Typically, after your attorney has sent a demand letter to the insurance adjuster or other party, it can take anywhere from a few weeks to a couple of months to obtain your settlement. Unfortunately, it’s impossible to determine exactly how long after a demand letter a settlement will take.
If a sender of a demand letter has hired an attorney, they’re clearly spending money to protect their rights and it demonstrates that they’re more serious than if they’re just emailing or calling and making the legal claims themselves. Second, a demand letter is generally seen by the court as a sign of good faith.
Whether the insurance company disputed a worker’s disability rating played a large role in how long the workers’ compensation case took. When the insurance company did not dispute the worker’s PD rating, the case was resolved in 14.4 months. However, when the insurance company did dispute the worker’s PD rating, the case took 18.7 months.
This is usually how things go after a demand letter is sent: it triggers a back-and-forth process where the injured person starts with an inflated demand amount, the insurance company comes in with a much lower offer, and the two parties meet somewhere in the middle. (Get tips on responding to an insurance company's too-low settlement offer .)
So by responding timely to a demand letter or having your attorney respond to one, you’re able to try to work things out without expensive and stressful litigation. I’ve written an article on my website at aaronhall.com.
Once you've written your demand letter and sent it on to the insurance company, the response time may vary. Typically, you can expect an answer within a few weeks. However, sometimes this process can take as long as a few months.
After you send a demand letter, one of several things can happen: The insurance company accepts your demand, and the settlement goes forward. You'll receive the compensation you asked for and sign a release of liability in exchange.
If an insurance company has still not responded to your demand letter, the next step may be to contact a legal representative and file a lawsuit. Be sure to understand the statute of limitations for your case. Once those run out, you could lose the right to sue.
The Results of a Demand Letter Bottom line: you should generally not expect a demand letter to yield a quick and effective resolution, except in the rarest of cases where the stars align (enormous damages, clear liability, and reasonable defendant and opposing counsel on the other side).
Personal injury cases usually take quite some time to settle or resolve. The reasons a case can progress slowly can be summed up into three general points: Your case is slowed down by legal or factual problems. Your case involves a lot of damages and substantial compensation.
As a very rough guide, a claim may take 6 to 12 months if liability is accepted by the treatment or care provider immediately. If liability is disputed, it could take 12 to 18 months for more complicated claims. Very complex cases can take significantly longer.
Ignoring a demand letter — particularly if you don't read it at all — usually gives the obligee no other choice but to initiate a formal legal action against you or your business, perhaps even sooner than they otherwise would have.
Insurance companies want to settle cases right away, because they don't want you to have an opportunity to speak to a personal injury lawyer. If an insurance company is offering you any money, it is always advisable that you at least have a consultation with an attorney.
How to Respond to a Demand LetterEvaluate the letter. The first step after receiving a letter is to carefully read it and evaluate its merits. ... Determine its intent. People send demand letters for all sorts of reasons. ... Calculate the claims. ... Is a lawyer needed? ... Respond within allotted time frame.
A general rule is 75% to 100% higher than what you would actually be satisfied with. For example, if you think your claim is worth between $1,500 and $2,000, make your first demand for $3,000 or $4,000. If you think your claim is worth $4,000 to $5,000, make your first demand for $8,000 or $10,000.
A Demand Letter is a written request that individuals send to demand a payment or action or to reach a settlement outside of court (to quickly resolve a legal matter). The goal of an LOD is to resolve the issue without going to court to dispute it.
Demand letters outline the damages, the demand for restitution, a deadline, as well as any consequences if the conditions are not met. Don't ignore a demand letter but take the time to review and respond to it if you receive one.
Once a demand letter is in the insurance company’s hands, the ball is in their court to either pay up or face trial. This can be a frustrating time for clients, especially when they’ve waited for weeks or months to get the money they’re owed. Every claim is different, and every insurance company’s response to demand letters is different, ...
The Louisiana personal injury lawyers at Dudley DeBosier know that time is of the essence when it comes to personal injury claims. Mounting expenses and no income are a bad combination, but it’s even worse to accept a settlement that barely covers the expenses you’re facing today—let alone the ones that will continue building months or years down the road.
Once you’ve written your demand letter and sent it on to the insurance company, the response time may vary. Typically, you can expect an answer within a few weeks. However, sometimes this process can take as long as a few months.
Instead, the problem may lie with the insurance adjuster. They may be dealing with many cases at once, and that sometimes means that you won’t get as speedy a response for your questions and your letter.
When you’ve suffered an injury in South Carolina, you may have found out quickly how difficult it can be to get the full settlement you need from the insurance company. You may have even received a settlement offer that was too low, and now you’re waiting on an answer for the demand letter you sent in return.
According to California Code of Regulations section 2695.5, an insurance company has to respond to a demand letter within 15 days of its receipt. Under state law, your insurer has a maximum of 15 days to notify you that it has received your demand letter.
If you submitted your demand letter without first running it by an attorney, it may contain errors that could make a settlement take longer to achieve. An issue could rest with your insurance company. The company might be dealing with a lot of claims or need additional time reviewing your case.
