UM/UIM Demand Letter - Wyoming

UM/UIM (UNINSURED/UNDERINSURED MOTORIST) DEMAND LETTER

State of Wyoming

[LAW FIRM LETTERHEAD]

PRIVILEGED AND CONFIDENTIAL
SETTLEMENT COMMUNICATION — FOR RESOLUTION PURPOSES ONLY
PROTECTED UNDER W.R.E. 408 AND WYOMING COMMON LAW

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

Date: [__/__/____]

[________________________________]
[________________________________] (UM/UIM Claims Department)
[________________________________], WY [____]

Attention: [________________________________], [________________________________]
Re: FORMAL UM/UIM POLICY LIMITS DEMAND — WYOMING LAW
Insured/Claimant: [________________________________]
Policy Number: [________________________________]
Claim Number: [________________________________]
Date of Loss: [__/__/____]
UM/UIM Policy Limits: $[________________________________]
Tortfeasor: [________________________________]
Tortfeasor's Carrier: [________________________________]
Tortfeasor's Liability Limits: $[________________________________]
Demand Expiration Deadline: [__/__/____] at 5:00 p.m. Mountain Time

Dear [________________________________]:

I. INTRODUCTION AND NATURE OF DEMAND

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

Our client's documented damages substantially exceed all available liability coverage. Wyoming law requires insurers to offer UM/UIM coverage to protect their own insureds when negligent third parties lack adequate coverage. Wyo. Stat. § 31-10-101. Your company made that promise. This demand calls on you to honor it.

II. WYOMING UM/UIM LEGAL FRAMEWORK

A. Statutory Requirement to Offer UM/UIM Coverage

Under Wyo. Stat. § 31-10-101, every automobile liability policy issued or delivered in Wyoming must include UM coverage in limits at least equal to the minimum required under the Wyoming Motor Vehicle Safety Responsibility Act (Wyo. Stat. § 31-9-102(a): $25,000 per person / $50,000 per accident for bodily injury), unless the named insured rejects such coverage in writing. The policy at issue was not rejected; UM/UIM coverage applies.

B. Wyoming Minimum Liability Requirements (Wyo. Stat. § 31-9-102(a))

Wyoming's mandatory minimum limits are:

• $25,000 per person / $50,000 per accident (bodily injury or death)
• $20,000 per accident (property damage)

C. Stacking Under Wyoming Law

Wyoming does not automatically permit stacking of UM/UIM benefits across multiple vehicles or policies. However, where a claimant has paid separate premiums for separate policies each containing UM/UIM limits, those limits will be stacked under Wyoming law unless the policies contain clear and unambiguous anti-stacking language. Broderick v. Dairyland Ins. Co., 2012 WY (Wyo. 2012). Ambiguities in policy language are construed in favor of the insured.

D. Coverage Details Under This Policy

E. Coverage Trigger

☐ Uninsured Motorist (UM) Claim:

The tortfeasor qualifies as an "uninsured motorist" under Wyo. Stat. § 31-10-101 because:

☐ The tortfeasor carried no liability insurance at the time of the collision
☐ The tortfeasor's insurer has disclaimed coverage
☐ The tortfeasor's insurer is insolvent
☐ The tortfeasor fled the scene and cannot be identified (hit-and-run)
☐ The tortfeasor's limits are below Wyoming statutory minimums

☐ Underinsured Motorist (UIM) Claim:

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 liability policy
☐ Our client's total damages of $[________________________________] exceed all available liability coverage

III. THE COLLISION AND LIABILITY

A. Facts of the Collision

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

[________________________________]
[________________________________]
[________________________________]
(Describe the collision in detail: direction of travel, road conditions, weather, point of impact, sequence of events.)

