When you’ve been injured in an accident, the last thing you want is a lengthy, complicated legal battle. Fortunately, in many personal injury cases, there’s a tool that can help resolve things quickly and fairly: the policy limit demand. This important process can provide peace of mind, particularly when medical bills and recovery needs are high. In Georgia, policy limit demands are a crucial part of the legal strategy, designed to settle cases efficiently while protecting the injured party’s right to fair compensation.

In this article, we’ll explore what a policy limit demand is, when it should be made, and the crucial role that attorneys play in ensuring that the demand is effective. We’ll also look at real-life examples to demonstrate how this process works and the impact it can have on injury cases.

What is a Policy Limit Demand?

A policy limit demand is a formal request made by an attorney to an insurance company, asking them to settle a case for the full amount covered under their insured’s policy. This demand is typically made when the injured party’s medical bills and other damages exceed the insurance policy’s limits. In these situations, attorneys use the policy limit demand as a way to secure an efficient settlement for their clients without resorting to a lengthy courtroom battle.

In Georgia, the policy limit demand letter policy limit is governed by OCGA 9-11-67.1, a statute designed to give insurance companies an opportunity to resolve claims within the policy’s coverage. If the insurance company accepts the demand, it closes the case and releases the at-fault party from any further liability. However, if the insurance company refuses or offers a lower settlement than requested, it can lead to extracontractual liability, meaning the insurance company may be held responsible for more than the policy’s limits.

The Role of Attorneys in Policy Limits Demands

Attorneys play a pivotal role in the policy limit demand process. They are responsible for evaluating the severity of the injuries, understanding the full scope of damages, and determining whether it’s in their client’s best interest to make this demand.

Beyond merely submitting the request, attorneys work closely with medical professionals to gather necessary documentation, such as medical records and expert testimony, which help illustrate the extent of the injury and future care needs. Attorneys also ensure that all aspects of the claim-such as medical expenses, pain and suffering, and potential future treatment-are factored into the demand.

When an attorney makes a policy limit demand, they are not only requesting that the insurance company cover the full extent of damages but also protecting their client from the risks of going to trial. By submitting a well-documented demand, the attorney can secure a fair settlement without the delays and costs associated with litigation.

When Should a Policy Limit Demand Be Made?

Timing is critical when making a policy limit demand. In cases where injuries are not severe, policy limit demands may not be necessary, especially if medical bills and damages are relatively low. However, in situations involving catastrophic injuries-such as brain injuries, paralysis, or severe burns-attorneys will often make the demand sooner rather than later to avoid unnecessary delays.

For a policy limit demand to be effective, the injured party must first reach maximum medical improvement (MMI). MMI refers to the point at which the injured party’s medical condition has stabilized, and future medical needs are reasonably predictable. Once MMI is reached, it’s much easier to assess the full scope of damages and make an accurate policy limit demand. This ensures that all medical bills, including potential future treatments, are accounted for.

Real-Life Case: Policy Limits Demand in Action

To illustrate the impact of a policy limit demand, consider the following real-life case from Marietta, GA. An individual was involved in a severe car accident, resulting in multiple broken bones and internal injuries. The medical bills quickly escalated to over $150,000 due to extensive surgeries and rehabilitation.

The attorney representing the injured party determined that the insurer’s $200,000 policy limit would likely be sufficient to cover the immediate medical expenses and future care needs. The attorney made a policy limit demand to the insurance company, presenting the full extent of the injuries and demonstrating that the settlement should be based on not just current medical bills, but also future care costs and the pain and suffering experienced by the victim. The insurance company accepted the demand, settling the case for the full policy amount.

This settlement was particularly beneficial for the injured party because it ensured all immediate medical expenses were covered, while also providing funds for ongoing recovery and future treatment. This case highlights how policy limits demand can provide a fair and timely resolution to complex injury cases without the need for litigation.

What Happens if the Insurance Company Rejects the Policy Limit Demand?

In cases where the insurance company rejects the policy limit demand or offers a lower settlement than requested, the injured party and their attorney may have to consider alternative options, including taking the case to trial. The rejection of a policy limit demand can expose the insurance company to extracontractual liability, meaning the company may be liable for any damages awarded by the jury beyond the policy’s limits.

For example, if the insurance company offers a settlement that is below the policy limit, and a jury later awards a higher amount, the insurer may be responsible for the difference. This can result in significant financial exposure for the insurance company and is one of the primary reasons attorneys prefer to settle cases within the policy limits whenever possible.

Why You Need an Experienced Attorney for Your Personal Injury Case

Navigating the complexities of personal injury law and policy limit demands requires an experienced attorney asking for policy limits who understands the nuances of insurance negotiations and the legal landscape in Georgia. An experienced attorney can evaluate your case, make a well-supported policy limit demand, and help you secure the compensation you deserve without the need for a lengthy court battle.

If you or a loved one has been injured in an accident, understanding how policy limit demands work is crucial to securing a fair settlement. At Kalka Law Group, we have the experience and expertise to guide you through the process and ensure that you receive the compensation you deserve. Contact us today for a free consultation, and let us help you get the justice you’re entitled to.