If you’ve been injured in a car accident in Louisiana and have already settled with the at-fault driver, you may expect your uninsured/underinsured motorist (UM/UIM) carrier to promptly pay what they owe.
But too often, insurers delay—or refuse to pay anything at all.
Louisiana law does not allow that.
Under what are commonly referred to as “McDill tenders,” your UM insurance company has a duty to make a good faith payment of the undisputed amount of your claim—even if the full value of your case is still being contested.
Here’s what you need to know.
What Is a “McDill Tender” in Louisiana?
A McDill tender comes from the Louisiana Supreme Court case:
McDill v. Utica Mutual Insurance Co.
This case established that an insurance company must:
Unconditionally tender the amount that is reasonably owed to the insured once it becomes clear that some damages are due.
This obligation applies directly to UM/UIM claims after a settlement with the at-fault driver.
Louisiana Bad Faith Statutes Strengthen This Obligation
In addition to McDill, Louisiana law imposes statutory duties on insurance companies to act fairly and promptly.
La. R.S. 22:1892
This statute requires insurers to:
- Pay the amount of any claim due within 30 days after receiving satisfactory proof of loss
- Make a reasonable effort to settle claims
Failure to comply can result in:
- Penalties (up to 50% of the amount owed)
- Attorney’s fees
La. R.S. 22:1973
This statute imposes a broader duty of good faith and fair dealing, requiring insurers to:
- Adjust claims fairly and promptly
- Make reasonable efforts to settle claims
- Avoid arbitrary or capricious conduct
Violations can result in:
- Additional penalties (up to two times the damages sustained or $5,000, whichever is greater)
When Does a UM Carrier Have to Make a McDill Tender?
After you settle with the at-fault driver, your UM insurer must evaluate your claim.
Once the insurer has sufficient information to determine that:
- You were injured, and
- Your damages exceed the at-fault driver’s policy limits,
they are required to tender (pay) the undisputed portion of your claim.
This obligation is reinforced by both McDill and Louisiana’s bad faith statutes.
What Does “Undisputed Amount” Mean?
The undisputed amount is the portion of your claim that the insurance company knows—or should know—is owed based on the evidence.
This may include:
- Medical expenses that are clearly related to the crash
- Lost wages supported by documentation
- General damages that are reasonably certain
Even if the insurer disputes the full value of your claim, they must still pay what is clearly owed.
Why McDill Tenders Matter After a Settlement
Once you settle with the at-fault driver:
- Your UM coverage becomes the primary source of additional compensation
- Your insurer has a duty to act in good faith under Louisiana law
- The law requires them to pay promptly when liability and damages are reasonably clear
They cannot delay payment simply because negotiations are ongoing.
What Happens If the Insurance Company Fails to Tender?
If your UM carrier fails to make a timely and reasonable McDill tender, they may be liable under:
- La. R.S. 22:1892 (failure to timely pay)
- La. R.S. 22:1973 (bad faith conduct)
This can result in:
- Financial penalties
- Attorney’s fees
- Additional damages for acting in bad faith
Common Insurance Company Tactics
Even with these legal obligations, insurers often:
- Claim they “need more documentation”
- Dispute clearly related medical treatment
- Delay evaluating the claim
- Make low or nonexistent initial tenders
These tactics are designed to minimize payouts—not comply with Louisiana law.
Key Takeaways for Louisiana Injury Victims
- A McDill tender requires your UM insurer to pay undisputed amounts promptly
- This obligation is backed by Louisiana statutes (La. R.S. 22:1892 and 22:1973)
- Your insurer cannot delay payment just because the full claim is disputed
- Failure to tender may expose the insurer to penalties and bad faith liability
Why You Should Speak With a Lawyer
McDill tenders are a powerful tool—but only if enforced properly.
An experienced personal injury attorney can:
- Determine whether your insurer has violated its legal duties
- Force a proper good faith tender
- Pursue penalties and additional damages when appropriate
📞 Free Consultation – Don’t Let the Insurance Company Delay What You’re Owed
If you’ve settled your case and your UM insurance company still hasn’t paid, you may have more leverage than you think.
Contact Maples, Connick & Brendel today for a free consultation.
Our team understands Louisiana UM law and knows how to hold insurance companies accountable under McDill and Louisiana’s bad faith statutes.
Call now or reach out online to protect your rights and pursue the full compensation you deserve.
