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Georgia Time-Limited Demand Law (O.C.G.A. § 9-11-67.1)

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  • Georgia Time-Limited Demand Law (O.C.G.A. § 9-11-67.1)

In Georgia, a lawyer’s settlement offer to an auto insurer must follow strict rules before a lawsuit answer is filed. The offer must be in writing, give the insurer at least 30 days to accept, and include seven required terms. If the insurer accepts those terms and pays the policy limits, it is protected from a later “bad faith” lawsuit.

What the Law Says

O.C.G.A. § 9-11-67.1, Settlement offers and agreements for personal injury, bodily injury, and death from motor vehicle collisions, states in part:

(a) Any offer to settle a tort claim for personal injury, bodily injury, or death arising from a motor vehicle collision shall be an offer to enter into a bilateral contract.

(b) From the time a cause of action accrues until the filing of an answer by the named defendant, or if there are multiple named defendants, until the time that all named defendants have filed their initial answers or been found to be in default, whichever is applicable, any offer to settle a tort claim for personal injury, bodily injury, or death arising from a motor vehicle collision and prepared by or with the assistance of an attorney on behalf of a claimant or claimants shall be in writing and:

(1) Shall contain the following material terms, which shall be the only material terms:

(A) A date by which such offer must be accepted, which shall be not less than 30 days from receipt of the offer sent by certified mail or statutory overnight delivery, return receipt requested;

(B) Amount of monetary payment;

(C) The party or parties the claimant or claimants will release if such offer is accepted;

(D) For any type of release, whether the release is full or limited and an itemization of what the claimant or claimants will provide to each releasee;

(E) The claims to be released;

(F) A date by which payment shall be delivered; provided, however, that such date shall not be less than 40 days from receipt of the offer; and

(G) A requirement that in order to settle the claim the recipient shall provide the offeror a statement, under oath, regarding whether all liability and casualty insurance issued by the recipient that provides coverage or that may provide coverage for the claim at issue has been disclosed to the offeror and a date by which such statement under oath shall be delivered, and such date shall not be less than 40 days from receipt of the offer; provided, however, that the requirement provided in this subparagraph may be waived by the offeror; and

(2) Shall include medical or other records in the offeror’s possession incurred as a result of the subject claim that are sufficient to allow the recipient to evaluate the claim.

You can read the full statute on the Georgia General Assembly’s official code site.

In Plain English

After a car wreck, your lawyer will often send the other driver’s insurer a demand letter. A “time-limited demand” says: pay this amount by this date, or the offer is gone. These letters put pressure on insurers. If an insurer wrongly refuses to pay the policy limits, it can later face a “bad faith” claim. That can make the insurer pay far more than the policy limits.

This statute sets the rules for those letters. It applies only to injury or death claims from motor vehicle crashes. It applies only to offers prepared by or with a lawyer. And it applies from the day of the crash until the defendant files an answer in a lawsuit. After the answer is filed, a different statute, O.C.G.A. § 9-11-68, takes over.

The offer must be in writing. Under subsection (g), it must be sent by certified mail or statutory overnight delivery. It must cite this Code section. It must give an address plus a fax number or email for the insurer’s acceptance.

The offer must include seven “material terms,” and only those seven. They are: a deadline to accept of at least 30 days; the dollar amount; who will be released; whether the release is full or limited; the claims being released; a payment date at least 40 days out; and a sworn statement from the insurer about all coverage it has issued. The offer must also include medical records that let the insurer evaluate the claim.

Under subsection (f), the insurer can ask questions about the offer in writing. That is not a counteroffer. The insurer can also send its own proposed release. That is not a counteroffer either.

Subsection (i) is the “safe harbor” for insurers. If the insurer accepts all the material terms in writing, provides the sworn coverage statement, and pays the lesser of the demand or the policy limits, there can be no bad faith lawsuit. This protection applies to any offer, even one that says the statute does not apply. But there is a catch. Under subsection (i)(3), if the insurer fails to comply with a proper offer, it loses the safe harbor for any later offers.

Subsection (j) says the statute does not apply to product liability claims. The law was last changed by Senate Bill 83 in 2024. Those changes took effect July 1, 2024.

Example

Carlos was hit by a driver who ran a stop sign in Augusta on March 3, 2026. He had $60,000 in medical bills. The other driver had a $25,000 liability policy.

Carlos’s lawyer sends a demand letter by certified mail on May 1, 2026. It cites O.C.G.A. § 9-11-67.1. It demands $25,000, the policy limit. It gives the insurer until June 5, 2026 to accept, which is more than 30 days. It says Carlos will give a limited release of the driver only. It sets a payment date of June 15, 2026, which is more than 40 days out. It asks for a sworn statement about all coverage. It attaches Carlos’s medical bills and records.

The insurer accepts all terms in writing, sends the sworn statement, and pays $25,000 by June 15. The case settles. The insurer is protected from a bad faith claim.

Now suppose the insurer ignored the letter and offered $8,000 on June 20. Carlos could sue the driver. If a jury awarded $200,000, Carlos’s lawyer could pursue the insurer for the full amount for failing to settle within limits. Georgia courts have allowed those claims. That is why insurers take these letters seriously.

Key Points to Remember

  • The statute applies to injury and death claims from motor vehicle crashes, before the defendant files an answer.
  • It applies only to offers prepared by or with a lawyer.
  • The offer must be in writing, cite the statute, and be sent by certified mail or statutory overnight delivery.
  • It must give the insurer at least 30 days to accept and at least 40 days to pay.
  • It must include seven material terms and medical records that let the insurer evaluate the claim.
  • An insurer that accepts all terms and pays the demand or policy limits, whichever is less, is protected from a bad faith suit.
  • Product liability claims are excluded.

Related Georgia Laws

Official Sources

This page is general legal information, not legal advice. Laws change and every case is different. Talk to a licensed Georgia attorney about your situation.