Demand letter

What it is

The demand letter is the plaintiff's opening case for settlement. A typical injury demand covers how the accident happened and why the insured is liable, the injuries and diagnoses, the course of treatment, a table of specials, the effect on the client's life, the amount demanded and the time to respond. It encloses the records and bills that prove each point.

The California rule

Most demands follow no statutory form, but two rules come up often. A pre-suit demand to settle within policy limits with a deadline is a time-limited demand, and must meet Code of Civil Procedure 999.1. And once an insurer receives proof of claim, the Fair Claims Settlement Practices Regulations (California Code of Regulations, title 10, section 2695.7) require it to accept or deny the claim within 40 days, or explain in writing why it needs more time. Insurance Code 790.03(h) lists the unfair claims practices the regulations enforce.

Why it matters to a plaintiff firm

The demand sets the anchor for the first offer, and carriers read it closely. Each fact should be traceable to a page in the records, so an adjuster can't wave it away and the firm can defend it later. A weak or incomplete demand also makes a later bad-faith argument harder. See the policy-limits demand letter guide and what AI demand software costs.