Time-Limited Policy Limits Demand
Produces a defensible time-limited settlement demand with clear acceptance mechanics, sourced damages, and jurisdiction-aware bad faith framing. A single procedural defect (ambiguous acceptance, missing statutory requirement, sloppy deadline) can destroy the bad faith claim.
ATTORNEY REVIEW REQUIRED — Always require attorney review before sending.
Pre-Draft Intake
Gather before drafting (skip only if user says "use defaults"):
- Jurisdiction and posture — state; pre-suit / in suit / pre-post discovery
- Insurer identifiers — claim number, policy number, adjuster, all insureds
- Liability evidence — reports, photos, witness statements, citations
- Damages proof — medical records/bills, wage loss, prognosis, future care
- Policy limits — confirmed amount or plan to confirm
- Lien status — health insurer, Medicare/Medicaid, ERISA, hospital, workers' comp
- Settlement authority — confirmed from client on amount and release scope
Defaults if user skips: pre-suit posture; full limits demand; standard BI release of named insured; response window marked [VERIFY JURISDICTION]; professional tone.
Stop and request if settlement authority or policy limits are missing.
Workflow
1. Map Jurisdictional Requirements
- Identify theory: common-law failure-to-settle, statutory bad faith, unfair claims practices
- Verify notice/cure requirements, service methods, required content
- Flag unverified legal statements as
[VERIFY]
- If statutory notice required (e.g., FL Civ. Remedy Notice), draft separately unless statute allows integration
2. Draft Liability Narrative
- 5-10 sentences, evidence-cited
- Address obvious defenses and comparative fault
- Tie liability clarity to foreseeable excess exposure
- Must be defensible if read to a jury — do not overstate
3. Present Damages Exposure
- Itemized specials with documentation references
- Permanency and future care with source support
- Plausible verdict range rationale; mark unsourced research
[VERIFY]
- Ground excess-exposure argument in actual numbers
4. Structure Offer Terms
- Clear, unequivocal offer within limits or specified amount
- Define release scope, parties released, claims reserved
- Define payment mechanics: payee, delivery method, timing
- Acceptance must be objectively measurable — zero ambiguity
5. Set Deadline
- Specific date, time, and time zone
- Brief reasonableness justification
- Automatic withdrawal if not accepted exactly as specified
- Align with statutory minimum response periods
6. Frame Bad Faith Exposure
- Professional tone — no threats, no inflammatory language
- State excess exposure risk and insurer duty to protect insured
- Request insurer communicate demand to insured
- No coercive language
7. Delivery and Record-Keeping
- Delivery channels per jurisdictional requirements
- Written acceptance to a tracked inbox
- Exhibit index with labeled attachments
- Preserve proof of delivery
Letter Template
[Date]
Via [email + certified/overnight if required]
[Adjuster Name], [Insurer]
[Address]
Re: [Claimant] v. [Insured]
Claim No.: [ ] | Policy No.: [ ] | Loss Date: [ ]
This is a time-limited policy-limits demand to protect your insured
from excess exposure.
LIABILITY
[2-4 sentences with exhibit references]
DAMAGES
- Specials to date: $[ ] (Ex. [ ])
- Future care/prognosis: [ ] (Ex. [ ])
- Wage loss: $[ ] (Ex. [ ])
- A reasonable jury could return a verdict exceeding policy limits.
OFFER
In exchange for tender of full liability limits of $[ ] under Policy
No. [ ], [Claimant] will execute a release of [Named Insured(s)] for
all bodily injury claims arising from the [date] incident. The release
does not include [reserved claims/parties].
ACCEPTANCE
Written acceptance must be received by [date], [time], [time zone] at
[email]. Payment via [overnight/wire] to:
Payee: "[Client Name] and [Law Firm] Client Trust Account"
Address: [ ]
LIENS
[Claimant] will satisfy valid liens from proceeds. [Medicare/ERISA
escrow/holdback or cooperation language if applicable.]
DEADLINE
This offer expires automatically if not accepted exactly as stated by
the deadline above.
NOTICE
Given clear liability and damages, this demand provides a reasonable
opportunity to protect the insured from excess exposure. Please provide
a copy to your insured so they may seek independent counsel.
ATTACHMENTS
Exhibit Index: [list]
Required Letter Sections
Caption block (parties, claim/policy numbers) | Offer and acceptance mechanics | Liability summary with exhibits | Damages summary with totals | Deadline and withdrawal | Release scope | Lien/Medicare handling | Delivery instructions | Exhibit index
Post-Draft Checks
Ask after delivering the draft:
- Are policy limits confirmed, or must we request confirmation first?
- Does the release scope correctly identify all parties released and claims reserved?
- Is the deadline window reasonable for jurisdiction and case posture?