B. Tortfeasor's Negligence Under Wyoming Law

[________________________________] was negligent under Wyoming law in the following respects:

☐ Failure to maintain proper lookout
☐ Failure to yield right-of-way — Wyo. Stat. § 31-5-205 et seq.
☐ Following too closely — Wyo. Stat. § 31-5-215
☐ Excessive or unsafe speed — Wyo. Stat. § 31-5-301 et seq.
☐ Distracted driving
☐ Failure to obey a traffic control device — Wyo. Stat. § 31-5-101 et seq.
☐ Improper lane change — Wyo. Stat. § 31-5-209
☐ Driving under the influence — Wyo. Stat. § 31-5-233
☐ [________________________________]

C. Evidence of Liability

1. Law Enforcement Report
[________________________________] Police/Sheriff's Department, Report No. [________________________________], dated [__/__/____]. The investigating officer [________________________________] concluded [________________________________].

2. Independent Witness Statements
[____] independent witnesses observed the collision and confirmed the tortfeasor's fault:

• [________________________________] (Contact: [________________________________])
• [________________________________] (Contact: [________________________________])

3. Physical and Electronic Evidence
Point-of-impact analysis, vehicle damage patterns, airbag control module data (if available), dashcam footage, and debris field establish the mechanics of the collision.

4. Expert Analysis
☐ [________________________________], accident reconstruction expert, has issued a written opinion concluding [________________________________].

D. Comparative Fault Analysis — Wyo. Stat. § 1-1-109

Wyoming applies modified comparative fault with a 51% bar. Under Wyo. Stat. § 1-1-109, a claimant whose fault does not exceed 50% of the total fault may recover, with any recovery reduced proportionally. Our client bears no contributory fault for this collision. [Alternatively: Our client bears at most [____]% comparative fault, well below the 51% bar, and is entitled to a recovery reduced only by that percentage.]

IV. OUR CLIENT'S INJURIES AND MEDICAL TREATMENT

A. Injury Summary

As a direct and proximate result of this collision, our client sustained the following injuries, confirmed by objective diagnostic testing:

Primary Injuries:

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

Secondary/Consequential Injuries:

• [________________________________]
• [________________________________]

B. Treatment Chronology

C. Current Condition and Prognosis

[________________________________]
(Describe current functional limitations, pain levels, restrictions on daily activities, work capacity, and treating physician's prognosis for recovery or permanency.)

D. Permanent Impairment (AMA Guides, 6th Ed.)

Permanent impairment was assessed by [________________________________], M.D., on [__/__/____].

V. DAMAGES

A. Past Medical Expenses

B. Future Medical Expenses (Present Value)

A life care plan prepared by [________________________________] on [__/__/____] projects the following future medical needs:

C. Lost Income and Earning Capacity

Past Lost Wages: $[____________]
(Period: [__/__/____] through [__/__/____]; rate of pay: $[____________]/[☐ hour / ☐ week / ☐ year])

Future Lost Earning Capacity (Present Value): $[____________]
(Vocational analysis by [________________________________], dated [__/__/____], projects permanent reduction in earning capacity based on the following: [________________________________].)

D. Non-Economic Damages

Wyoming does not cap non-economic damages in personal injury cases (unlike some states). Our client is entitled to compensation for:

• Past Pain and Suffering: [________________________________]
• Future Pain and Suffering: [________________________________]
• Physical Impairment and Disfigurement: [________________________________]
• Loss of Enjoyment of Life: [________________________________]
• Loss of Consortium (if applicable): [________________________________]

Non-economic damages are estimated at $[________________________________], supported by [________________________________].

E. Total Damages Summary

VI. TORTFEASOR'S LIABILITY INSURANCE — EXHAUSTION OR INSUFFICIENCY

A. Settlement Status With Tortfeasor's Carrier

☐ We have reached a settlement with [________________________________] (tortfeasor's insurer) for the tortfeasor's policy limits of $[____________], which represents full exhaustion of the available liability coverage.

☐ We are pursuing settlement with the tortfeasor's carrier and anticipate exhausting the policy limits of $[____________] prior to or concurrently with this UIM demand.

