CALIFORNIA LEGISLATURE 20212022 REGULAR SESSION Senate Bill No. 1155Introduced by Senator CaballeroFebruary 16, 2022 An act to add Chapter 3.2 (commencing with Section 999) to Title 14 of Part 2 to the Code of Civil Procedure, relating to claims settlement. LEGISLATIVE COUNSEL'S DIGESTSB 1155, as introduced, Caballero. Liability claims: time-limited demands.Existing law provides for liability insurance to protect against loss resulting from liability for an injury suffered by a person or for damage to property. Existing case law establishes obligations liability insurers have to the insured, including the duty to indemnify and the duty to defend. Existing law limits damages for a breach of contract to damages proximately caused by or likely to result from the breach and requires these damages to be ascertainable in both their nature and origin. Existing law provides that stipulations that are necessary to make a contract reasonable or conformable to usage but are not contrary to the contracts manifest intention are implied. Existing case law allows for extracontractual damages for a breach of the implied covenant of good faith and fair dealing where an insured unreasonably refused to accept a settlement offer within the policy limits against the insured. Existing law allows any party to serve an offer to allow judgment to be taken or an award to be entered in accordance with specified terms and conditions. If an offer made by the plaintiff is not accepted by the defendant and the defendant fails to obtain a more favorable judgment or award, the court or arbitration may require the defendant to pay a reasonable sum to cover plaintiffs postoffer expert witnesses services, as specified, in addition to plaintiffs costs. This bill would provide a framework for parties to settle a liability claim using a time-limited demand, as specified. The bill would define time-limited demand as any offer to a tortfeasor to settle any claim for personal or bodily injury, property damage, or wrongful death within the tortfeasors liability insurance policy limits. The bill would require a time-limited demand to contain specified information, including the demand must be accepted not more than 45 days from service, the amount of monetary payment demanded, a description of all known injuries sustained by the claimant, and all relevant proof in support of the claim, as specified. The bill would allow a recipient of a demand to accept the demand in writing or, if necessary, to seek clarification or additional information, as specified. The bill would allow a recipient to seek a list of names and addresses of the claimants employers, employment and tax records documenting the claimants wage or profits losses, and written authorizations to allow the liability insurer to obtain those records. The bill would require the insurer to provide a response to the demand within 45 days of service. The bill would allow an insurer to inform the claimant that the insurer is unable to accept a time-limited demand because the claimant failed to provide sufficient information, as specified. The bill would require a claimant to respond to an insurers response within 30 days of service. This bill would not consider a time-limited demand a reasonable offer or admissible in any lawsuit, as specified, if the demand did not strictly comply with these provisions. The bill would state that, in the event a court determines that these provisions conflict with the Civil Discovery Act, that act will prevail.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: NO Local Program: NO Bill TextThe people of the State of California do enact as follows:SECTION 1. Chapter 3.2 (commencing with Section 999) is added to Title 14 of Part 2 of the Code of Civil Procedure, to read: CHAPTER 3.2. Time-Limited Demands999. (a) It is declared to be the public policy of the State of California that prompt settlements of civil actions and claims are encouraged as beneficial to claimants, policyholders, and insurers. Tactics that frustrate settlement, create distrust among parties, and escalate disputes are disfavored, particularly settlement demands where the time provided for acceptance would deprive an insurer of an adequate opportunity to investigate and evaluate its insureds exposure and that are actually designed to open insurance policies beyond their stated limits. Both policyholders and their insurers doing business in this state are entitled to the opportunity to timely and fairly investigate claims presented without the risk of creating additional exposure.(b) For purposes of this section, the following definitions apply:(1) Extracontractual damages means any amount of damage that exceeds the total available limit of liability insurance for all of a liability insurers liability insurance policies applicable to a claim for property damage, personal injury, bodily injury, or wrongful death.(2) Time-limited demand means any offer to settle any claim for personal injury, property damage, bodily injury, or wrongful death made by or on behalf of a claimant to a tortfeasor with a liability insurance policy for purposes of settling a claim against the tortfeasor within the insurers limit of liability insurance, which by its terms must be accepted within a specified period of time.999.1. A time-limited demand to settle any claim shall reference this section, be in writing and labeled as time sensitive, sent certified mail return receipt requested to the claims department of the tortfeasors liability insurer, and shall contain the following material terms:(a) The time period within which the demand must be accepted, which shall be not more than 45 days from service of the demand.(b) The amount of monetary payment demanded.(c) An offer for a complete release from all third-party claimants for the liability insurers insureds from all present and future liability for the occurrence.(d) The date and location of the loss.(e) The claim number, if known.(f) A description of all known injuries sustained by the claimant.(g) All relevant proof in support of the claim, including a list of the names and addresses of health care providers treating or evaluating the claimant or decedent for injuries suffered from the date of injury until the date of the time-limited demand, all pertinent medical bills, reports, and records documenting the alleged injuries and treatment received, loss of earnings documentation, and medical and other relevant liens.999.2. (a) The recipients of a time-limited demand may accept the demand by providing written acceptance of the material terms outlined in Section 999.1 in their entirety.