A time-limited demand offers to settle, usually within policy limits, on the condition that the offer be accepted by a specified deadline. Windows are frequently short, sometimes ten to thirty days, and may require specific documentation or affidavits.
If the demand is refused or the deadline passes and a verdict later exceeds limits, the claimant argues the insurer's failure to accept exposes it to the excess.
Alternative Names:
TLD, Deadline Demand
Why it Matters?
This is the single highest-consequence document a defense firm receives. The response obligation attaches immediately even when liability investigation is incomplete, and the record created in the first two weeks determines the carrier's bad faith exposure for the life of the case. Every demand should be logged, calendared, evaluated, and answered in writing before expiry, with the insured notified of the exposure.
Frequently Confused with
Related terms
Frequently asked questions
What if the deadline is too short to investigate?
Are statutory demand requirements uniform?
