Letter to Carrier Accepting Policy Limits in Contemplation of Bad Faith Claim for Failure to Settle a Claim Within Policy Limits

Dear Insurance Adjuster:

On January 12, 1999 our client was struck with significant force in a broadside collision that occurred because your insured failed to yield the right of way at the intersection of Brown and Green Streets in the City of Portland, Maine. Several witnesses have confirmed that your insured ran a stop sign at such intersection and then collided with our client in a perpendicular fashion, causing a total loss of the vehicles involved.

Our client sustained a fracture of the right tibia which required surgery and the placement of four screws which took place at the Maine Medical Center shortly after the collision. Our client’s reasonable medical bills for surgery, hospital costs, and physical therapy are $32,600 and there is the probability that further medical bills will be incurred, especially for removal of any hardware in our client’s leg. In addition, our client lost 8 weeks of work at an average weekly wage of $700 per week for a total wage loss of $5,600.

Furthermore, our client’s physician, Dr. Douglas Brown, has indicated that our client will incur permanent aspects to his injury, including the probability of at least some permanent impairment. With respect to his activities, he has been unable to play softball for his regular company team (he is a first baseman with a batting average of .340) as well as other activities. His wife has a potential loss of consortium claim in this matter also.

It is our understanding that your policy limits in...