(b) (1) Upon receipt of a time-limited demand, the recipients shall have the right to seek, if necessary, clarification or additional information regarding terms, liens, subrogation claims, standing to release claims, medical bills, medical records, preexisting medical conditions, and other relevant facts. An attempt to seek clarification or a request for an extension due to the need for further information or investigation shall not be deemed a counteroffer or rejection of the demand.(2) Upon receipt of a time-limited demand, the recipients shall have the right to seek a list of the names and addresses of all the claimants employers at the time the claimant was first injured until the date of the time-limited demand, records from employers and tax records documenting any loss of wages, earnings, compensation, or profits claimant or defendant is asserting, and written authorizations sufficient to allow the liability insurer to obtain those records from all employers listed.(c) If an insurer is unable to accept a time-limited demand due to failure to receive sufficient information following requests for additional time and information, the insurer shall notify the claimant that it cannot accept the demand with an itemized list of remaining factual deficiencies. This notification shall be relevant as part of the admissibility rules set forth in Section 999.3.(d) The insurer shall provide a response within 45 days of service of the time-limited demand.(e) The claimant shall have 30 days from service of the insurers response to respond to the request for additional time, information, or clarification.999.3. (a) In any lawsuit filed by a claimant, or by a claimant as an assignee of the tortfeasor or by the tortfeasor for the benefit of the claimant, a time-limited demand that does not strictly comply with the terms of this chapter shall not be considered to be a reasonable offer to settle the claims against the tortfeasor for an amount within the insurance policy limits and shall not be admissible in any lawsuit alleging extracontractual damages against the tortfeasors liability insurer.(b) In the event a court determines that this chapter conflicts with the Civil Discovery Act, (Title 4 (commencing with Section 2016.010) of Part 4), the Civil Discovery Act shall prevail.999.4. This chapter shall apply to causes of action and claims for property damage, personal injury, bodily injury and death, and other damages claimed that are potentially covered under a liability insurance policy.
CALIFORNIA LEGISLATURE 20212022 REGULAR SESSION Senate Bill No. 1155Introduced by Senator CaballeroFebruary 16, 2022 An act to add Chapter 3.2 (commencing with Section 999) to Title 14 of Part 2 to the Code of Civil Procedure, relating to claims settlement. LEGISLATIVE COUNSEL'S DIGESTSB 1155, as introduced, Caballero. Liability claims: time-limited demands.Existing law provides for liability insurance to protect against loss resulting from liability for an injury suffered by a person or for damage to property. Existing case law establishes obligations liability insurers have to the insured, including the duty to indemnify and the duty to defend. Existing law limits damages for a breach of contract to damages proximately caused by or likely to result from the breach and requires these damages to be ascertainable in both their nature and origin. Existing law provides that stipulations that are necessary to make a contract reasonable or conformable to usage but are not contrary to the contracts manifest intention are implied. Existing case law allows for extracontractual damages for a breach of the implied covenant of good faith and fair dealing where an insured unreasonably refused to accept a settlement offer within the policy limits against the insured. Existing law allows any party to serve an offer to allow judgment to be taken or an award to be entered in accordance with specified terms and conditions. If an offer made by the plaintiff is not accepted by the defendant and the defendant fails to obtain a more favorable judgment or award, the court or arbitration may require the defendant to pay a reasonable sum to cover plaintiffs postoffer expert witnesses services, as specified, in addition to plaintiffs costs. This bill would provide a framework for parties to settle a liability claim using a time-limited demand, as specified. The bill would define time-limited demand as any offer to a tortfeasor to settle any claim for personal or bodily injury, property damage, or wrongful death within the tortfeasors liability insurance policy limits. The bill would require a time-limited demand to contain specified information, including the demand must be accepted not more than 45 days from service, the amount of monetary payment demanded, a description of all known injuries sustained by the claimant, and all relevant proof in support of the claim, as specified. The bill would allow a recipient of a demand to accept the demand in writing or, if necessary, to seek clarification or additional information, as specified. The bill would allow a recipient to seek a list of names and addresses of the claimants employers, employment and tax records documenting the claimants wage or profits losses, and written authorizations to allow the liability insurer to obtain those records. The bill would require the insurer to provide a response to the demand within 45 days of service. The bill would allow an insurer to inform the claimant that the insurer is unable to accept a time-limited demand because the claimant failed to provide sufficient information, as specified. The bill would require a claimant to respond to an insurers response within 30 days of service. This bill would not consider a time-limited demand a reasonable offer or admissible in any lawsuit, as specified, if the demand did not strictly comply with these provisions. The bill would state that, in the event a court determines that these provisions conflict with the Civil Discovery Act, that act will prevail.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: NO Local Program: NO
CALIFORNIA LEGISLATURE 20212022 REGULAR SESSION
Senate Bill
No. 1155
Introduced by Senator CaballeroFebruary 16, 2022
Introduced by Senator Caballero
February 16, 2022
An act to add Chapter 3.2 (commencing with Section 999) to Title 14 of Part 2 to the Code of Civil Procedure, relating to claims settlement.
