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---56# Time-Limited Policy Limits Demand78Produces 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.910**ATTORNEY REVIEW REQUIRED** — Always require attorney review before sending.1112## Pre-Draft Intake1314Gather before drafting (skip only if user says "use defaults"):15161. **Jurisdiction and posture** — state; pre-suit / in suit / pre-post discovery172. **Insurer identifiers** — claim number, policy number, adjuster, all insureds183. **Liability evidence** — reports, photos, witness statements, citations194. **Damages proof** — medical records/bills, wage loss, prognosis, future care205. **Policy limits** — confirmed amount or plan to confirm216. **Lien status** — health insurer, Medicare/Medicaid, ERISA, hospital, workers' comp227. **Settlement authority** — confirmed from client on amount and release scope2324**Defaults if user skips:** pre-suit posture; full limits demand; standard BI release of named insured; response window marked `[VERIFY JURISDICTION]`; professional tone.2526Stop and request if **settlement authority** or **policy limits** are missing.2728## Workflow2930### 1. Map Jurisdictional Requirements3132- Identify theory: common-law failure-to-settle, statutory bad faith, unfair claims practices33- Verify notice/cure requirements, service methods, required content34- Flag unverified legal statements as `[VERIFY]`35- If statutory notice required (e.g., FL Civ. Remedy Notice), draft separately unless statute allows integration3637### 2. Draft Liability Narrative3839- 5-10 sentences, evidence-cited40- Address obvious defenses and comparative fault41- Tie liability clarity to foreseeable excess exposure42- Must be defensible if read to a jury — do not overstate4344### 3. Present Damages Exposure4546- Itemized specials with documentation references47- Permanency and future care with source support48- Plausible verdict range rationale; mark unsourced research `[VERIFY]`49- Ground excess-exposure argument in actual numbers5051### 4. Structure Offer Terms5253- Clear, unequivocal offer within limits or specified amount54- Define release scope, parties released, claims reserved55- Define payment mechanics: payee, delivery method, timing56- **Acceptance must be objectively measurable** — zero ambiguity5758### 5. Set Deadline5960- Specific date, time, and time zone61- Brief reasonableness justification62- Automatic withdrawal if not accepted exactly as specified63- Align with statutory minimum response periods6465### 6. Frame Bad Faith Exposure6667- Professional tone — no threats, no inflammatory language68- State excess exposure risk and insurer duty to protect insured69- Request insurer communicate demand to insured70- No coercive language7172### 7. Delivery and Record-Keeping7374- Delivery channels per jurisdictional requirements75- Written acceptance to a tracked inbox76- Exhibit index with labeled attachments77- Preserve proof of delivery7879## Letter Template8081```text82[Date]8384Via [email + certified/overnight if required]85[Adjuster Name], [Insurer]86[Address]87Re: [Claimant] v. [Insured]88Claim No.: [ ] | Policy No.: [ ] | Loss Date: [ ]8990This is a time-limited policy-limits demand to protect your insured91from excess exposure.9293LIABILITY94[2-4 sentences with exhibit references]9596DAMAGES97- Specials to date: $[ ] (Ex. [ ])98- Future care/prognosis: [ ] (Ex. [ ])99- Wage loss: $[ ] (Ex. [ ])100- A reasonable jury could return a verdict exceeding policy limits.101102OFFER103In exchange for tender of full liability limits of $[ ] under Policy104No. [ ], [Claimant] will execute a release of [Named Insured(s)] for105all bodily injury claims arising from the [date] incident. The release106does not include [reserved claims/parties].107108ACCEPTANCE109Written acceptance must be received by [date], [time], [time zone] at110[email]. Payment via [overnight/wire] to:111Payee: "[Client Name] and [Law Firm] Client Trust Account"112Address: [ ]113114LIENS115[Claimant] will satisfy valid liens from proceeds. [Medicare/ERISA116escrow/holdback or cooperation language if applicable.]117118DEADLINE119This offer expires automatically if not accepted exactly as stated by120the deadline above.121122NOTICE123Given clear liability and damages, this demand provides a reasonable124opportunity to protect the insured from excess exposure. Please provide125a copy to your insured so they may seek independent counsel.126127ATTACHMENTS128Exhibit Index: [list]129```130131### Required Letter Sections132133Caption 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 index134135## Post-Draft Checks136137Ask after delivering the draft:1381391. 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?143144Default recommendation if no response: confirm policy limits and release scope (most common failure points).145146## Quality Audit147148- [ ] Offer amount matches confirmed limits or stated sum149- [ ] Acceptance mechanics objectively measurable — no ambiguity150- [ ] Deadline is specific date, time, and time zone151- [ ] Liability narrative evidence-cited and defensible152- [ ] Damages itemized with documentation references153- [ ] Release scope defines who is released and what is reserved154- [ ] Lien/Medicare handling addressed155- [ ] No impossible conditions or hidden terms156- [ ] Names, dates, claim numbers, dollar amounts cross-checked157- [ ] Exhibit index complete and attachments labeled158- [ ] Jurisdictional statutory requirements verified or flagged `[VERIFY]`159- [ ] Tone professional — no threats or inflammatory language160161### Acceptance Checklist162163- Written acceptance received by deadline164- Amount matches limits or stated sum165- All insureds match release scope166- Payment method and payees correct167- No added conditions; if added, treat as counteroffer168169## Jurisdiction Flags170171All `[VERIFY]` — confirm current law before use:172173| 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 |179180## Guardrails181182**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.183184**Ethics:** No impossible conditions, hidden terms, or ambiguous acceptance steps. No direct communication with represented insureds without attorney approval. Disclose only necessary medical detail.
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