Demand Letter

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  • Topic: Insurance, Liability insurance, Limit
  • Pages : 2 (331 words )
  • Download(s) : 143
  • Published : August 22, 2012
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Thursday, January 26, 2012

Interinsurance Exhange of the
Automobile Club
1500 Commercial Way
Bakersfield, CA 93309

RE: Our Client Rogelio Garcia
Your Insured: Sofia Rodriguez
Claim No: 010532738
D/L: 09/22/2011

Dear Ms. Foster:

Reference is made to our letter of October 7, 2011, requesting the policy limits of your insureds liability policy. Unfortunately, you have refused to release this information claiming that your insured will not authorize the Auto Club to disclose his policy limits. You should be aware fo the fact that depending on the policy limit, there is good reason to believe this matter can be resolved due to the seriousness of our client’s injuries. In other words, if your insured has minimum limits or limits below $100,000.00 per person, then it is very likely the matter will settle.

In determining whether or not to disclose the limits of your insured’s policy, I direct your attention to the case of Boicourt vs. Amex Assurance Co., 78 CA 4th 1390, copy attached. In this case the insurer refused to disclose the policy limits of its insured before a formal demand was made. As the Court held on page 2 of the opinion, copy attached, “The insurer’s refusal to disclose (or in California, the refusal to give the insured the option of disclosing) policy limits may have foreclosed a possible settlement of the underlying claim within those limits.” As the Court stated, a refusal to disclose limits prior to a complaint being filed creates a conflict of interest between the liability insurer and its insured’s. In refusing to give the insured the option of disclosing policy limits and thus settling the matter within those limits, gives rise to potential bad faith on the part of the insurer with respect to its insured. To avoid this possibility, Mr. Garcia is requesting that limits be disclosed now, with a view toward early settlement of the third party claim.

Let me hear from you soon....
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