For a claimant to issue a valid time-limited demand, it must meet certain requirements, including:
- Being written
- Being labeled as a time-limited demand (or reference the statute)
- Providing at least 30 days to accept if transmitted by email or 33 days if transmitted by mail
- Include a clear and unequivocal offer to settle all claims within policy limits, including satisfying all liens
- Offering complete release from the claimant for the liability insurer’s insured from all present and future liability for the occurrence
- Providing the date of the loss, the location of the loss, and the claim number (if known)
- Providing a description of all known injuries sustained by the claimant
- Providing reasonable proof of the claim and damages (e.g., medical records or bills)
When an insurer receives a time-limited demand, they have the right to seek clarification, additional information, or request an extension if they need further information. However, this request “shall not, in and of itself, be deemed a counteroffer or rejection of the demand.” If the insurer chooses to reject the demand, they must notify the claimant in writing prior to the expiration of the demand, including the basis for the rejection.
