Excess ad damnum letter

Term · Insurance and risk management · MLC-T-INS-001366

A letter from an insurer to its insured warning that the damages demanded in a lawsuit, the ad damnum, exceed the limits of the policy, so the insured faces personal liability for the excess. It typically advises the insured to notify any excess carrier and to consider retaining personal counsel. The warning protects the insurer against later claims that it failed to disclose the excess exposure.

Table 1. Record
Identifier	MLC-T-INS-001366
Field	Insurance and risk management
Subject	Excess Umbrella

Record as JSON

{
  "id": "MLC-T-INS-001366",
  "term": "Excess ad damnum letter",
  "field": "Insurance and risk management",
  "definition": "A letter from an insurer to its insured warning that the damages demanded in a lawsuit, the ad damnum, exceed the limits of the policy, so the insured faces personal liability for the excess. It typically advises the insured to notify any excess carrier and to consider retaining personal counsel. The warning protects the insurer against later claims that it failed to disclose the excess exposure.",
  "subject": "Excess Umbrella",
  "url": "https://mlchart.com/terminology/insurance/excess-ad-damnum-letter/"
}

Record 1,211 of 3,708 in Insurance and risk management terminology (MLC-0106). Request the full dataset.