UM/UIM Demand Letter - Wyoming

UM/UIM (UNINSURED/UNDERINSURED MOTORIST) DEMAND LETTER

State of Wyoming

[LAW FIRM LETTERHEAD]

SETTLEMENT COMMUNICATION — FOR RESOLUTION PURPOSES ONLY
W.R.E. 408 MAY LIMIT ADMISSIBILITY FOR SPECIFIED PURPOSES

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 available liability coverage. Wyoming law requires uninsured-motorist bodily-injury coverage unless rejected under Wyo. Stat. § 31-10-101. Wyoming does not statutorily require underinsured-motorist coverage; any UIM protection arises from the policy. This demand calls on your company to honor the coverage actually purchased.

II. WYOMING UM/UIM LEGAL FRAMEWORK

A. Statutory Uninsured-Motorist Coverage

Under Wyo. Stat. § 31-10-101, an automobile liability policy delivered or issued for delivery in Wyoming for a vehicle registered or principally garaged in Wyoming must provide uninsured-motorist bodily-injury coverage at the financial-responsibility limits in Wyo. Stat. § 31-9-102(a)(xi), unless the named insured rejects the coverage. The statute does not mandate UIM coverage, stacking, consent-to-settle procedures, or limits matching the policy's liability limits.

For this claim:

☐ Statutory UM coverage was not rejected
☐ The policy expressly provides UIM coverage
☐ The scope and limits of UIM coverage are disputed and require policy interpretation

B. Wyoming Financial-Responsibility Limits — § 31-9-102(a)(xi)

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. UIM Stacking and Liability Offset

Wyoming generally permits aggregation of UM/UIM coverage under separate policies for which separate premiums were paid unless the policy clearly and unambiguously precludes stacking in language an ordinary insured can understand. Aaron v. State Farm Mutual Automobile Insurance Co., 2001 WY 112, ¶ 12, 34 P.3d 929. When multiple UIM policies apply, the tortfeasor's liability payment is credited once and allocated pro rata among the applicable policies rather than deducted in full from every policy. Id. ¶¶ 16-17.

D. Coverage Details Under This Policy

E. Coverage Trigger

☐ Uninsured Motorist (UM) Claim:

The tortfeasor qualifies as uninsured under the policy because:

☐ The tortfeasor carried no liability insurance at the time of the collision
☐ The tortfeasor's insurer denied or disclaimed coverage within the policy definition
☐ The tortfeasor's insurer is insolvent within the policy definition
☐ The tortfeasor fled the scene and cannot be identified (hit-and-run)
☐ [OTHER POLICY DEFINITION: __________________________________]

☐ Underinsured Motorist (UIM) Claim:

Because Wyoming has no statutory UIM definition, the policy controls. The tortfeasor qualifies as underinsured because:

☐ The tortfeasor satisfies the policy's UIM definition: [________________________________]
☐ Any policy exhaustion requirement has been or will be satisfied: [________________________________]
☐ The applicable UIM limits and offset language provide net coverage of $[________________________________]

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. §§ 31-5-220 to -223, as applicable
☐ Following too closely — Wyo. Stat. § 31-5-210
☐ Excessive or unsafe speed — Wyo. Stat. § 31-5-301
☐ Electronic messaging while driving — Wyo. Stat. § 31-5-237
☐ Failure to obey a traffic-control device — Wyo. Stat. § 31-5-402
☐ 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 recovery barred only above 50%. 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, below the statutory 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 Constitution article 10, § 4(a) prohibits legislation limiting the amount of damages recoverable for causing personal injury or death. Subject to proof and any otherwise applicable law, our client seeks 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. Notice of Proposed Settlement and Policy Conditions

To preserve all rights under the policy, we provide notice of the proposed settlement and request written consent to settle to the extent the policy requires it. Wyo. Stat. § 31-10-101 does not itself establish a consent, advance-payment, or waiver procedure.

Please respond in writing within [____] days and identify every policy provision on which your response relies.

Our client will not execute a release until counsel has evaluated the policy's notice, consent, exhaustion, and subrogation provisions.

VII. FORMAL DEMAND FOR UM/UIM BENEFITS

A. UIM Offset Calculation

The demand should not exceed the lesser of uncompensated damages and net available UIM coverage. For multiple applicable policies, Aaron allocates the tortfeasor payment pro rata rather than allowing a duplicative full offset against each policy. 2001 WY 112, ¶¶ 16-17.

