APPENDIX 6 FORM LETTER: ADVISING OF RIGHT TO APPRAISAL

• Jurisdiction: United States

(Date) Re: ___________	Insured: ______________
Policy No: ___________	Claim No: _____________
Date of Loss: _________

Dear ___________________:

We have completed a thorough investigation of your claim. We have reviewed your Sworn Statement in Proof of Loss which makes claim under the above captioned policy of insurance in the amount of $_______________.

Your policy of insurance only requires us to pay indemnity to you within thirty days of the date you and we, as your insurer, agree on the amount of loss or the award of appraisers in accordance with the conditions of the policy.

After completing our thorough investigation of the claim and our review of your Sworn Statement in Proof of Loss it is clear that no agreement can be reached concerning the amount of the loss. Our investigation reveals that the amount of your loss, on an actual cash value basis appears to be no more than $________________ [if a replacement cost provision exists state also: and a full replacement cost loss of no more than $___________, to which you would be entitled once repairs are completed].

Although your insurer is not obligated to make any payments at this time, as an expression of its good faith, we enclose draft No: ________ in the amount of $_____________, the amount we believe to be the actual cash value loss incurred by you. [Add, if a replacement cost provision applies: We will also pay, without prejudice, the additional sum of $_____________, the difference between the actual cash value payment and what we believe to be the full cost of repair and replacement to which you may be entitled once you have proven that repairs have been completed].

The payments made to you are without prejudice to any actions you may wish to take to establish a loss in excess of the amount paid. If you disagree with our conclusions you have the right to demand appraisal in accordance with the "Appraisal" condition...