A time-limited demand must be in writing, reference the applicable section of law, sent by certified mail to the defendant's liability insurer, contain the time period for acceptance which shall not be less than ninety days, the amount of money requested, the date and location of the loss, the claim number, a description of the injuries sustained, a description of the parties and claims to be released from liability if the demand is accepted, and an unconditional release for the liability insurer's insureds from all present and future liability. The demand also must be accompanied by additional information as provided in the act, which includes authorizations to allow the liability insurer to obtain records from all relevant employers and medical care providers.

A liability insurer with the right to settle on behalf of an insured may accept the time-limited demand in writing within the time period provided in the demand.

The act does not apply to offers to settle made within ninety days of the trial.

In a lawsuit filed by the claimant as assignee of the defendant or by the defendant for the benefit of the claimant, a time-limited demand that does not strictly comply with the act cannot be considered as a reasonable opportunity to settle for the insurer and shall not be admissible in a suit alleging extra-contractual damages against the liability insurer.

This act is substantially similar to SS/SCS/SB 213 (2017) and to provisions in the truly agreed to and finally passed version of HCS/HBs 339 & 714 (2017).

JESSI BAKER