The Checklist Behind a Georgia Policy-Limits Demand
Key Takeaways: A Holt demand in Georgia generally has to meet the rules in O.C.G.A. § 9-11-67.1 to count as a valid pre-suit settlement offer in a motor vehicle injury claim prepared by a lawyer. The demand must be in writing and sent by certified mail or statutory overnight delivery, return receipt requested. It must state the required material terms: an acceptance deadline at least 30 days from receipt, the payment amount, the released parties, whether the release is full or limited with an itemization, the claims being released, a payment deadline at least 40 days from receipt, and a sworn insurance coverage statement unless the claimant waives it. It must also include the medical or other records needed to evaluate the claim. Short deadlines, vague release terms, missing records, or conflicting conditions can let an insurer argue that no valid offer was made, which can weaken a later bad-faith claim. Courts look closely at the facts of each case.
A Holt demand in Georgia generally has to meet the rules in O.C.G.A. § 9-11-67.1 to count as a valid settlement offer. For motor vehicle injury claims covered by the statute, the demand must be in writing, list specific material terms, set minimum deadlines for acceptance and payment, and include the medical records needed to evaluate the claim. If the letter omits a required term or sets a deadline that is too short, the insurer may argue that no valid offer was made, which can weaken a later bad-faith claim based on the insurer’s refusal to settle within policy limits.
If you were hurt in a crash and the at-fault driver’s insurance looks too small to cover your losses, a carefully drafted demand may affect how much you can recover. The Law Offices of Darwin F. Johnson represents injured people throughout Greater Atlanta. Call 404-521-2667 or contact us now to talk about your claim.
Where the Holt Demand Comes From
The name comes from the Supreme Court of Georgia’s 1992 decision in Southern General Insurance Co. v. Holt. The court held that an insurer may be liable beyond its policy limits if it negligently or in bad faith fails to accept a reasonable, time-limited offer to settle within those limits. Injury lawyers now call that kind of offer a "Holt demand." Liability for a judgment exceeding the limits depends heavily on the facts.
This third-party bad-faith claim is different from first-party bad faith. Under O.C.G.A. § 33-4-6, an insured may be able to recover penalties and attorney’s fees from their own insurer if it fails to pay a covered loss within 60 days after a proper demand and the refusal was in bad faith. Georgia Legal Aid offers a plain-language overview of first-party bad faith claims. A Holt demand usually goes to the at-fault driver’s liability insurer.
When OCGA 9-11-67.1 Governs Your Pre-Suit Demand
The statute generally covers written offers to settle a personal injury, bodily injury, or death claim arising from the use of a motor vehicle when a lawyer prepares or helps prepare the offer for the claimant. It applies from the time the cause of action accrues until the named defendant files an answer, or, with several defendants, until all have answered or been found in default.
In practice, most pre-answer demands in a lawyer-handled Georgia car accident claim fall under the statute. Courts may judge offers made by people without a lawyer, or after defendants have answered, under other standards, such as general contract law or O.C.G.A. § 9-11-68. The General Assembly has amended this statute several times, most recently in 2021 and 2024. Which version applies generally depends on when the cause of action arose.
Holt Demand Georgia Material Terms: The Required Elements
Under O.C.G.A. § 9-11-67.1(b)(1), the terms listed in the statute "shall be the only material terms" of the offer. These terms form the core of any settlement demand checklist:
| Required Element | What the Demand Must State | Statutory Source |
|---|---|---|
| Acceptance deadline | A date for acceptance at least 30 days from receipt of the offer | § 9-11-67.1(b)(1)(A) |
| Payment amount | The amount of the monetary payment | § 9-11-67.1(b)(1)(B) |
| Released parties | The party or parties the claimant will release | § 9-11-67.1(b)(1)(C) |
| Type of release | Whether the release is full or limited, with an itemization of what the claimant will provide to each releasee | § 9-11-67.1(b)(1)(D) |
| Claims released | Which claims will be released | § 9-11-67.1(b)(1)(E) |
| Payment deadline | A date for payment at least 40 days from receipt of the offer | § 9-11-67.1(b)(1)(F) |
| Sworn insurance disclosure | A statement under oath about disclosure of all applicable coverage, due at least 40 days from receipt, unless the claimant waives it | § 9-11-67.1(b)(1)(G) |
Deadlines and Delivery Method
Timing mistakes are among the most common reasons insurers challenge a demand. The acceptance date must be at least 30 days after the insurer receives the offer, not after it was mailed. The offer must go by certified mail or statutory overnight delivery, return receipt requested. The payment deadline must be at least 40 days from receipt.
💡 Pro Tip: Keep the return receipt and tracking history. Every deadline runs from the date of receipt, so proof of that date can become key evidence.
