§ 999.1.Requirements For Time-Limited Demand to Settle Any Claim

This section opens Chapter 3.2's time-limited demand procedure, a settlement tool distinct from § 998's offer to compromise. Where § 998 shifts trial costs between parties in litigation, a time-limited demand under this chapter is typically sent before a lawsuit is even filed, aimed at persuading a liability insurer to settle within its policy limits before the case escalates.

To count as a valid time-limited demand, the document has to be in writing, labeled as a time-limited demand or reference this section by name, and give the recipient at least thirty days to accept if sent by email, fax, or certified mail — or at least thirty-three days if sent by ordinary mail. It also has to make a clear, unequivocal offer to settle every claim within the policy limits, including any liens, and offer a complete release of the insured from all present and future liability for the incident.

Beyond the deadline and the release, the demand must include the date and location of the loss, the claim number if one is known, a description of the claimant's known injuries, and reasonable supporting proof, which can include medical records or bills. Together these requirements are meant to give the insurer everything it needs to evaluate and respond to the demand within the time given.