A Longworth letter protects a potential UIM claim
A Longworth letter is a notice used when a proposed settlement with the at-fault driver may affect an underinsured motorist claim in New Jersey. It gives the UIM carrier information about the proposed resolution and an opportunity to protect its rights before the driver is released. Careful settlement planning helps preserve the insurance protection you purchased.
The practical concern is straightforward. After paying benefits, a UIM insurer may have a right to pursue the responsible person. That is called subrogation. A release given to that person can affect the insurer's ability to do so. The Longworth procedure addresses that issue while allowing the injured person to pursue the available liability settlement.
This is a step to handle as part of the settlement process, not something to assume will take care of itself. The fact that an adjuster knows an accident occurred does not necessarily establish that the carrier received the required notice of a proposed settlement. The content and timing of the communication matter.
First determine whether UIM coverage may apply
Underinsured motorist coverage is different from the responsible driver's liability coverage. It may be available under a policy protecting the injured person, depending on insured status and the applicable terms. New Jersey's statutory comparison of limits also matters. The existence of substantial injuries alone does not establish that a vehicle is legally underinsured.
Before concluding that no UIM claim exists, I review potentially applicable policies. That may include a policy issued to the client or coverage associated with the household or occupied vehicle. The analysis should identify the actual limits and any relevant restrictions. A recollection of what was purchased is useful background, but it does not replace the documents.
The proposed liability settlement should also be confirmed. We need to understand whose coverage is being offered and what claims the payment is intended to resolve. Where multiple people were injured, competing claims may affect the amount available. Those details can influence both the settlement advice and the information provided to the UIM carrier.
What the carrier needs to evaluate
The notice should give the UIM insurer a meaningful opportunity to consider the proposed settlement. Supporting information commonly includes confirmation of the liability offer and the relevant coverage limits. The carrier also needs enough information about the accident and injuries to evaluate its position. A bare statement that the client intends to settle may leave important questions unanswered.
I organize the submission so the insurer can follow the claim. If a particular fact remains under investigation, it should be identified accurately. That is preferable to treating an assumption as established evidence. A well-supported submission helps keep the discussion focused on the actual issues rather than avoidable requests for basic information.
Proof of receipt matters as well. The file should show what was sent, to whom it was sent and when it was received. The response period must be evaluated under the governing law and the circumstances. I would not advise a client to calculate a deadline from a generic description online and sign a release without confirming that the required process has been followed.
Reviewing the response and the proposed release
The UIM carrier may consent to the liability settlement or take steps permitted by the governing procedure to preserve its subrogation position. Its response should be documented. If the insurer requests additional information or takes an unclear position, that needs attention before the underlying claim is released.
The release itself deserves a separate review. A document intended to resolve the claim against one driver should accurately identify the parties and claims being released. Broad language can raise questions about other potentially responsible parties or remaining coverage. We should understand the document's effect rather than treat it as routine paperwork after agreeing on a number.
My objective is to coordinate those steps so the client can receive an appropriate liability payment while preserving a supported UIM claim. That requires attention to the sequence. An insurer's agreement to one part of the process should not be assumed to resolve every issue in the case.
Consent to settle and payment of UIM benefits are different
Consent to the underlying settlement does not necessarily mean that the UIM insurer agrees with the amount claimed. It may still dispute responsibility for the collision or the extent to which the accident caused the injuries. It may also raise a coverage question. Those issues must be addressed on their own evidence and legal basis.
The UIM limit is not an automatic additional payment. Applicable liability credits and proof of damages affect the amount potentially recoverable. I would explain those factors before presenting a settlement estimate. The client should understand the available coverage without being given a number that assumes every disputed issue will be resolved in the client's favor.
At the same time, the insurer's disagreement is not the final answer. A developed medical record and a clear account of the accident can support the claim through negotiation or the procedure required by the policy and law. The purpose of the Longworth letter is to preserve the opportunity to pursue that claim properly.
If a settlement has already been discussed or signed
If you have already received an offer, provide the correspondence and any proposed release before responding. If something has already been signed, bring the actual document and explain the sequence of events. The details matter. It is not appropriate to assume that a coverage issue is harmless, but neither should the consequences be guessed from a short description.
New Jersey decisions have examined defective or delayed Longworth notice and questions about prejudice to the UIM carrier. That does not make delay a sound strategy. It means a problem requires a careful review of the facts and the controlling law rather than an automatic conclusion made without the file.
For a client facing a policy-limits offer, the useful next step is to review the possible UIM coverage and settlement terms together. You should be able to understand what the proposed payment resolves and what remains available afterward. A Longworth letter is one part of making that decision with the necessary protections in place.
Sources and Further Reading
About Michael B. Fusco
Michael B. Fusco is a New Jersey personal injury attorney certified by the Supreme Court of New Jersey as a Civil Trial Attorney. Read Mike’s biography and credentials.
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General Information
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