Evaluating Time-Limited Demands: Insurer Best Practices for Avoiding Bad Faith When Formulating a Response
Common Themes in Time-Limited Demands, Bad Faith Traps to Avoid, Tried and True Approaches

Course Details
- smart_display Format
On-Demand
- signal_cellular_alt Difficulty Level
Intermediate
- work Practice Area
Insurance
- event Date
Thursday, March 27, 2025
- schedule Time
1:00 p.m. ET./10:00 a.m. PT
- timer Program Length
90 minutes
-
This 90-minute webinar is eligible in most states for 1.5 CLE credits.
This CLE webinar will offer attorneys advising insurers recommendations and best practices for evaluating whether a time-limited demand triggers the insurer's duty to settle and then propose best practices for formulating a response that demonstrates the insurer's good faith. The program will identify common characteristics of time-limited demands, address less than obvious bad faith traps to avoid, and offer some tried and true approaches for acting in good faith and being able to demonstrate it.
Faculty

Regarded by clients as their “chief contact for high-exposure work,” Ms. Hudgins helps policyholders maximize their available insurance recoveries. She has litigated hundreds of insurance coverage and bad faith disputes in state and federal courts across the country and U.S. territories. Yet, as a seasoned litigator, she also recognizes the strategic and financial value of pre-suit resolutions, helping clients navigate risk to maximize their recoveries. Ms. Hudgins has been involved in a wide variety of unique cases, like parasailing-related injuries, fraternity party injuries, blockades at the Indian-Nepali border, mass livestock deaths, exploding e-cigarettes, art provenance investigations, and free-fall drops at county fairs. Her practice spans catastrophic injury claims (premises, workplace, auto, trucking, aviation, environmental, firearm, opioid, extreme sports, and entertainment), property damage disputes (natural disasters and builder’s risk), C-suite subpoenas and investigations, art provenance issues, and trade credit claims.
Ms. Dinneen concentrates her practice on the representation of insurers in bad faith litigation, catastrophe/mass tort defense, insurance fraud, and insurance coverage matters. She also has experience defending Jones Act and LHWCA claims. Ms. Dinneen is a frequent speaker on bad faith insurance topics.

Mr. Walton serves as coverage and litigation counsel to domestic and international insurers in a variety of complex insurance coverage matters, including third-party and first-party coverage matters. He regularly provides his clients with comprehensive coverage analysis in coverage disputes involving primary and excess general liability, professional liability, admiralty, and first-party property claims. Mr. Walton also has experience litigating contested coverage cases relating to the pharmaceutical industry, including regulatory investigations and proceedings and multidistrict litigation, as well as matters involving opioid litigation, sexual harassment claims, property damage claims and coverage issues arising from construction defects and construction site accidents. He also has experience litigating issues relating to late notice, relatedness of claims, allocation and the scope of the insurer’s duty to defend.
Description
Issuing time-limited demands is one strategy for putting pressure on insurers to settle claims quickly. Frequently, the demands impose conditions beyond paying the policy limits. Mishandling these demands can lead to allegations of bad faith and extracontractual damages. The insurer's goals are reasonable, good faith claims handling and a record of defensible actions should bad faith be alleged.
As an initial matter, the insurer must understand its duty to "settle the claim" and whether that duty has been triggered. Then it must evaluate the demand in light of that obligation, taking care to avoid traps laid for the unvigilant. Insurers want to keep in mind that every step and decision they take and every document they create or fail to create may be scrutinized by a jury or judge. Insurers look to their trusted counsel to make recommendations and suggest best practices that will stand up in court.
Listen as our authoritative panel of insurance practitioners offers guidance on the specific steps that insurers can take when responding to time-limited demands.
Outline
- Common characteristics of time-limited demands
- Spotting bad faith setups
- Creating a record of receipt of all communications about the demand
- Evaluating the substance of the demand letter
- Insured status
- Policy limits
- Inclusion of necessary elements
- Who made the demand and whether all claimants included
- Representation of all claimants by counsel
- Standing to make the demand
- Additional conditions in the demand
- Investigation of the liability and damages issues
- Standards for duty to settle
- Covered vs. uncovered claims
- Coverage defenses
- Drafting a response to demonstrate good faith
- Real life examples
Benefits
The panel will review these and other key issues:
- What happens if the insurer has the sole right to settle?
- Does the insurer have a duty to settle or a duty to make reasonable settlement decisions?
- Can the insurer consider coverage defenses or questionable liability when responding?
- Are there things insurers should never do?
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