Issuing Unconditional "McDill" Tender To Plaintiffs With Pre-Existing Injuries

Under Louisiana law, uninsured/underinsured ("UM") insurers are under strict requirements to issue "good faith" unconditional tenders of the undisputed portion of the plaintiff's damages. These unconditional tenders are not contingent on the final disposition of the case, rather they must be paid up front and cannot be recovered in the event of a lower judgment or settlement after the fact. The amount that is required is only that which is "undisputed", meaning that amount which the insurer does not reasonably dispute is owed to the plaintiff. When an insurer receives "satisfactory proof of loss", it is then under a requirement to issue an unconditional tender within 30 or 60 days.¹ However, if the insurer has knowledge of a plaintiff's pre-existing injuries/conditions that warrant a reasonable investigation, then the insurer can rely on those injuries to delay payment while it investigates the condition, or to withhold payment altogether (if warranted) without being