Understanding Time-limited Demands In Georgia: OCGA 9-11-67.1 And Holding Insurance Companies Accountable For Excess Damages

As an experienced Atlanta personal injury lawyer, I’ve represented countless clients who’ve been injured in car accidents, slip-and-falls, and other incidents caused by someone else’s negligence. One of the most powerful tools in our arsenal for ensuring fair compensation is the time-limited demand under Georgia law, specifically OCGA § 9-11-67.1. This statute provides a structured way for injury victims to make settlement offers to insurance companies before filing a lawsuit, and it can have serious consequences for insurers who fail to act responsibly. In this post, I’ll break down what a 30-day time-limited demand is, how it works, and why it can lead to insurance companies being liable for damages beyond their policy limits if they don’t settle.

What Is OCGA § 9-11-67.1?

Enacted in 2013 and amended several times—most recently in 2024—OCGA § 9-11-67.1 governs pre-suit settlement offers in cases involving personal injury, bodily injury, or death arising from motor vehicle collisions. This law applies specifically to tort claims prepared with the help of an attorney and sets strict requirements for how these offers must be made and responded to. Its goal is to encourage early, fair settlements while protecting both parties from unfair tactics.

Under the statute, a time-limited demand is essentially a formal offer from the injured party (or their attorney) to settle the claim for a specific amount, often within the at-fault driver’s insurance policy limits. The “time-limited” part means the offer expires after a set period, giving the insurance company a deadline to accept or reject it.

The 30-Day Time-Limited Demand: Key Requirements

One common timeframe for these demands is 30 days, which is the minimum period allowed under the law for the recipient to respond. Here’s what makes a valid time-limited demand under OCGA § 9-11-67.1:

• Written and Delivered Properly: The offer must be in writing and sent via certified mail or statutory overnight delivery with return receipt requested.
• Essential Elements: It has to specify:
  • The time period for acceptance (at least 30 days from receipt).
  • The exact amount demanded.
  • The parties to be released from liability.
  • The type of release (e.g., general or limited).
  • The claims or damages covered (e.g., medical bills, lost wages, pain and suffering).
• Bilateral Contract Nature: Following the 2024 amendments, these demands are now treated as offers to form a bilateral contract, meaning both sides must agree to the terms without unilateral changes. This change aims to level the playing field and reduce disputes over what constitutes acceptance.
• Right to Clarification: The insurance company can ask for clarification on the offer without it being considered a counteroffer, as long as they do so in writing within the time limit.

If the demand doesn’t meet these criteria, it may not be enforceable, which is why working with an experienced attorney like myself is crucial to get it right.

Why Make A Time-Limited Demand?

For injury victims, a time-limited demand puts pressure on the insurance company to evaluate the claim seriously and respond promptly. It often includes evidence like medical records, accident reports, and witness statements to demonstrate the strength of your case. If accepted, it can resolve the matter quickly without the need for a lengthy lawsuit, saving time, money, and stress.

But the real power comes when the insurance company ignores or rejects a reasonable demand.

Consequences For Insurance Companies: Liability For Excess Damages

Here’s where things get interesting—and potentially very costly for insurers. Under Georgia law, if an insurance company fails to settle a claim within policy limits when given a reasonable opportunity (like a valid time-limited demand), and the case later goes to trial resulting in a verdict exceeding those limits, the insurer can be held liable for the excess amount in a “bad faith” or “negligent failure to settle” claim.

This stems from landmark cases like Southern General Insurance Co. v. Holt (1992), which established that insurers have a duty to protect their policyholders from excess judgments by settling when it’s prudent to do so. If they act negligently, fraudulently, or in bad faith—such as by lowballing offers or delaying responses—they can face:

• Excess Liability: Paying the full judgment, even if it’s above the policy limits.
• Bad Faith Penalties: Under OCGA § 33-4-6, additional damages like attorney fees and up to 50% of the liability as a penalty if bad faith is proven.
• Assigned Claims: The insured (the at-fault driver) can assign their bad faith claim to the injured party, allowing you to pursue the insurer directly.

Importantly, the Georgia Supreme Court has clarified that there is no affirmative duty to settle without a valid within-limits demand first being made. That’s why crafting a proper time-limited demand under OCGA § 9-11-67.1 is key—it creates that opportunity and sets the stage for potential excess liability if ignored.

In my practice, I’ve seen insurers scramble when faced with these demands because they know the risks. For example, if your policy limit is 300,000, the insurer could be on the hook for the full amount if they blew their chance to settle.

How This Benefits You As An Injury Victim

Time-limited demands empower victims by forcing insurers to take your claim seriously early on. They can lead to faster payouts and hold companies accountable for unfair practices. However, the process is complex, with recent amendments changing how releases and payments are handled (e.g., allowing payments in installments under certain conditions).

If you’ve been injured in Atlanta or anywhere in Georgia, don’t navigate this alone. Insurance companies have teams of adjusters and lawyers working against you—level the field with experienced representation.

Contact me, George Creal, today for a free consultation. Let’s discuss your case and see if a time-limited demand is the right strategy to get you the compensation you deserve. Call 770-961-5511 or visit www.georgialawyer.com to get started.

Disclaimer: This post is for informational purposes only and does not constitute legal advice. Laws can change, and outcomes depend on specific facts. Consult an attorney for advice tailored to your situation.