- Any statutory notice requirements (FL Civil Remedy Notice, GA § 9-11-67.1) needing separate filing?
Default recommendation if no response: confirm policy limits and release scope (most common failure points).
Quality Audit
Acceptance Checklist
- Written acceptance received by deadline
- Amount matches limits or stated sum
- All insureds match release scope
- Payment method and payees correct
- No added conditions; if added, treat as counteroffer
Jurisdiction Flags
All [VERIFY] — confirm current law before use:
| State |
Key Issue |
Reference |
| Texas |
Stowers elements |
G.A. Stowers Furniture Co. v. American Indemnity Co., 15 S.W.2d 544 (Tex. 1929) |
| California |
Prudent-insurer standard; Cal. Civ. Code § 1542 waiver |
Comunale, Crisci |
| Georgia |
Strict statutory TLD requirements and service methods |
O.C.G.A. § 9-11-67.1 |
| Florida |
Statutory bad faith, civil remedy notice, tort reform changes |
Fla. Stat. § 624.155 |
Guardrails
Anti-hallucination: Do not assert unverified legal standards — mark [VERIFY]. Do not misstate limits, injuries, or specials. Do not invent verdict data or fabricate case citations.
Ethics: No impossible conditions, hidden terms, or ambiguous acceptance steps. No direct communication with represented insureds without attorney approval. Disclose only necessary medical detail.
1---2name: bad-faith-demand3description: Drafts time-limited policy-limits demand letters that create an opportunity-to-settle record for third-party bad faith exposure. Use when the user mentions time-limited demand, policy limits demand, bad faith notice, Stowers demand, civil remedy notice, failure to settle demand, excess exposure letter, insurer settlement opportunity, or needs help with acceptance mechanics for a policy-limits offer. Also trigger for Georgia O.C.G.A. § 9-11-67.1 compliance, Florida statutory bad faith prerequisites, or documenting insurer refusal to settle.4---5
6# Time-Limited Policy Limits Demand
7
8Produces a defensible time-limited settlement demand with clear acceptance mechanics, sourced damages, and jurisdiction-aware bad faith framing. A single procedural defect (ambiguous acceptance, missing statutory requirement, sloppy deadline) can destroy the bad faith claim.
9
10**ATTORNEY REVIEW REQUIRED** — Always require attorney review before sending.
11
12## Pre-Draft Intake
13
14Gather before drafting (skip only if user says "use defaults"):
15
161. **Jurisdiction and posture** — state; pre-suit / in suit / pre-post discovery
172. **Insurer identifiers** — claim number, policy number, adjuster, all insureds
183. **Liability evidence** — reports, photos, witness statements, citations
194. **Damages proof** — medical records/bills, wage loss, prognosis, future care
205. **Policy limits** — confirmed amount or plan to confirm
216. **Lien status** — health insurer, Medicare/Medicaid, ERISA, hospital, workers' comp
227. **Settlement authority** — confirmed from client on amount and release scope
23
24**Defaults if user skips:** pre-suit posture; full limits demand; standard BI release of named insured; response window marked `[VERIFY JURISDICTION]`; professional tone.
25
26Stop and request if **settlement authority** or **policy limits** are missing.
27
28## Workflow
29
30### 1. Map Jurisdictional Requirements
31
32- Identify theory: common-law failure-to-settle, statutory bad faith, unfair claims practices
33- Verify notice/cure requirements, service methods, required content
34- Flag unverified legal statements as `[VERIFY]`
35- If statutory notice required (e.g., FL Civ. Remedy Notice), draft separately unless statute allows integration
36
37### 2. Draft Liability Narrative
38
39- 5-10 sentences, evidence-cited
40- Address obvious defenses and comparative fault
41- Tie liability clarity to foreseeable excess exposure
42- Must be defensible if read to a jury — do not overstate
43
44### 3. Present Damages Exposure
45
46- Itemized specials with documentation references
47- Permanency and future care with source support
48- Plausible verdict range rationale; mark unsourced research `[VERIFY]`
49- Ground excess-exposure argument in actual numbers
50
51### 4. Structure Offer Terms
52
53- Clear, unequivocal offer within limits or specified amount
54- Define release scope, parties released, claims reserved
55- Define payment mechanics: payee, delivery method, timing
56- **Acceptance must be objectively measurable** — zero ambiguity
57
58### 5. Set Deadline
59
60- Specific date, time, and time zone
61- Brief reasonableness justification
62- Automatic withdrawal if not accepted exactly as specified
63- Align with statutory minimum response periods
64
65### 6. Frame Bad Faith Exposure
66
67- Professional tone — no threats, no inflammatory language
68- State excess exposure risk and insurer duty to protect insured
69- Request insurer communicate demand to insured
70- No coercive language
71
72### 7. Delivery and Record-Keeping
73
74- Delivery channels per jurisdictional requirements
75- Written acceptance to a tracked inbox
76- Exhibit index with labeled attachments
77- Preserve proof of delivery
78
79## Letter Template
80
81```text
82[Date]
83
84Via [email + certified/overnight if required]
85[Adjuster Name], [Insurer]
86[Address]
87Re: [Claimant] v. [Insured]
88Claim No.: [ ] | Policy No.: [ ] | Loss Date: [ ]
89
90This is a time-limited policy-limits demand to protect your insured
91from excess exposure.
