OCGA 9-11-67.1 Georgia Policy Limits Demand Statute

O.C.G.A. § 9-11-67.1

The statute does not define “bad faith” or outline what insurance behavior makes a negligent claims handling case.

It only sets the requirements for a pre-suit demand sent by Plaintiff’s counsel.

Failing to follow the statute means that your demand is ineffective as a matter of law.

There can be no “bad faith” or negligence claim for failure to timely pay down the road because the demand has no effect.

When Does it Apply?

  1. Car wrecks July 1, 2013 and after.
  2. If Lawyer represented, not to pro se demands.
  3. Only applies pre-suit. If you are in litigation, the law does not apply.
  4. Motor Vehicle Accidents only

What Changed?

  1. 30 day minimum time to consider the demand.
  2. Must cite the statute in the demand.
  3. Open for acceptance in writing; no more saying you can only accept demand by payment.
  4. Must send by certified mail or statutory overnight delivery, return receipt requested
  5. You must offer a release of some type and specify the type of release and the parties tobe released. Best practice is to attach your own release.
  6. The insurer has the right to request more information about:
                  a. medical liens;
                  b. subrogation claims by health insurance, workers compensation, Medicare andMedicaid
                 c. standing to release claims;
                 d. missing medical bills and missing medical records;
                 e. other relevant facts.

So What If I Don’t Comply with the Drafting requirements?

Then your demand is incapable of acceptance and the
insurance company can not be found to have turned down an
offer to settle within policy limits as a matter of law.

Best Practices:
  1. Track this Policy Limits demand.
  2. Send your draft of the release.
  3. Be detailed in your records gathering. Any missing records can be a valid reason to stall on paying limits.
  4. Respond to the adjuster’s requests for additional information in writing. If the request is foolish, politely ask why the information is needed to evaluate the claim.
  5. Remember every letter and phone call is potentially a jury exhibit.
  6. Request the payment be made within ten days of acceptance. Failure to pay timely is a denial of the offer to settle. This will be a ripe area for litigation.

What Does it All Mean?

You can file suit to opt out, but DO NOT BE AN ASS

I think a lot of us will file suit so that conventional demands can still be used for cases where the reimbursement scenario is a tangled mess and the limits need to be secured.

The reason we have the legislature paying attention is because some of the Plaintiffs bar thinks that good practice means getting too cute with demand language traps. If members of the Bar continue to behave that way in litigation, there will be more drastic measures implemented.

Insurance companies don’t need helping screwing up.

When is Failure to Pay within 10 Days of Written Acceptance a
Trigger for Extra-Limits Claims?

It is a different analysis from the old demands where the offer was open for acceptance by payment only and they missed it by a few days. In the old cases, there was no colorable acceptance.

Under this scheme, there is a colorable acceptance in the 30 day letter but the statute makes it clear that you can require payment within 10 days of the acceptance letter. The idea is that the acceptance letter is one requirement and payment is another. Failure to meet both terms of the demand means
no offer and acceptance. Is missing part two a big deal? Arguably yes. Its all a matter of degree. One day, please don’t bring that case. 15 days late after multiple demands, maybe.

Missing the 30 Day Acceptance Gives You a Better Case Than
in The Old Days

In the new scheme, we will still have insurers who fail to deliver the acceptance letter within 30 days of receipt. Those facts will still be analyzed the old way. How badly did they miss the due date and why?

Our appellate argument is stronger now. 30 days is reasonable as a matter of law and the demand contained all the required documents. The insurers failure to request specific further information prior to the 30 day deadline should yield an extra-limits case that can go to the jury.

What Will Insurers Do?

It means we should expect organized form response letters from insurers requesting any missing medical documents. The letters will cite the statute and request documentation and affidavits on
reimbursement claims combined with extensive assurances when it comes to liens.

As a matter of practice they may begin to ask for certifications of lien information to buy more time. The request for more information is probably waived if the 30 days goes by so expect the requests on a regular basis to cover their rears.


The statute does not address whether the client needs to offer indemnity so that question will remain for the courts. Can we argue that its exclusion from the statute means the legislature did not intend to be so protected?

Lawyer sends totally compliant demand but refuses to indemnify for health insurance subrogation

Carrier refuses to tender limits without the indemnity.
Result? The statute does not speak to this and we are back to arguing before the Appellate Courts.

The mood from the trial and appellate bench is sour on bad faith claims. Judges do not look kindly on simple technical mistakes resulting is massive extra-contractual damages.





The full statute:

O.C.G.A. § 9-11-67.1
(a) Prior to the filing of a civil action, any offer to settle a tort claim for personal injury, bodily injury, or death arising from the use of a motor vehicle and prepared by or with the assistance of an attorney on behalf of a claimant or claimants shall be in writing and contain the following material terms:

(1) The time period within which such offer must be accepted, which shall be not less than 30 days from receipt of the offer;

(2) Amount of monetary payment;

(3) The party or parties the claimant or claimants will release if such offer is accepted;

(4) The type of release, if any, the claimant or claimants will provide to each releasee; and

(5) The claims to be released.

(b) The recipients of an offer to settle made under this Code section may accept the same by providing written acceptance of the material terms outlined in subsection (a) of this Code section in their entirety.

(c) Nothing in this Code section is intended to prohibit parties from reaching a
settlement agreement in a manner and under terms otherwise agreeable to the parties.

(d) Upon receipt of an offer to settle set forth in subsection (a) of this Code section, the recipients shall have the right to seek clarification regarding terms, liens, subrogation claims, standing to release claims, medical bills, medical records, and other relevant facts. An attempt to seek reasonable clarification shall not be deemed a counteroffer.

(e) An offer to settle made pursuant to this Code section shall be sent by certified mail or statutory overnight delivery, return receipt requested, and shall specifically reference this Code section.

(f) The person or entity providing payment to satisfy the material term set forth in paragraph (2) of subsection (a) of this Code section may elect to provide payment by any one or more of the following means:

(1) Cash;

(2) Money order;

(3) Wire transfer;

(4) A cashier's check issued by a bank or other financial institution;

(5) A draft or bank check issued by an insurance company; or

(6) Electronic funds transfer or other method of electronic payment.

(g) Nothing in this Code section shall prohibit a party making an offer to settle from requiring payment within a specified period; provided, however, that such period shall be not less than ten days after the written acceptance of the offer to settle.

(h) This Code section shall apply to causes of action for personal injury, bodily injury, and death arising from the use of a motor vehicle on or after July 1, 2013.
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