The idea of the Stowers demand is that the third-party insurance carrier receives a demand letter which is time sensitive. It's usually sent to the insurance company when liability is clear, and it's sent in a way that receipt can be documented.

What makes a Stowers demand?

Garcia, the Texas Supreme Court articulated the criteria for a valid Stowers demand: (1) at the time the offer is made, the amount sought against the insured must be within the scope of coverage; (2) the amount demanded must be within the insured's policy limits; and (3) the terms of the demand must be such that an ...

What is the Stowers rule?

Stowers Doctrine — holds that a liability insurer that undertakes the defense of an insured has a duty to act in good faith in settling a liability claim; named for a seminal Texas case, G.A. Stowers Furniture Co. v. American Indem.