Even if an insurer has no sinister motives and intends to pay the policy limits, it can be threatened with an expensive Holt suit if the insurer's response to a settlement demand was not Even if an insurer has no sinister motives and intends to pay the policy limits, it can be threatened with an expensive Holt suit if the insurer's response to a settlement demand was not "reasonable." Credit: Yanukit/Adobe Stock

Insurance policy limit demands for personal injury claims (commonly known as Holt demands) remain a thorny issue in Georgia. "Set-up" Holt demands — complete with vague and confusing conditions and shady releases — remain commonplace in hopes that unwary insurers "botch" their responses and become ensnared in multimillion-dollar bad faith litigation.

To better navigate this needlessly complex area of law, insurers should have a good grasp on the current legal landscape surrounding the Holt rule, how intended "fixes" may not prevent bad-faith litigation, and best practices and considerations that are available when a Holt demand comes in the door.

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