92
93LIABILITY
94[2-4 sentences with exhibit references]
95
96DAMAGES
97- Specials to date: $[ ] (Ex. [ ])
98- Future care/prognosis: [ ] (Ex. [ ])
99- Wage loss: $[ ] (Ex. [ ])
100- A reasonable jury could return a verdict exceeding policy limits.
101
102OFFER
103In exchange for tender of full liability limits of $[ ] under Policy
104No. [ ], [Claimant] will execute a release of [Named Insured(s)] for
105all bodily injury claims arising from the [date] incident. The release
106does not include [reserved claims/parties].
107
108ACCEPTANCE
109Written acceptance must be received by [date], [time], [time zone] at
110[email]. Payment via [overnight/wire] to:
111Payee: "[Client Name] and [Law Firm] Client Trust Account"
112Address: [ ]
113
114LIENS
115[Claimant] will satisfy valid liens from proceeds. [Medicare/ERISA
116escrow/holdback or cooperation language if applicable.]
117
118DEADLINE
119This offer expires automatically if not accepted exactly as stated by
120the deadline above.
121
122NOTICE
123Given clear liability and damages, this demand provides a reasonable
124opportunity to protect the insured from excess exposure. Please provide
125a copy to your insured so they may seek independent counsel.
126
127ATTACHMENTS
128Exhibit Index: [list]
129```
130
131### Required Letter Sections
132
133Caption block (parties, claim/policy numbers) | Offer and acceptance mechanics | Liability summary with exhibits | Damages summary with totals | Deadline and withdrawal | Release scope | Lien/Medicare handling | Delivery instructions | Exhibit index
134
135## Post-Draft Checks
136
137Ask after delivering the draft:
138
1391. Are policy limits confirmed, or must we request confirmation first?
1402. Does the release scope correctly identify all parties released and claims reserved?
1413. Is the deadline window reasonable for jurisdiction and case posture?
1424. Any statutory notice requirements (FL Civil Remedy Notice, GA § 9-11-67.1) needing separate filing?
143
144Default recommendation if no response: confirm policy limits and release scope (most common failure points).
145
146## Quality Audit
147
148- [ ] Offer amount matches confirmed limits or stated sum
149- [ ] Acceptance mechanics objectively measurable — no ambiguity
150- [ ] Deadline is specific date, time, and time zone
151- [ ] Liability narrative evidence-cited and defensible
152- [ ] Damages itemized with documentation references
153- [ ] Release scope defines who is released and what is reserved
154- [ ] Lien/Medicare handling addressed
155- [ ] No impossible conditions or hidden terms
156- [ ] Names, dates, claim numbers, dollar amounts cross-checked
157- [ ] Exhibit index complete and attachments labeled
158- [ ] Jurisdictional statutory requirements verified or flagged `[VERIFY]`
159- [ ] Tone professional — no threats or inflammatory language
160
161### Acceptance Checklist
162
163- Written acceptance received by deadline
164- Amount matches limits or stated sum
165- All insureds match release scope
166- Payment method and payees correct
167- No added conditions; if added, treat as counteroffer
168
169## Jurisdiction Flags
170
171All `[VERIFY]` — confirm current law before use:
172
173| State | Key Issue | Reference |
174|---|---|---|
175| Texas | Stowers elements | *G.A. Stowers Furniture Co. v. American Indemnity Co.*, 15 S.W.2d 544 (Tex. 1929) |
176| California | Prudent-insurer standard; Cal. Civ. Code § 1542 waiver | *Comunale*, *Crisci* |
177| Georgia | Strict statutory TLD requirements and service methods | O.C.G.A. § 9-11-67.1 |
178| Florida | Statutory bad faith, civil remedy notice, tort reform changes | Fla. Stat. § 624.155 |
179
180## Guardrails
181
182**Anti-hallucination:** Do not assert unverified legal standards — mark `[VERIFY]`. Do not misstate limits, injuries, or specials. Do not invent verdict data or fabricate case citations.
183
184**Ethics:** No impossible conditions, hidden terms, or ambiguous acceptance steps. No direct communication with represented insureds without attorney approval. Disclose only necessary medical detail.
CaseMark