B. Consent to Settle — Notice to Your Company

Pursuant to Wyo. Stat. § 31-10-101 and the terms of your policy, we hereby provide notice of our intent to settle with the tortfeasor's liability carrier and request your written consent.

Please respond in writing within [____] days of this letter with either:
(a) Written consent to settle; or
(b) Your company's decision to preserve its subrogation rights by advancing the tortfeasor's limits directly to our client.

Failure to timely respond may result in a waiver of subrogation rights under Wyoming law.

VII. FORMAL DEMAND FOR UM/UIM BENEFITS

A. UIM Offset Calculation

(The foregoing is presented on an offset/reduction basis consistent with Wyoming law. Anti-stacking and offset provisions in the policy are preserved for further discussion if applicable.)

B. Policy Limits Demand

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

Our client's documented damages of $[________________________________] vastly exceed all available coverage. This is a clear policy limits case. Our client made premium payments in reliance on this coverage. Wyoming law expects your company to honor that bargain.

VIII. BAD FAITH WARNING — WYOMING LAW

Your company owes our client, its own insured, a common law duty of good faith and fair dealing in the handling of this UM/UIM claim.

A. Controlling Wyoming Bad Faith Standard

The Wyoming Supreme Court established the first-party bad faith tort in McCullough v. Golden Rule Ins. Co., 789 P.2d 855 (Wyo. 1990). To succeed on a bad faith claim, the insured must prove:

1. The absence of a reasonable basis for denying or delaying payment of the policy benefits claimed; and
2. The insurer's knowledge or reckless disregard of the lack of a reasonable basis for its conduct.

The test is objective: whether a reasonable insurer under the same circumstances would have denied or delayed the claim. State Farm Mut. Auto. Ins. Co. v. Shrader, 882 P.2d 813 (Wyo. 1994). Importantly, Wyoming courts have recognized that even where a claim may be "fairly debatable" as to quantum, an insurer may still be liable for bad faith through the manner in which it investigates and handles the claim. Id.

B. Unfair Claims Settlement Practices — Wyo. Stat. § 26-13-124

While Wyo. Stat. § 26-13-124 does not create a private right of action (Herrig v. Herrig, 844 P.2d 487 (Wyo. 1992)), violations of its standards are admissible as evidence of bad faith under Wyoming common law. The statute prohibits:

☐ Failing to acknowledge and act reasonably promptly on claim communications
☐ Failing to adopt and implement reasonable investigation standards
☐ Refusing to pay claims without a reasonable investigation
☐ Failing to attempt good faith settlement when liability is reasonably clear
☐ Compelling litigation by offering substantially less than amounts owed
☐ Failing to provide a reasonable explanation for denial or underpayment

C. Remedies Available Under Wyoming Bad Faith Law

If your company acts in bad faith in handling this UM/UIM claim, our client will pursue:

• Full policy benefits plus pre- and post-judgment interest
• Consequential damages flowing from the bad faith denial/delay
• Emotional distress damages caused by the insurer's conduct
• Punitive damages upon proof by clear and convincing evidence of willful and wanton conduct (no statutory cap in Wyoming, though courts exercise control)
• Attorney's fees under Wyo. Stat. § 26-15-124 (if applicable to the liability context) and under equitable principles

D. Regulatory Complaint

Non-compliance with this demand may result in a formal complaint filed with the Wyoming Department of Insurance, 106 E. 6th Avenue, Cheyenne, WY 82002, telephone (307) 777-7401.

IX. ARBITRATION

A. Policy Arbitration Clause

The policy [☐ contains / ☐ does not contain] a binding arbitration clause for UM/UIM disputes.

[If arbitration clause exists, insert text: "Pursuant to the arbitration provision at Policy Section [____], and consistent with Wyoming law, if your company declines this demand, we hereby give notice of our intent to invoke binding arbitration. Please identify your arbitrator within [____] days."]