LEGISLATIVE COUNSEL'S DIGEST
## LEGISLATIVE COUNSEL'S DIGEST
SB 1155, as introduced, Caballero. Liability claims: time-limited demands.
Existing law provides for liability insurance to protect against loss resulting from liability for an injury suffered by a person or for damage to property. Existing case law establishes obligations liability insurers have to the insured, including the duty to indemnify and the duty to defend. Existing law limits damages for a breach of contract to damages proximately caused by or likely to result from the breach and requires these damages to be ascertainable in both their nature and origin. Existing law provides that stipulations that are necessary to make a contract reasonable or conformable to usage but are not contrary to the contracts manifest intention are implied. Existing case law allows for extracontractual damages for a breach of the implied covenant of good faith and fair dealing where an insured unreasonably refused to accept a settlement offer within the policy limits against the insured. Existing law allows any party to serve an offer to allow judgment to be taken or an award to be entered in accordance with specified terms and conditions. If an offer made by the plaintiff is not accepted by the defendant and the defendant fails to obtain a more favorable judgment or award, the court or arbitration may require the defendant to pay a reasonable sum to cover plaintiffs postoffer expert witnesses services, as specified, in addition to plaintiffs costs. This bill would provide a framework for parties to settle a liability claim using a time-limited demand, as specified. The bill would define time-limited demand as any offer to a tortfeasor to settle any claim for personal or bodily injury, property damage, or wrongful death within the tortfeasors liability insurance policy limits. The bill would require a time-limited demand to contain specified information, including the demand must be accepted not more than 45 days from service, the amount of monetary payment demanded, a description of all known injuries sustained by the claimant, and all relevant proof in support of the claim, as specified. The bill would allow a recipient of a demand to accept the demand in writing or, if necessary, to seek clarification or additional information, as specified. The bill would allow a recipient to seek a list of names and addresses of the claimants employers, employment and tax records documenting the claimants wage or profits losses, and written authorizations to allow the liability insurer to obtain those records. The bill would require the insurer to provide a response to the demand within 45 days of service. The bill would allow an insurer to inform the claimant that the insurer is unable to accept a time-limited demand because the claimant failed to provide sufficient information, as specified. The bill would require a claimant to respond to an insurers response within 30 days of service. This bill would not consider a time-limited demand a reasonable offer or admissible in any lawsuit, as specified, if the demand did not strictly comply with these provisions. The bill would state that, in the event a court determines that these provisions conflict with the Civil Discovery Act, that act will prevail.
Existing law provides for liability insurance to protect against loss resulting from liability for an injury suffered by a person or for damage to property. Existing case law establishes obligations liability insurers have to the insured, including the duty to indemnify and the duty to defend. Existing law limits damages for a breach of contract to damages proximately caused by or likely to result from the breach and requires these damages to be ascertainable in both their nature and origin. Existing law provides that stipulations that are necessary to make a contract reasonable or conformable to usage but are not contrary to the contracts manifest intention are implied. Existing case law allows for extracontractual damages for a breach of the implied covenant of good faith and fair dealing where an insured unreasonably refused to accept a settlement offer within the policy limits against the insured. Existing law allows any party to serve an offer to allow judgment to be taken or an award to be entered in accordance with specified terms and conditions. If an offer made by the plaintiff is not accepted by the defendant and the defendant fails to obtain a more favorable judgment or award, the court or arbitration may require the defendant to pay a reasonable sum to cover plaintiffs postoffer expert witnesses services, as specified, in addition to plaintiffs costs.
This bill would provide a framework for parties to settle a liability claim using a time-limited demand, as specified. The bill would define time-limited demand as any offer to a tortfeasor to settle any claim for personal or bodily injury, property damage, or wrongful death within the tortfeasors liability insurance policy limits. The bill would require a time-limited demand to contain specified information, including the demand must be accepted not more than 45 days from service, the amount of monetary payment demanded, a description of all known injuries sustained by the claimant, and all relevant proof in support of the claim, as specified. The bill would allow a recipient of a demand to accept the demand in writing or, if necessary, to seek clarification or additional information, as specified. The bill would allow a recipient to seek a list of names and addresses of the claimants employers, employment and tax records documenting the claimants wage or profits losses, and written authorizations to allow the liability insurer to obtain those records. The bill would require the insurer to provide a response to the demand within 45 days of service. The bill would allow an insurer to inform the claimant that the insurer is unable to accept a time-limited demand because the claimant failed to provide sufficient information, as specified. The bill would require a claimant to respond to an insurers response within 30 days of service.
This bill would not consider a time-limited demand a reasonable offer or admissible in any lawsuit, as specified, if the demand did not strictly comply with these provisions. The bill would state that, in the event a court determines that these provisions conflict with the Civil Discovery Act, that act will prevail.
