A set-up demand offers to settle within policy limits but attaches short deadlines, unusual documentation requirements, or delivery conditions that make acceptance impractical. The objective is a technical rejection that supports a later failure-to-settle claim.
Common features include compressed response windows, requirements to produce affidavits or coverage documents on short notice, and terms that do not release all insureds.
Alternative Names:
Manufactured Demand
Why it Matters?
Set-up demands are a mainstream plaintiff tactic in serious injury litigation, and the defense response has to be procedural rather than argumentative. The reliable approach is to treat every within-limits demand as genuine, accept unconditionally where possible, respond in writing before the deadline, request clarification of ambiguous terms promptly, and document every step including notice to the insured.
Frequently Confused with
Related terms
Frequently asked questions
How should a carrier respond to a suspected set-up demand?
Can an impossible condition defeat the duty to settle?
