Understanding the 2024 Changes to O.C.G.A. § 9-11-67.1: What You Need to Know Demand Letters and Settlements

In Georgia, legal procedures are constantly evolving to ensure the efficiency and fairness of the judicial system. One important change in 2024 revolves around O.C.G.A. § 9-11-67.1, a statute that deals with the timely service of a complaint and the commencement of a civil action. This statute governs settlement offers and agreements for personal injury, bodily injury, and death from motor vehicle; payment methods.

What is O.C.G.A. § 9-11-67.1?

An attorney would use O.C.G.A. § 9-11-67.1 in Georgia to make a pre-suit settlement demand in a motor vehicle accident case, particularly when aiming to leverage a potential bad faith claim against an insurance company if they fail to accept a timely offer within the specified terms outlined in the statute; essentially, it provides a clear framework for making a settlement offer that can be used to establish bad faith if not accepted appropriately by the insurer

Key 2024 Changes to O.C.G.A. § 9-11-67.1

1. The law now states that this statute applies from the time the wreck occurred until the filing of an answer by the named defendant or, if multiple defendants, until all named defendants have answered.

2. The recent updates also make it clear that the statute only applies to claims involving motor vehicle collisions.

3. need to specifically list the date by which the settlement offer must be accepted. Offer letters must include:

“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…”

If there is a payment condition, then the offer must state “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.”

4. The statute provides clarification on deadlines for insurance coverage affidavits.
5. This new version of the statute makes it clear that there cannot be any other terms included in the demand; if they are included, they are immaterial; and if the insurance company does not accept the immaterial terms, then there cannot be a subsequent bad faith claim based on that.

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