## Digest Key
## Bill Text
The people of the State of California do enact as follows:SECTION 1. Chapter 3.2 (commencing with Section 999) is added to Title 14 of Part 2 of the Code of Civil Procedure, to read: CHAPTER 3.2. Time-Limited Demands999. (a) It is declared to be the public policy of the State of California that prompt settlements of civil actions and claims are encouraged as beneficial to claimants, policyholders, and insurers. Tactics that frustrate settlement, create distrust among parties, and escalate disputes are disfavored, particularly settlement demands where the time provided for acceptance would deprive an insurer of an adequate opportunity to investigate and evaluate its insureds exposure and that are actually designed to open insurance policies beyond their stated limits. Both policyholders and their insurers doing business in this state are entitled to the opportunity to timely and fairly investigate claims presented without the risk of creating additional exposure.(b) For purposes of this section, the following definitions apply:(1) Extracontractual damages means any amount of damage that exceeds the total available limit of liability insurance for all of a liability insurers liability insurance policies applicable to a claim for property damage, personal injury, bodily injury, or wrongful death.(2) Time-limited demand means any offer to settle any claim for personal injury, property damage, bodily injury, or wrongful death made by or on behalf of a claimant to a tortfeasor with a liability insurance policy for purposes of settling a claim against the tortfeasor within the insurers limit of liability insurance, which by its terms must be accepted within a specified period of time.999.1. A time-limited demand to settle any claim shall reference this section, be in writing and labeled as time sensitive, sent certified mail return receipt requested to the claims department of the tortfeasors liability insurer, and shall contain the following material terms:(a) The time period within which the demand must be accepted, which shall be not more than 45 days from service of the demand.(b) The amount of monetary payment demanded.(c) An offer for a complete release from all third-party claimants for the liability insurers insureds from all present and future liability for the occurrence.(d) The date and location of the loss.(e) The claim number, if known.(f) A description of all known injuries sustained by the claimant.(g) All relevant proof in support of the claim, including a list of the names and addresses of health care providers treating or evaluating the claimant or decedent for injuries suffered from the date of injury until the date of the time-limited demand, all pertinent medical bills, reports, and records documenting the alleged injuries and treatment received, loss of earnings documentation, and medical and other relevant liens.999.2. (a) The recipients of a time-limited demand may accept the demand by providing written acceptance of the material terms outlined in Section 999.1 in their entirety.(b) (1) Upon receipt of a time-limited demand, the recipients shall have the right to seek, if necessary, clarification or additional information regarding terms, liens, subrogation claims, standing to release claims, medical bills, medical records, preexisting medical conditions, and other relevant facts. An attempt to seek clarification or a request for an extension due to the need for further information or investigation shall not be deemed a counteroffer or rejection of the demand.(2) Upon receipt of a time-limited demand, the recipients shall have the right to seek a list of the names and addresses of all the claimants employers at the time the claimant was first injured until the date of the time-limited demand, records from employers and tax records documenting any loss of wages, earnings, compensation, or profits claimant or defendant is asserting, and written authorizations sufficient to allow the liability insurer to obtain those records from all employers listed.(c) If an insurer is unable to accept a time-limited demand due to failure to receive sufficient information following requests for additional time and information, the insurer shall notify the claimant that it cannot accept the demand with an itemized list of remaining factual deficiencies. This notification shall be relevant as part of the admissibility rules set forth in Section 999.3.(d) The insurer shall provide a response within 45 days of service of the time-limited demand.(e) The claimant shall have 30 days from service of the insurers response to respond to the request for additional time, information, or clarification.999.3. (a) In any lawsuit filed by a claimant, or by a claimant as an assignee of the tortfeasor or by the tortfeasor for the benefit of the claimant, a time-limited demand that does not strictly comply with the terms of this chapter shall not be considered to be a reasonable offer to settle the claims against the tortfeasor for an amount within the insurance policy limits and shall not be admissible in any lawsuit alleging extracontractual damages against the tortfeasors liability insurer.(b) In the event a court determines that this chapter conflicts with the Civil Discovery Act, (Title 4 (commencing with Section 2016.010) of Part 4), the Civil Discovery Act shall prevail.999.4. This chapter shall apply to causes of action and claims for property damage, personal injury, bodily injury and death, and other damages claimed that are potentially covered under a liability insurance policy.
