What is Demand Letter?
A formal letter sent to an insurance company or opposing party outlining the facts of the case, injuries sustained, and the amount of compensation being sought.
Understanding Demand Letter
Demand letters typically include a summary of the incident, description of injuries, medical treatment received, documentation of damages, and a specific settlement demand. They often initiate serious negotiations and can serve as evidence of the claim's value if litigation becomes necessary.
Examples
- 1Sending demand letter after reaching maximum medical improvement
- 2Including medical records and bills as supporting documentation
- 3Demanding policy limits in serious injury cases
Related Terms
Settlement
An agreement between parties to resolve a legal dispute without going to trial. Settlements typically involve the defendant paying the plaintiff an agreed-upon sum in exchange for dropping the lawsuit.
Policy Limits
The maximum amount an insurance company will pay for a covered claim under an insurance policy.
Statute of Limitations
A law that sets the maximum time after an event within which legal proceedings may be initiated. Once the statute of limitations expires, the claim is typically barred forever.
Discovery
The pre-trial phase in a lawsuit where each party can obtain evidence from the opposing party through various methods including interrogatories, depositions, and requests for documents.
Deposition
Sworn, out-of-court testimony given by a witness or party that is recorded for later use in court proceedings. Depositions are a key part of the discovery process.
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