B. Litigation Alternative

If arbitration is unavailable or inapplicable, and your company declines this demand, we will file suit in the District Court of [________________________________] County, Wyoming, asserting claims for breach of contract and tortious bad faith.

X. STATUTE OF LIMITATIONS NOTICE

This demand is presented well within Wyoming's applicable limitation periods:

• Breach of insurance contract: 10 years from date of loss — Wyo. Stat. § 1-3-105(a)(i)
• Bad faith tort: 4 years from date insurer knew or should have known of the claim — Wyo. Stat. § 1-3-105(a)(iv)(C)

The date of loss was [__/__/____]. All claims remain timely.

XI. RESPONSE DEADLINE AND CONSEQUENCES

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

If your company fails to tender the full UM/UIM policy limits by the deadline:

1. We will invoke the arbitration clause (if applicable) or file suit in Wyoming District Court for breach of contract and bad faith
2. We will seek all available bad faith damages, including punitive damages, under Wyoming common law
3. We will file a formal complaint with the Wyoming Department of Insurance at 106 E. 6th Avenue, Cheyenne, WY 82002
4. This demand will be withdrawn and we will seek a jury verdict exceeding the policy limits

XII. CONCLUSION

This claim presents clear liability, objectively serious and permanent injuries, and documented damages that vastly exceed the available coverage. Your company has an opportunity to resolve this matter fairly and fully — to make good on the promise it made to its own insured under Wyoming law.

We urge [________________________________] to carefully review the enclosed documentation, conduct a thorough and objective investigation, and tender the full policy limits on or before the deadline stated above.

Respectfully submitted,

[________________________________]

By: ___________________________________
[________________________________], Esq.
Wyoming Bar No. [____]
[________________________________]
[________________________________], WY [____]
Tel: [________________________________]
Fax: [________________________________]
Email: [________________________________]

Counsel for [________________________________]

ENCLOSURES:

☐ Policy declarations page (full policy period)
☐ UM/UIM coverage endorsements and provisions
☐ Written rejection of UM/UIM coverage (if applicable — confirm none exists)
☐ Law enforcement crash report (Report No. [________________________________])
☐ Photographs of scene and vehicle damage
☐ Complete medical records and bills
☐ Life care plan / future medical cost projection
☐ Wage/income loss documentation
☐ Vocational evaluation (if applicable)
☐ Expert accident reconstruction report (if applicable)
☐ Tortfeasor's declarations page confirming limits

CC:

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

WYOMING UM/UIM LAW QUICK REFERENCE

SOURCES AND REFERENCES

• Wyo. Stat. § 31-10-101 — Required UM/UIM Coverage; Rejection: https://law.justia.com/codes/wyoming/title-31/chapter-10/section-31-10-101/
• Wyo. Stat. § 31-4-103 — Failure to Maintain Liability Coverage: https://law.justia.com/codes/wyoming/title-31/chapter-4/section-31-4-103/
• Wyo. Stat. § 26-13-124 — Unfair Claims Settlement Practices: https://law.justia.com/codes/wyoming/title-26/chapter-13/article-1/section-26-13-124/
• McCullough v. Golden Rule Ins. Co., 789 P.2d 855 (Wyo. 1990): https://law.justia.com/cases/wyoming/supreme-court/1990/122383.html
• State Farm Mut. Auto. Ins. Co. v. Shrader, 882 P.2d 813 (Wyo. 1994): https://law.justia.com/cases/wyoming/supreme-court/1994/123072.html
• Herrig v. Herrig, 844 P.2d 487 (Wyo. 1992): https://law.justia.com/cases/wyoming/supreme-court/1992/122987.html
• Wyoming Department of Insurance: https://doi.wyo.gov/
• Wyoming UM/UIM Coverage — Hirst Applegate: https://hirstapplegate.com/wyoming-uninsured-motorist-coverages/
• ALFA International — Wyoming Insurance Law Compendium: https://www.alfainternational.com/compendium/insurance-law/wyoming/