The people of the State of California do enact as follows:
## The people of the State of California do enact as follows:
SECTION 1. Chapter 3.2 (commencing with Section 999) is added to Title 14 of Part 2 of the Code of Civil Procedure, to read: CHAPTER 3.2. Time-Limited Demands999. (a) It is declared to be the public policy of the State of California that prompt settlements of civil actions and claims are encouraged as beneficial to claimants, policyholders, and insurers. Tactics that frustrate settlement, create distrust among parties, and escalate disputes are disfavored, particularly settlement demands where the time provided for acceptance would deprive an insurer of an adequate opportunity to investigate and evaluate its insureds exposure and that are actually designed to open insurance policies beyond their stated limits. Both policyholders and their insurers doing business in this state are entitled to the opportunity to timely and fairly investigate claims presented without the risk of creating additional exposure.(b) For purposes of this section, the following definitions apply:(1) Extracontractual damages means any amount of damage that exceeds the total available limit of liability insurance for all of a liability insurers liability insurance policies applicable to a claim for property damage, personal injury, bodily injury, or wrongful death.(2) Time-limited demand means any offer to settle any claim for personal injury, property damage, bodily injury, or wrongful death made by or on behalf of a claimant to a tortfeasor with a liability insurance policy for purposes of settling a claim against the tortfeasor within the insurers limit of liability insurance, which by its terms must be accepted within a specified period of time.999.1. A time-limited demand to settle any claim shall reference this section, be in writing and labeled as time sensitive, sent certified mail return receipt requested to the claims department of the tortfeasors liability insurer, and shall contain the following material terms:(a) The time period within which the demand must be accepted, which shall be not more than 45 days from service of the demand.(b) The amount of monetary payment demanded.(c) An offer for a complete release from all third-party claimants for the liability insurers insureds from all present and future liability for the occurrence.(d) The date and location of the loss.(e) The claim number, if known.(f) A description of all known injuries sustained by the claimant.(g) All relevant proof in support of the claim, including a list of the names and addresses of health care providers treating or evaluating the claimant or decedent for injuries suffered from the date of injury until the date of the time-limited demand, all pertinent medical bills, reports, and records documenting the alleged injuries and treatment received, loss of earnings documentation, and medical and other relevant liens.999.2. (a) The recipients of a time-limited demand may accept the demand by providing written acceptance of the material terms outlined in Section 999.1 in their entirety.(b) (1) Upon receipt of a time-limited demand, the recipients shall have the right to seek, if necessary, clarification or additional information regarding terms, liens, subrogation claims, standing to release claims, medical bills, medical records, preexisting medical conditions, and other relevant facts. An attempt to seek clarification or a request for an extension due to the need for further information or investigation shall not be deemed a counteroffer or rejection of the demand.(2) Upon receipt of a time-limited demand, the recipients shall have the right to seek a list of the names and addresses of all the claimants employers at the time the claimant was first injured until the date of the time-limited demand, records from employers and tax records documenting any loss of wages, earnings, compensation, or profits claimant or defendant is asserting, and written authorizations sufficient to allow the liability insurer to obtain those records from all employers listed.(c) If an insurer is unable to accept a time-limited demand due to failure to receive sufficient information following requests for additional time and information, the insurer shall notify the claimant that it cannot accept the demand with an itemized list of remaining factual deficiencies. This notification shall be relevant as part of the admissibility rules set forth in Section 999.3.(d) The insurer shall provide a response within 45 days of service of the time-limited demand.(e) The claimant shall have 30 days from service of the insurers response to respond to the request for additional time, information, or clarification.999.3. (a) In any lawsuit filed by a claimant, or by a claimant as an assignee of the tortfeasor or by the tortfeasor for the benefit of the claimant, a time-limited demand that does not strictly comply with the terms of this chapter shall not be considered to be a reasonable offer to settle the claims against the tortfeasor for an amount within the insurance policy limits and shall not be admissible in any lawsuit alleging extracontractual damages against the tortfeasors liability insurer.(b) In the event a court determines that this chapter conflicts with the Civil Discovery Act, (Title 4 (commencing with Section 2016.010) of Part 4), the Civil Discovery Act shall prevail.999.4. This chapter shall apply to causes of action and claims for property damage, personal injury, bodily injury and death, and other damages claimed that are potentially covered under a liability insurance policy.
SECTION 1. Chapter 3.2 (commencing with Section 999) is added to Title 14 of Part 2 of the Code of Civil Procedure, to read:
