability coverage elected — unless the insured affirmatively waives the additional UM/UIM coverage in writing. This is not optional; it is a statutory mandate.

The New Hampshire minimum liability limits under RSA 259:61 are:

• $25,000 per person / $50,000 per occurrence for bodily injury
• $25,000 for property damage

If [CARRIER SHORT NAME] issued a policy with liability limits above these minimums, and the declarations page does not reflect matching UM/UIM limits accompanied by a valid written waiver, [CARRIER SHORT NAME] is legally obligated to provide UM/UIM benefits at the same level as the liability coverage.

We hereby assert that our client's UM/UIM limits equal the liability limits on this policy pursuant to RSA 264:15.

B. Stacking of UM/UIM Coverage

New Hampshire permits inter-policy stacking of UM/UIM coverage across multiple vehicles listed on a single policy. Where multiple vehicles appear on a policy, each vehicle's UM/UIM limit may be aggregated (stacked), unless the insurer secured a valid written waiver of stacking consistent with RSA 264:15.

Stacking Analysis:

C. 2024 Pelissier Ruling — Contractual Limitations on UM/UIM Claims

The New Hampshire Supreme Court in Pelissier v. GEICO Gen. Ins. Co., No. 2022-0714 (N.H. Oct. 25, 2024), struck down a GEICO policy provision that imposed a contractual time limit requiring insureds to pursue UIM benefits before their cause of action had even accrued. Any similar limitation provision in this policy is unenforceable as contrary to the public policy underlying RSA 264:15.

D. Coverage Analysis

E. Coverage Trigger

For Uninsured Motorist (UM) Claims:

The tortfeasor qualifies as an "uninsured motor vehicle" under RSA 259:117 because:

☐ The tortfeasor carried no liability insurance at the time of the collision
☐ The tortfeasor's insurer has denied coverage
☐ The tortfeasor's insurer is insolvent
☐ The tortfeasor was a hit-and-run driver who has not been identified
☐ The tortfeasor's insurance limits are below the RSA 259:61 minimum requirements

For Underinsured Motorist (UIM) Claims:

The tortfeasor qualifies as an "underinsured motorist" because:

☐ The tortfeasor's liability limits of $[________________________________] are insufficient to fully compensate our client
☐ Our client has exhausted (or will exhaust) the tortfeasor's policy limits
☐ Our client's total damages exceed all available third-party coverage

III. THE COLLISION AND LIABILITY

A. Facts of the Collision

On [__/__/____], at approximately [____] [a.m. / p.m.], our client was [________________________________] at or near [________________________________], [________________________________], New Hampshire.

[________________________________________________________________________________________________
________________________________________________________________________________________________
________________________________________________________________________________________________]

B. Tortfeasor's Negligence

The tortfeasor, [________________________________], was negligent under New Hampshire law in the following respects:

☐ Failure to maintain proper lookout
☐ Failure to yield the right-of-way
☐ Following too closely in violation of RSA 265:16
☐ Excessive speed for conditions in violation of RSA 265:60
☐ Distracted driving (cell phone / other)
☐ Running a red light or stop sign in violation of RSA 265:30
☐ Improper lane change in violation of RSA 265:54
☐ Driving under the influence in violation of RSA 265-A:2
☐ Other: [________________________________]

C. Evidence of Liability

1. Police / Crash Report
[________________________________] Police Department / NH State Police Crash Report No. [________________________________], dated [__/__/____].

2. Witness Statements
[____] independent witness(es) observed the collision. Statements on file.

3. Physical Evidence
Point of impact, vehicle damage patterns, debris field, and [________________________________].

4. Expert Analysis
☐ [________________________________] has prepared an accident reconstruction report concluding [________________________________].

D. Comparative Fault Analysis — RSA 507:7-d

New Hampshire applies modified comparative fault with a 51% bar under RSA 507:7-d. A plaintiff may recover if his or her fault does not exceed that of the defendant(s) in the aggregate. Recovery is reduced proportionally by the plaintiff's percentage of fault and is barred entirely if the plaintiff is found 51% or more at fault.