Release Terms and the Sworn Coverage Statement
The release language has to be specific. The demand must say whether the release is full or limited, itemize what the claimant will provide to each releasee, and name the claims being released. Vague terms such as "a standard release" can lead to disputes over whether the parties agreed on the same deal.
The demand must also ask the recipient for a sworn statement about insurance coverage. That statement must say whether the recipient has disclosed all liability and casualty coverage it issued that does or may apply to the claim, due at least 40 days from receipt. The claimant may waive this requirement, but the statement can reveal more coverage, such as an umbrella policy.
Supporting Medical Records
O.C.G.A. § 9-11-67.1(b)(2) also requires the demand to include the medical or other records in the claimant’s possession that relate to the claim and are enough to let the recipient evaluate it. Treatment records, imaging, and bills can help show causation and damages. In serious cases, such as a traumatic brain injury or spinal cord injury, a well-documented demand may help show that the insurer had enough information to see what the claim was worth.
How Georgia Courts Look at Demand Letters
Georgia courts generally ask whether a demand clearly states the deadline, the settlement amount, and the release terms, and whether the insurer’s response accepted those terms without conditions. In King v. Atlanta Casualty Insurance Co., 279 Ga. App. 554 (2006), the Georgia Court of Appeals considered whether an insurer’s failure to respond to a $5,000 property damage demand letter, where the insurer believed another carrier was handling the claim, met the bad-faith standard under O.C.G.A. § 33-4-7. The court found no evidence of bad faith and affirmed summary judgment for the insurer; the case did not involve a time-limited demand to settle within bodily injury policy limits.
These cases depend on their facts, and outcomes vary. A court may decide that an insurer’s response was a valid acceptance, or that it added new terms and became a counteroffer. No demand guarantees a recovery above policy limits.
Common Mistakes That Can Undermine a Settlement Demand
Several common problems can let an insurer argue that a demand was invalid:
- Setting an acceptance or payment deadline shorter than the statute allows
- Sending the demand by regular mail or email instead of an approved delivery method
- Leaving out the list of released parties or the claims being released
- Failing to say whether the release is full or limited
- Leaving out medical records needed to evaluate the claim
- Adding conditions that conflict with the statute’s list of material terms
Talking with the insurer before you send a demand can also cause problems. The insurer may later use recorded statements or casual comments to dispute fault or the extent of your injuries. Learn what to know before talking to insurers so you can protect your claim early.
💡 Pro Tip: Make sure the dollar amount in the demand is at or within the known policy limits, and that every name and claim number is spelled the same way throughout the letter.
Why Strategy Matters Beyond the Statute
Meeting the technical rules is only part of the job. The demand also has to show the strength of the underlying negligence claim, including fault, causation, and damages. If the insurer refuses a valid demand, you may need to file a lawsuit within Georgia’s two-year statute of limitations for most personal injury claims. An experienced Georgia injury attorney can check whether a demand fits the facts and the current version of the statute.
Frequently Asked Questions
1. Does every Georgia settlement demand have to follow OCGA 9-11-67.1?
Not necessarily. The statute covers written offers, prepared by a lawyer or with a lawyer’s help, to settle personal injury, bodily injury, or death claims arising from the use of a motor vehicle, until the defendants have answered or been found in default. Courts may judge other offers under different standards.
2. How long must the insurer have to accept a Holt demand?
The acceptance deadline must be at least 30 days from the insurer’s receipt of the offer, under O.C.G.A. § 9-11-67.1(b)(1)(A). The payment deadline must be at least 40 days from receipt.
3. Can the claimant waive the sworn insurance statement?
Yes. Under § 9-11-67.1(b)(1)(G), the claimant may waive it. Whether to do so depends on the facts, because the statement can reveal more coverage.
4. What happens if the insurer rejects a valid Holt demand?
The case may go to trial. If the judgment exceeds the policy limits, the insurer may be liable for the excess, depending on whether the refusal was negligent or in bad faith. The result is never guaranteed.
5. Is a Holt demand the same as a first-party bad-faith demand?
No. A first-party demand under O.C.G.A. § 33-4-6 goes to your own insurer and generally involves a 60-day payment window. A Holt demand generally goes to the at-fault driver’s liability insurer.
Building a Holt Demand That Holds Up
A valid Holt demand in Georgia generally has to include the material terms listed in O.C.G.A. § 9-11-67.1. Those terms are the acceptance and payment deadlines, the payment amount, the released parties, the release type and itemization, the claims being released, and the sworn coverage statement unless waived. The demand must also include enough medical records to evaluate the claim and go out by an approved delivery method. Every case depends on its own facts.
If you have a car accident claim and the at-fault driver’s coverage may fall short, The Law Offices of Darwin F. Johnson can review your situation and explain your options. Call 404-521-2667 or schedule a consultation today.
Disclaimer: This content is for informational purposes only and is not legal advice. Every case is unique, and results may vary. Consult an attorney about your specific circumstances.