Responding to Time-Limited Demands for Policy Limits:
Reasonableness, Safe Harbors; Obtaining Summary Judgment

A time limited policy limits demand to a defendant’s insurer is a frequent tool used by plaintiff’s lawyers in an attempt to force crucial decisions on limited information. They have the capacity to force crucial decisions, sometimes with limited information and with very little time to decide. Bad faith liability can arise from the improper rejection or non-payment of a time-limited demand, often without showing intentional wrongdoing or motive.What constitutes a valid demand that triggers the obligation to respond and what constitutes a proper response has generated a broad body of case law. Statutory or judge-made “safe harbors” may allow a range of responses, but these rules can be narrowly construed and easily misinterpreted.If a bad faith claim is filed, the reasonableness standards that apply in a time-limited demand situation make summary judgment challenging but by no means impossible, as demonstrated by recent decisions in key jurisdictions.Listen as this experienced panel of insurance attorneys guides counsel through responding to time-limited demands and offers a roadmap to summary judgment if a bad faith case is filed.

Outline

  1. Essential elements of a policy-limit, time-limit demand
  2. Standards for evaluation of time-limited demands
    1. Statutory
    2. Common law
    3. Covered vs. uncovered claims
  3. Safe harbors
  4. Roadmap to summary judgment if bad faith alleged

Details

CLE On Demand Webinar

A Strafford production specially selected for HB audiences.

Speakers

Scott F. Bertschi
Partner
Clyde & Co US

Rachel E. Hudgins
Attorney
Hunton Andrews Kurth

Jay M. Levin
Member
Flaster Greenberg

Kimberly Parson
Partner
Rebar Kelly

Benefits

The panel will review these and other pivotal issues:

  • Who can make a time-limited demand, and is client consent required?
  • Does the insurer have a duty to settle or a duty to make reasonable settlement decisions?
  • Must the demand include any particular information?
  • What is the importance of releases, indemnification, and lien treatment offered or omitted from a demand?
  • Can the insurer consider coverage defenses or questionable liability when responding?