For 50% of workers, it took between 13 and 24 months for their cases to conclude. Given that the workers’ compensation system is known for having a slow process, these time frames are not too surprising. The good news, though, is that you might still receive some benefits before your case is officially resolved.
The longer time frame makes sense because a workers’ compensation appeal takes additional time and effort. Once the worker files the appeal, the case is assigned to a workers’ compensation judge and set for a hearing.
According to 34% of our readers, the number one cause of delay was due to the employer or its insurance company not moving fast enough.
In most cases, the insurance company will send the worker to an independent medical examination (IME) by a doctor of its choosing, in order to get a second opinion as to the worker’s disability. The IME doctor will then write a report, which the worker will have an opportunity to review and challenge.
The overwhelming majority of readers, 90% , believed that there was a delay in their workers’ compensation cases. We asked our readers to report what they believed to be a source of delay in their cases.
When the insurance company did not dispute the worker’s PD rating, the case was resolved in 14.4 months. However, when the insurance company did dispute the worker’s PD rating, the case took 18.7 months. The increased time frame makes sense given the extra effort that goes into a disability rating dispute.
As to other causes of delay, 12% of workers reported that it took a long time to reach a fair settlement agreement, 7% reported that it took a long time to find a lawyer, and 19% reported that the delay was due to a variety of other factors.
The most common route is that, after your demand letter has been sent, the insurance company will reject your settlement amount and come back with a different value. Once that has been sent, you and your attorney will either accept or refuse the amount. This back-and-forth process can go on until a dollar amount is agreed upon.
The ultimate goal of a demand letter is to provide you, the victim, with a settlement you are satisfied with. But if you’re facing a personal injury lawsuit, you’re likely wondering how long your settlement will take after your demand letter has been sent. Each case is different.
To expedite the settlement process, you and your attorney need to present the strongest case possible. The following are some details your attorney may include in your letter: 1 How your injuries were sustained 2 How your injuries have impacted your life 3 The extent of your medical treatment and associated expenses 4 Reasoning as to why the other party is liable for your injuries 5 The amount of income you lost over the accident
The following are some details your attorney may include in your letter: How your injuries were sustained. How your injuries have impacted your life. The extent of your medical treatment and associated expenses.
In some instances, the insurance company may accept your initial demand amount and pay it immediately—although that is relatively rare. More often, securing a settlement you and the insurance company agree upon will require a few months of negotiations.
If a company does not respond – a rare, but not unheard-of occurrence – it is typical to follow up on the demand letter.
The negotiation process can take some time, up to several months. This is, however, a faster, easier, and cheaper process than going through the courts via a lawsuit.
This can be because the litigating party decides to reject the insurance company or defendant’s counteroffer. In rare cases, it can be because the defendant party does not respond to the demand letter in the first place.
Reaching a Settlement. The majority of civil suits settle long before a trial is necessary. The negotiation process is a multifaceted procedure that involves all parties meeting with their respective lawyers and discussing the case. Settlements depend on the strength of each side’s case, and their available resources.
Once a trial date is set, the actual trial can last from a day to several weeks, depending entirely on the schedule of the judge, lawyers and parties. It is common for trials to be rescheduled frequently, often for simple reasons, and this is often why they take more than one day.
The discovery process can take anywhere from six months to a year, and the if the parties cannot reach a settlement, they may go before a mediator to arrange a settlement.
Firm News. The litigation process follows a relatively standard procedure once an attorney meets with a client. As the two negotiate, they determine when an appropriate time to issue demands will be. Initially, they have two choices – issuing a demand letter or going straight to a lawsuit.
That’s often why it’s written by an attorney because you want to be very careful about what is said in a demand letter.
Some people think if they don’t respond, the sender will go away. This is usually not the case — especially if the other party has retained an attorney. Respond and try to resolve the issue or you run the risk of going to court. And courts may not look favorably on those who simply ignore demand letters.
1. A demand letter shows the other party you’re serious. 2. A demand letter is generally seen by the court as a sign of good faith. 3. The information in a demand letter may be used against you. 4. Sending a demand letter can save you money and time in the long run. 5.
Commonly used by businesses, demand letters are often sent to demand money owed or restitution , but they can also be used to demand specific actions.
They can expedite a successful outcome and avoid costly litigation. Even if you do end up filing a lawsuit, a demand letter shows the court that you reasonably tried to work with the other party to settle the problem.
A lawsuit often takes months, if not years. Fifth, don’t ignore a demand letter.
A demand letter does not have to be written by an attorney but a letter coming from a law firm is generally taken more seriously and will provide the protections listed above. 5. Never ignore a demand letter. If you receive one, contact your attorney immediately.
An insurance company denial of an injury claim is a rare occurrence, since most insurance companies want to settle a claim (a sure thing) before courts get involved (an unpredictable process). Denials usually only occur when the claim is clearly unsupported by evidence (the "injured" person has no medical bills or records of treatment) or there is a procedural problem with the claim itself.
You'll receive the compensation you asked for and sign a release of liability in exchange. It is rare for this to happen without at least some negotiation on the part of the insurance company. (Learn more about the timeline of a typical personal injury claim .)