Our client bears no comparative fault for this collision based on [________________________________]. Even if any fault were attributed to our client, it would be well below the 51% threshold that bars recovery.

IV. OUR CLIENT'S INJURIES AND TREATMENT

A. Injury Summary

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

Primary Diagnoses:

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

Emergency Treatment:
Our client was transported by [________________________________] to [________________________________] Hospital on [__/__/____] and received emergency treatment for [________________________________].

B. Treatment Timeline

C. Current Condition and Prognosis

[________________________________________________________________________________________________
________________________________________________________________________________________________]

D. Permanent Impairment

Impairment rating assessed by [________________________________], M.D., on [__/__/____], using AMA Guides to Evaluation of Permanent Impairment, [____] Edition.

V. DAMAGES

A. Medical Expenses

Past Medical Expenses:

Future Medical Expenses (Present Value):

Future medical expenses supported by life care plan prepared by [________________________________] dated [__/__/____].

B. Lost Income / Lost Earning Capacity

Past Lost Income:

Our client [________________________________] at a rate of $[____________] per [day / week / year] and was unable to work from [__/__/____] through [__/__/____].

Total Past Lost Income: $[____________]

Documentation: ☐ Employer letter    ☐ Pay stubs    ☐ Tax returns    ☐ CPA report

Future Lost Earning Capacity:

Our client's injuries have permanently impaired his/her earning capacity. According to vocational rehabilitation expert [________________________________], our client has sustained:

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

C. Pain and Suffering / Non-Economic Damages

Our client has endured significant physical pain, emotional suffering, loss of enjoyment of life, and disruption of daily activities. [________________________________________________________________________________________________
________________________________________________________________________________________________]

Pain and Suffering Valuation: $[____________]

D. Loss of Consortium (if applicable)

The injuries have substantially impaired our client's relationship with his/her spouse, [________________________________], resulting in compensable consortium damages.

Loss of Consortium: $[____________]

E. Total Damages Summary

VI. SETTLEMENT WITH TORTFEASOR'S INSURER AND CONSENT TO SETTLE

A. Settlement Status

We ☐ have reached / ☐ are pursuing a settlement with the tortfeasor's liability carrier, [________________________________], for the tortfeasor's policy limits of $[____________].

B. Consent to Settle — Required Notice

NOTICE TO [CARRIER SHORT NAME]: Pursuant to New Hampshire law and your policy terms, we formally request your written consent to settle with the tortfeasor's carrier for its policy limits. Under NH law, your failure to timely consent may waive your subrogation rights against the tortfeasor. Under Pelissier and RSA 264:15, you may not condition UIM benefits upon our client's failure to have timely pursued your consent before the UIM claim accrued.

Please provide written consent or denial within [____] days of this letter.

VII. DEMAND FOR UM/UIM BENEFITS

A. Calculation of UIM Benefits Due

B. Policy Limits Demand

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

Our client's total damages of $[____________] vastly exceed the combined coverage available. This is a clear policy limits case. The at-fault driver's coverage of $[____________] is wholly insufficient. Our client purchased UM/UIM coverage for exactly this situation, and New Hampshire law requires [CARRIER SHORT NAME] to honor that coverage.

VIII. NH-SPECIFIC BAD FAITH WARNING

A. Insurer's Duty to Its Own Insured

[CARRIER SHORT NAME] owes our client — its own insured — the implied duty of good faith and fair dealing that exists in every New Hampshire insurance contract. Lawton v. Great Southwest Fire Ins. Co., 392 A.2d 576 (N.H. 1978). That contractual duty requires [CARRIER SHORT NAME] to:

• Conduct a prompt, thorough, and objective investigation of this claim
• Evaluate the claim fairly and in good faith
• Pay all amounts reasonably owed under the policy without requiring litigation
• Refrain from placing its own financial interests above those of its insured