B. Policy Limits Demand

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

Our client's uncompensated damages of $[________________________________] exceed net available UM/UIM coverage of $[________________________________]. Subject to confirmation of all policies, exclusions, offsets, priority provisions, and prior payments, this is a policy-limits demand.

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: a claim is fairly debatable when a reasonable insurer would have denied or delayed benefits under the facts and circumstances. State Farm Mut. Auto. Ins. Co. v. Shrader, 1994 WY 89, ¶ 47, 882 P.2d 813. Bad faith requires both the absence of a reasonable basis and knowledge or reckless disregard of that absence.

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

Wyo. Stat. § 26-13-124 defines unfair claims settlement practices when conduct occurs with such frequency as to indicate a general business practice. It does not create an implied private right of action. Herrig v. Herrig, 844 P.2d 487, 494 (Wyo. 1992). The regulated conduct includes:

☐ 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

Available relief depends on the policy, causes of action proved, and applicable law. Wyo. Stat. § 26-15-124(b) generally requires a property/casualty claim to be accepted and paid or rejected within 45 days after receipt of the claim and supporting bills. Subsection (c) reaches actions against an insurer on a policy of any type, including a first-party UM/UIM policy claim; if a court renders judgment for the claimant and determines that the insurer's refusal to pay the full covered loss was unreasonable or without cause, it may also award a reasonable attorney fee and interest at 10% per year. Punitive damages require a separate showing of willful and wanton misconduct under Wyoming common law.

D. Regulatory Complaint

Non-compliance with this demand may result in a complaint to the Wyoming Department of Insurance, 106 E. 6th Avenue, Cheyenne, WY 82002; Consumer Affairs: (307) 777-7402 or (800) 438-5768.

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, our client may file suit in an appropriate Wyoming court asserting supported claims for breach of contract and, if warranted, tortious bad faith.

X. STATUTE OF LIMITATIONS NOTICE

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

• Written-contract action: generally 10 years after the cause of action accrues — Wyo. Stat. § 1-3-105(a)(i)
• Noncontract injury-to-rights action, including a supported bad-faith tort claim: generally 4 years after the cause of action accrues — Wyo. Stat. § 1-3-105(a)(iv)(C)

Accrual is not automatically the collision date and may differ by claim. Counsel must determine the controlling accrual date, any policy-imposed limitations, and any tolling or contractual conditions before relying on these periods.

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 complaint with the Wyoming Department of Insurance at 106 E. 6th Avenue, Cheyenne, WY 82002; Consumer Affairs: (307) 777-7402
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
☐ UM rejection and any UIM selection/election documents, if applicable
☐ 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

• Wyoming Legislature, Title 31 official current PDF: https://wyoleg.gov/statutes/compress/title31.pdf
• Wyoming Legislature, Title 26 official current PDF: https://wyoleg.gov/statutes/compress/title26.pdf
• Wyo. Stat. § 31-10-101 (2025 consolidated text): https://law.justia.com/codes/wyoming/title-31/chapter-10/section-31-10-101/
• Wyo. Stat. § 31-9-102 (2025 consolidated text): https://law.justia.com/codes/wyoming/title-31/chapter-9/article-1/section-31-9-102/
• 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/
• Wyo. Stat. § 26-15-124 — Claim decision; attorney fee and interest: https://law.justia.com/codes/wyoming/title-26/chapter-15/article-1/section-26-15-124/
• Wyo. Stat. § 1-1-109 — Comparative fault: https://law.justia.com/codes/wyoming/title-1/chapter-1/section-1-1-109/
• Wyo. Stat. § 1-3-105 — Limitations: https://law.justia.com/codes/wyoming/title-1/chapter-3/section-1-3-105/
• Wyo. Const. art. 10, § 4: https://wyoleg.gov/statutes/compress/title97.pdf
• Aaron v. State Farm Mutual Automobile Insurance Co., 2001 WY 112, 34 P.3d 929: https://law.justia.com/cases/wyoming/supreme-court/2001/276044.html
• 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 Rules of Evidence, Rule 408: https://www.wyocourts.gov/app/uploads/2025/01/WYOMING-RULES-OF-EVIDENCE-1.pdf
• Wyoming Department of Insurance consumer information: https://doi.wyo.gov/consumers/information
• Wyoming Department of Insurance Consumer Affairs: https://doi.wyo.gov/consumers/consumer-affairs-contact