| name | bad-faith-demand |
| description | 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.
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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.