B. Statutory Obligations — RSA 417:4

The following constitutes a list of unfair claims settlement practices prohibited by RSA 417:4 that [CARRIER SHORT NAME] must avoid in handling this claim:

• Misrepresenting pertinent facts or policy provisions relating to coverages at issue
• Failing to acknowledge and act reasonably promptly upon communications
• Failing to adopt and implement standards for prompt, reasonable investigation
• Refusing to pay claims without conducting a reasonable investigation
• Failing to attempt in good faith to effectuate prompt, fair, and equitable settlement when liability has become reasonably clear
• Compelling litigation to recover amounts due by offering substantially less than ultimately recovered
• Attempting to settle a claim for less than a reasonable person would believe is owed

C. New Hampshire Private Right of Action — RSA 417:19

Important NH-Specific Limitation: Unlike some states where insureds may immediately sue for bad faith independently, New Hampshire's private right of action under RSA 417:19 requires that the Insurance Commissioner first issue a finding of violation or a cease-and-desist order before a private lawsuit may be brought under Chapter 417. However, our client retains the right to:

1. File a complaint with the New Hampshire Insurance Department (NHID), which triggers an investigation and may result in a finding under RSA 417:6 or RSA 417:12. The NHID must act within 120 days or the practice is deemed not to be a violation.
2. Sue in contract for breach of the implied covenant of good faith and fair dealing.
3. Pursue all consequential damages flowing from [CARRIER SHORT NAME]'s breach.
4. Recover attorneys' fees and costs upon prevailing under RSA 417:19 if a prior NHID finding exists.

D. Punitive Damages — Critical NH-Specific Note

New Hampshire is one of only a handful of states that broadly prohibits punitive damages. Under RSA 507-D:1, "no punitive damages shall be awarded in any action, unless otherwise provided by statute." This prohibition has been in effect since July 1, 1986. There is no exception for insurance bad faith in New Hampshire, and courts have consistently applied this prohibition. Our client does not seek punitive damages; however, [CARRIER SHORT NAME] should not mistake this limitation for a license to handle this claim in bad faith. The full range of consequential damages, emotional distress damages, and attorney's fees (upon a prior NHID finding) remain available.

E. Prejudgment Interest — RSA 336:1

Under RSA 336:1, the annual rate of interest on judgments (including prejudgment interest) is set each year by the State Treasurer as the prevailing 26-week U.S. Treasury bill discount rate plus 2 percentage points. The applicable rate for [____] is [____]%. This interest runs from the date of demand on all sums unreasonably withheld.

IX. ARBITRATION CONSIDERATIONS

A. Policy Arbitration Clause

The policy ☐ contains / ☐ does not contain an arbitration clause for UM/UIM disputes.

[If applicable: The arbitration clause states: "[________________________________]." Arbitration would be conducted under [________________________________] rules before [____] neutral arbitrator(s) in [________________________________], New Hampshire.]

B. Arbitration Demand (If Applicable)

If [CARRIER SHORT NAME] fails to accept this demand, this letter constitutes notice of our intent to invoke arbitration or to file suit in the New Hampshire Superior Court, Hillsborough / Merrimack / Rockingham / Strafford / [________________________________] County.

X. STATUTE OF LIMITATIONS WARNING

Under RSA 508:4, the statute of limitations for personal injury and contract claims in New Hampshire is three (3) years from the date of the act or omission, or from when the injury and its causal relationship were or reasonably should have been discovered. The statute of limitations on our client's claims expires on approximately [__/__/____]. We will file suit before that date if this claim is not resolved.

Under Pelissier v. GEICO, any policy provision attempting to shorten the period in which our client must file a UIM claim is unenforceable as against the public policy of RSA 264:15.

