CA AB2429

Establishes state policy encouraging prompt settlement of civil actions and insurance claims to benefit claimants, policyholders, and insurers while eliminating unreasonable time-limited demand tactics.

Requires time-limited demands to be in writing, labeled "Time-Limited Demand: Time Sensitive," sent via certified mail, and include a minimum 60-day acceptance period from receipt by the insurer.

Mandates time-limited demands include specific information such as monetary settlement amount, detailed damage descriptions, legal theory of liability, full release offer, and disclosure of Medicare/Medicaid eligibility and liens.

Requires supporting documentation including medical records and HIPAA authorizations for injury claims, employment and tax records for lost wage claims, and property damage estimates and photographs for property damage claims.

Allows insurers to request clarification or additional information without rejecting the demand, with the acceptance deadline automatically tolled for a minimum of 30 days during the clarification period.

Specifies that time-limited demands not strictly complying with statutory requirements are not admissible and cannot form the basis for extra-contractual damages claims.