### SECTION 1.
CHAPTER 3.2. Time-Limited Demands999. (a) It is declared to be the public policy of the State of California that prompt settlements of civil actions and claims are encouraged as beneficial to claimants, policyholders, and insurers. Tactics that frustrate settlement, create distrust among parties, and escalate disputes are disfavored, particularly settlement demands where the time provided for acceptance would deprive an insurer of an adequate opportunity to investigate and evaluate its insureds exposure and that are actually designed to open insurance policies beyond their stated limits. Both policyholders and their insurers doing business in this state are entitled to the opportunity to timely and fairly investigate claims presented without the risk of creating additional exposure.(b) For purposes of this section, the following definitions apply:(1) Extracontractual damages means any amount of damage that exceeds the total available limit of liability insurance for all of a liability insurers liability insurance policies applicable to a claim for property damage, personal injury, bodily injury, or wrongful death.(2) Time-limited demand means any offer to settle any claim for personal injury, property damage, bodily injury, or wrongful death made by or on behalf of a claimant to a tortfeasor with a liability insurance policy for purposes of settling a claim against the tortfeasor within the insurers limit of liability insurance, which by its terms must be accepted within a specified period of time.999.1. A time-limited demand to settle any claim shall reference this section, be in writing and labeled as time sensitive, sent certified mail return receipt requested to the claims department of the tortfeasors liability insurer, and shall contain the following material terms:(a) The time period within which the demand must be accepted, which shall be not more than 45 days from service of the demand.(b) The amount of monetary payment demanded.(c) An offer for a complete release from all third-party claimants for the liability insurers insureds from all present and future liability for the occurrence.(d) The date and location of the loss.(e) The claim number, if known.(f) A description of all known injuries sustained by the claimant.(g) All relevant proof in support of the claim, including a list of the names and addresses of health care providers treating or evaluating the claimant or decedent for injuries suffered from the date of injury until the date of the time-limited demand, all pertinent medical bills, reports, and records documenting the alleged injuries and treatment received, loss of earnings documentation, and medical and other relevant liens.999.2. (a) The recipients of a time-limited demand may accept the demand by providing written acceptance of the material terms outlined in Section 999.1 in their entirety.(b) (1) Upon receipt of a time-limited demand, the recipients shall have the right to seek, if necessary, clarification or additional information regarding terms, liens, subrogation claims, standing to release claims, medical bills, medical records, preexisting medical conditions, and other relevant facts. An attempt to seek clarification or a request for an extension due to the need for further information or investigation shall not be deemed a counteroffer or rejection of the demand.(2) Upon receipt of a time-limited demand, the recipients shall have the right to seek a list of the names and addresses of all the claimants employers at the time the claimant was first injured until the date of the time-limited demand, records from employers and tax records documenting any loss of wages, earnings, compensation, or profits claimant or defendant is asserting, and written authorizations sufficient to allow the liability insurer to obtain those records from all employers listed.(c) If an insurer is unable to accept a time-limited demand due to failure to receive sufficient information following requests for additional time and information, the insurer shall notify the claimant that it cannot accept the demand with an itemized list of remaining factual deficiencies. This notification shall be relevant as part of the admissibility rules set forth in Section 999.3.(d) The insurer shall provide a response within 45 days of service of the time-limited demand.(e) The claimant shall have 30 days from service of the insurers response to respond to the request for additional time, information, or clarification.999.3. (a) In any lawsuit filed by a claimant, or by a claimant as an assignee of the tortfeasor or by the tortfeasor for the benefit of the claimant, a time-limited demand that does not strictly comply with the terms of this chapter shall not be considered to be a reasonable offer to settle the claims against the tortfeasor for an amount within the insurance policy limits and shall not be admissible in any lawsuit alleging extracontractual damages against the tortfeasors liability insurer.(b) In the event a court determines that this chapter conflicts with the Civil Discovery Act, (Title 4 (commencing with Section 2016.010) of Part 4), the Civil Discovery Act shall prevail.999.4. This chapter shall apply to causes of action and claims for property damage, personal injury, bodily injury and death, and other damages claimed that are potentially covered under a liability insurance policy.
CHAPTER 3.2. Time-Limited Demands999. (a) It is declared to be the public policy of the State of California that prompt settlements of civil actions and claims are encouraged as beneficial to claimants, policyholders, and insurers. Tactics that frustrate settlement, create distrust among parties, and escalate disputes are disfavored, particularly settlement demands where the time provided for acceptance would deprive an insurer of an adequate opportunity to investigate and evaluate its insureds exposure and that are actually designed to open insurance policies beyond their stated limits. Both policyholders and their insurers doing business in this state are entitled to the opportunity to timely and fairly investigate claims presented without the risk of creating additional exposure.(b) For purposes of this section, the following definitions apply:(1) Extracontractual damages means any amount of damage that exceeds the total available limit of liability insurance for all of a liability insurers liability insurance policies applicable to a claim for property damage, personal injury, bodily injury, or wrongful death.(2) Time-limited demand means any offer to settle any claim for personal injury, property damage, bodily injury, or wrongful death made by or on behalf of a claimant to a tortfeasor with a liability insurance policy for purposes of settling a claim against the tortfeasor within the insurers limit of liability insurance, which by its terms must be accepted within a specified period of time.999.1. A time-limited demand to settle any claim shall reference this section, be in writing and labeled as time sensitive, sent certified mail return receipt requested to the claims department of the tortfeasors liability insurer, and shall contain the following material terms:(a) The time period within which the demand must be accepted, which shall be not more than 45 days from service of the demand.(b) The amount of monetary payment demanded.(c) An offer for a complete release from all third-party claimants for the liability insurers insureds from all present and future liability for the occurrence.