XI. RESPONSE DEADLINE

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

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

1. We will invoke arbitration (if required by policy) or file suit in New Hampshire Superior Court
2. We will pursue all available contract and consequential damages under New Hampshire law
3. We will file a formal complaint with the New Hampshire Insurance Department at:

New Hampshire Insurance Department
Consumer Services Division
21 South Fruit Street, Suite 14
Concord, NH 03301
Phone: (603) 271-2261 / (800) 852-3416
Website: www.insurance.nh.gov

4. We reserve all rights, including to allege violations of RSA 417:4 and to seek an NHID finding that creates the predicate for a private action under RSA 417:19

XII. DOCUMENT PRESERVATION NOTICE

This letter serves as formal notice to preserve all documents, claim files, reserve information, communications, notes, activity logs, quality assurance reviews, and electronically stored information (ESI) related to this claim and this insured. Failure to preserve such materials may result in adverse inference instructions or other sanctions.

XIII. CONCLUSION

Our client purchased UM/UIM coverage in good faith, paid premiums for years, and is now injured through no fault of his/her own. New Hampshire law exists specifically to require [CARRIER SHORT NAME] to step into the shoes of the uninsured/underinsured driver and make our client whole. We urge [CARRIER SHORT NAME] to honor that legal obligation by accepting this demand.

Respectfully submitted,

[________________________________]

By: _______________________________________________
[________________________________]
NH Bar No. [________________________________]
[________________________________]
[________________________________], NH [________]
Tel: [________________________________]
Email: [________________________________]

Counsel for [________________________________]

ENCLOSURES:

• Policy declarations page and UM/UIM coverage provisions
• Police / NH State Police crash report
• All medical records and itemized bills
• Photographs of scene and vehicles
• Witness statements
• Expert reports (life care plan, accident reconstruction, vocational)
• Proof of tortfeasor's policy limits (coverage verification letter)
• Subrogation / consent-to-settle request

CC:

• [________________________________] (Client)
• [________________________________] (Tortfeasor's Carrier — consent to settle)

NEW HAMPSHIRE UM/UIM QUICK REFERENCE

SOURCES AND REFERENCES

• RSA 264:15 — Uninsured/Hit-and-Run Motor Vehicle Coverage: https://law.justia.com/codes/new-hampshire/title-xxi/chapter-264/section-264-15/
• RSA 259:61 — Motor Vehicle Liability Policy: https://gc.nh.gov/rsa/html/XXI/259/259-61.htm
• RSA 259:117 — Definition of Uninsured Motor Vehicle: https://law.justia.com/codes/new-hampshire/title-xxi/chapter-259/section-259-117/
• RSA 507:7-d — Comparative Fault: https://law.justia.com/codes/new-hampshire/title-lii/chapter-507/section-507-7-d/
• RSA 507-D — Punitive Damages Prohibition: https://gc.nh.gov/rsa/html/LII/507/507-mrg.htm
• RSA 508:4 — Statute of Limitations: https://law.justia.com/codes/new-hampshire/title-lii/chapter-508/section-508-4/
• RSA 417:4 — Unfair Claims Settlement Practices: https://law.justia.com/codes/new-hampshire/title-xxxvii/chapter-417/section-417-4/
• RSA 417:19 — Private Right of Action: https://law.justia.com/codes/new-hampshire/title-xxxvii/chapter-417/section-417-19/
• RSA 336:1 — Interest Rate: https://gc.nh.gov/rsa/html/xxxi/336/336-1.htm
• Pelissier v. GEICO Gen. Ins. Co. (N.H. 2024): https://law.justia.com/cases/new-hampshire/supreme-court/2024/2022-0714.html
• Lawton v. Great Southwest Fire Ins. Co., 392 A.2d 576 (N.H. 1978): https://case-law.vlex.com/vid/lawton-v-great-southwest-891490274
• NH Insurance Department — Complaint Filing: https://www.insurance.nh.gov/consumers/filing-complaint
• NH Insurance Department — Auto Insurance FAQ: https://www.nh.gov/insurance/pc/faq.htm
• Insurance Journal — NH Supreme Court / GEICO 2024 ruling: https://www.insurancejournal.com/news/east/2024/11/14/801109.htm