Insurance Company Saved $5.3 Million Dollars Due to Lack of Valid Settlement Offer by Claimant

First Acceptance Insurance Company of Georgia insured the at-fault party in a serious automobile accident involving multiple claimants with significant injuries. The policy limits of First Acceptance’s policy was $50,000. Two of the many claimants made demands on First Acceptance to tender limits and settle their claims. First Acceptance failed to respond to this correspondence, and instead, attempted to reach a global resolution with all claimants. A little more than a month following this initial demand, the two claimants filed suit against the estate of the deceased at-fault driver, First Acceptance’s insured. A jury awarded them over $5.3 million in damages.  The policyholder’s Estate sued First Acceptance seeking to hold First Acceptance liable for the amount of the verdict in excess of its policy limit for its failure to settle the claim within policy limits when it had the chance. First Acceptance argued that the injured claimant’s correspondence was not a time-limited settlement demand, and therefore, its actions in continuing to try to resolve all of the claims was reasonable and not undertaken in bad faith. The case made its way to the Georgia Supreme Court which ruled in favor of the insurance company. Read the details of the case and why it’s important to pay close attention to the language in correspondence from injured parties.