(d) The date and location of the loss.(e) The claim number, if known.(f) A description of all known injuries sustained by the claimant.(g) All relevant proof in support of the claim, including a list of the names and addresses of health care providers treating or evaluating the claimant or decedent for injuries suffered from the date of injury until the date of the time-limited demand, all pertinent medical bills, reports, and records documenting the alleged injuries and treatment received, loss of earnings documentation, and medical and other relevant liens.999.2. (a) The recipients of a time-limited demand may accept the demand by providing written acceptance of the material terms outlined in Section 999.1 in their entirety.(b) (1) Upon receipt of a time-limited demand, the recipients shall have the right to seek, if necessary, clarification or additional information regarding terms, liens, subrogation claims, standing to release claims, medical bills, medical records, preexisting medical conditions, and other relevant facts. An attempt to seek clarification or a request for an extension due to the need for further information or investigation shall not be deemed a counteroffer or rejection of the demand.(2) Upon receipt of a time-limited demand, the recipients shall have the right to seek a list of the names and addresses of all the claimants employers at the time the claimant was first injured until the date of the time-limited demand, records from employers and tax records documenting any loss of wages, earnings, compensation, or profits claimant or defendant is asserting, and written authorizations sufficient to allow the liability insurer to obtain those records from all employers listed.(c) If an insurer is unable to accept a time-limited demand due to failure to receive sufficient information following requests for additional time and information, the insurer shall notify the claimant that it cannot accept the demand with an itemized list of remaining factual deficiencies. This notification shall be relevant as part of the admissibility rules set forth in Section 999.3.(d) The insurer shall provide a response within 45 days of service of the time-limited demand.(e) The claimant shall have 30 days from service of the insurers response to respond to the request for additional time, information, or clarification.999.3. (a) In any lawsuit filed by a claimant, or by a claimant as an assignee of the tortfeasor or by the tortfeasor for the benefit of the claimant, a time-limited demand that does not strictly comply with the terms of this chapter shall not be considered to be a reasonable offer to settle the claims against the tortfeasor for an amount within the insurance policy limits and shall not be admissible in any lawsuit alleging extracontractual damages against the tortfeasors liability insurer.(b) In the event a court determines that this chapter conflicts with the Civil Discovery Act, (Title 4 (commencing with Section 2016.010) of Part 4), the Civil Discovery Act shall prevail.999.4. This chapter shall apply to causes of action and claims for property damage, personal injury, bodily injury and death, and other damages claimed that are potentially covered under a liability insurance policy.
CHAPTER 3.2. Time-Limited Demands
CHAPTER 3.2. Time-Limited Demands
999. (a) It is declared to be the public policy of the State of California that prompt settlements of civil actions and claims are encouraged as beneficial to claimants, policyholders, and insurers. Tactics that frustrate settlement, create distrust among parties, and escalate disputes are disfavored, particularly settlement demands where the time provided for acceptance would deprive an insurer of an adequate opportunity to investigate and evaluate its insureds exposure and that are actually designed to open insurance policies beyond their stated limits. Both policyholders and their insurers doing business in this state are entitled to the opportunity to timely and fairly investigate claims presented without the risk of creating additional exposure.(b) For purposes of this section, the following definitions apply:(1) Extracontractual damages means any amount of damage that exceeds the total available limit of liability insurance for all of a liability insurers liability insurance policies applicable to a claim for property damage, personal injury, bodily injury, or wrongful death.(2) Time-limited demand means any offer to settle any claim for personal injury, property damage, bodily injury, or wrongful death made by or on behalf of a claimant to a tortfeasor with a liability insurance policy for purposes of settling a claim against the tortfeasor within the insurers limit of liability insurance, which by its terms must be accepted within a specified period of time.
999. (a) It is declared to be the public policy of the State of California that prompt settlements of civil actions and claims are encouraged as beneficial to claimants, policyholders, and insurers. Tactics that frustrate settlement, create distrust among parties, and escalate disputes are disfavored, particularly settlement demands where the time provided for acceptance would deprive an insurer of an adequate opportunity to investigate and evaluate its insureds exposure and that are actually designed to open insurance policies beyond their stated limits. Both policyholders and their insurers doing business in this state are entitled to the opportunity to timely and fairly investigate claims presented without the risk of creating additional exposure.
(b) For purposes of this section, the following definitions apply:
(1) Extracontractual damages means any amount of damage that exceeds the total available limit of liability insurance for all of a liability insurers liability insurance policies applicable to a claim for property damage, personal injury, bodily injury, or wrongful death.
(2) Time-limited demand means any offer to settle any claim for personal injury, property damage, bodily injury, or wrongful death made by or on behalf of a claimant to a tortfeasor with a liability insurance policy for purposes of settling a claim against the tortfeasor within the insurers limit of liability insurance, which by its terms must be accepted within a specified period of time.
999.1. A time-limited demand to settle any claim shall reference this section, be in writing and labeled as time sensitive, sent certified mail return receipt requested to the claims department of the tortfeasors liability insurer, and shall contain the following material terms:(a) The time period within which the demand must be accepted, which shall be not more than 45 days from service of the demand.(b) The amount of monetary payment demanded.(c) An offer for a complete release from all third-party claimants for the liability insurers insureds from all present and future liability for the occurrence.(d) The date and location of the loss.(e) The claim number, if known.(f) A description of all known injuries sustained by the claimant.(g) All relevant proof in support of the claim, including a list of the names and addresses of health care providers treating or evaluating the claimant or decedent for injuries suffered from the date of injury until the date of the time-limited demand, all pertinent medical bills, reports, and records documenting the alleged injuries and treatment received, loss of earnings documentation, and medical and other relevant liens.
