QuestionHi Bennie -
I am in the process of sending a demand letter to my auto insurance company for policy limits under the uninsured motorist portion of my policy. In my letter, I have been advised to state that I'd like a response within 15 days. Is this calendar days or business days?
Also, what do I do if no response? Do I call the adjuster or send another letter threatening a lawsuit AND bad faith claim? I have been told by 2 different attorneys I have consulted that my case is worth at least 5 times policy limits. They have suggested that I not accept anything less than policy limits.
Thanks for your help, it is very much appreciated.
AnswerHi Bill,
It would have been very helpful if you had provided me with some background information such as your state of residence, the date of the accident, the severity of your injuries, if you are fully recovered or if there is going to be some kind of impairment or future treatment.
Also, the total of your 'specials', which include Ambulance, ER visit, medical bills, physical therapy, whether or not you used an MD an physical therapy or a chiropractor, your documented lost wages and if your auto policy paid all or part of your medical bills and if so, exactly how much. It would also be helpful to know the limits of your uninsured motorists coverage, when you first started discussing a settlement with your company and what kind of answer they have provided.
If you wish to send me a PRIVATE follow-up question with all that information, I can give you a more educated answer.
As I said, I can provide a much better answer if I have the above information, but I will give you a limited answer now, based on the limited information provided.
If you are determined to do a demand letter, the time frame for response should be 15 calendar days and it should be hand delivered or sent certified mail with a return receipt request. Don't worry, your insurance company will respond, they have no intention of being caught in a bad faith situation. If the Attorneys that you spoke with know anything about the legal wording of an insurance policy, they should have told you that you can not sue your own company. If your demand letter provides adequate justification, they will have no problem paying the policy limit. If they don't feel that it's worth the limit,they may try to negotiate with you or simply state that under the legal wording of the policy they have the legal right to have the claim handled under the arbitration process that is spelled out in your policy.
They will hire an attorney to represent the company, you will hire an attorney to represent you (he is going to work on a contingency basis and his fee is 1/3 of your settlement), the two attorneys will meet and by mutual agreement decide on a 3rd attorney who will function as the arbitrator. It is jointly agreed by both sides that his decision is final and binding on all parties. A future date will be set for the arbitration process, which will give you adequate time to inform your attorney of the full history of the accident, your injuries and your specials.
This entire process is almost like a trial except there is no jury. Your attorney will be able to subpoena witness on your behalf and the insurance company attorney will be able to cross examine them. He will also have experts to rebut your claim (your insurance company will send you to an Independent Medical Examiner) (IME), who will have all your medical records reviewed, he will question and examine you and then appear as a witness against you at the arbitration. The arbitration process takes from 1 1/2- 3 days and you will be seated beside your attorney the entire time. After the process is complete, the arbitrator will state that he will render a decision within 20-30 days.
I hope this has been helpful, although I feel I could be of a lot more help if I had the full story.
Your feedback by rating my answer will be appreciated.
Sincerely,
Bennie
San Francisco Bay Area 11-27-07 7:40 PM PST