999.1. A time-limited demand to settle any claim shall reference this section, be in writing and labeled as time sensitive, sent certified mail return receipt requested to the claims department of the tortfeasors liability insurer, and shall contain the following material terms:
(a) The time period within which the demand must be accepted, which shall be not more than 45 days from service of the demand.
(b) The amount of monetary payment demanded.
(c) An offer for a complete release from all third-party claimants for the liability insurers insureds from all present and future liability for the occurrence.
(d) The date and location of the loss.
(e) The claim number, if known.
(f) A description of all known injuries sustained by the claimant.
(g) All relevant proof in support of the claim, including a list of the names and addresses of health care providers treating or evaluating the claimant or decedent for injuries suffered from the date of injury until the date of the time-limited demand, all pertinent medical bills, reports, and records documenting the alleged injuries and treatment received, loss of earnings documentation, and medical and other relevant liens.
999.2. (a) The recipients of a time-limited demand may accept the demand by providing written acceptance of the material terms outlined in Section 999.1 in their entirety.(b) (1) Upon receipt of a time-limited demand, the recipients shall have the right to seek, if necessary, clarification or additional information regarding terms, liens, subrogation claims, standing to release claims, medical bills, medical records, preexisting medical conditions, and other relevant facts. An attempt to seek clarification or a request for an extension due to the need for further information or investigation shall not be deemed a counteroffer or rejection of the demand.(2) Upon receipt of a time-limited demand, the recipients shall have the right to seek a list of the names and addresses of all the claimants employers at the time the claimant was first injured until the date of the time-limited demand, records from employers and tax records documenting any loss of wages, earnings, compensation, or profits claimant or defendant is asserting, and written authorizations sufficient to allow the liability insurer to obtain those records from all employers listed.(c) If an insurer is unable to accept a time-limited demand due to failure to receive sufficient information following requests for additional time and information, the insurer shall notify the claimant that it cannot accept the demand with an itemized list of remaining factual deficiencies. This notification shall be relevant as part of the admissibility rules set forth in Section 999.3.(d) The insurer shall provide a response within 45 days of service of the time-limited demand.(e) The claimant shall have 30 days from service of the insurers response to respond to the request for additional time, information, or clarification.
999.2. (a) The recipients of a time-limited demand may accept the demand by providing written acceptance of the material terms outlined in Section 999.1 in their entirety.
(b) (1) Upon receipt of a time-limited demand, the recipients shall have the right to seek, if necessary, clarification or additional information regarding terms, liens, subrogation claims, standing to release claims, medical bills, medical records, preexisting medical conditions, and other relevant facts. An attempt to seek clarification or a request for an extension due to the need for further information or investigation shall not be deemed a counteroffer or rejection of the demand.
(2) Upon receipt of a time-limited demand, the recipients shall have the right to seek a list of the names and addresses of all the claimants employers at the time the claimant was first injured until the date of the time-limited demand, records from employers and tax records documenting any loss of wages, earnings, compensation, or profits claimant or defendant is asserting, and written authorizations sufficient to allow the liability insurer to obtain those records from all employers listed.
(c) If an insurer is unable to accept a time-limited demand due to failure to receive sufficient information following requests for additional time and information, the insurer shall notify the claimant that it cannot accept the demand with an itemized list of remaining factual deficiencies. This notification shall be relevant as part of the admissibility rules set forth in Section 999.3.
(d) The insurer shall provide a response within 45 days of service of the time-limited demand.
(e) The claimant shall have 30 days from service of the insurers response to respond to the request for additional time, information, or clarification.
999.3. (a) In any lawsuit filed by a claimant, or by a claimant as an assignee of the tortfeasor or by the tortfeasor for the benefit of the claimant, a time-limited demand that does not strictly comply with the terms of this chapter shall not be considered to be a reasonable offer to settle the claims against the tortfeasor for an amount within the insurance policy limits and shall not be admissible in any lawsuit alleging extracontractual damages against the tortfeasors liability insurer.(b) In the event a court determines that this chapter conflicts with the Civil Discovery Act, (Title 4 (commencing with Section 2016.010) of Part 4), the Civil Discovery Act shall prevail.
999.3. (a) In any lawsuit filed by a claimant, or by a claimant as an assignee of the tortfeasor or by the tortfeasor for the benefit of the claimant, a time-limited demand that does not strictly comply with the terms of this chapter shall not be considered to be a reasonable offer to settle the claims against the tortfeasor for an amount within the insurance policy limits and shall not be admissible in any lawsuit alleging extracontractual damages against the tortfeasors liability insurer.
(b) In the event a court determines that this chapter conflicts with the Civil Discovery Act, (Title 4 (commencing with Section 2016.010) of Part 4), the Civil Discovery Act shall prevail.
999.4. This chapter shall apply to causes of action and claims for property damage, personal injury, bodily injury and death, and other damages claimed that are potentially covered under a liability insurance policy.
999.4. This chapter shall apply to causes of action and claims for property damage, personal injury, bodily injury and death, and other damages claimed that are potentially covered under a liability insurance policy.