You can reject an insurance settlement offer if you believe it is inadequate to cover your losses. Understand your options when the insurance company makes a lowball injury settlement offer, and see a claimant's sample response letter.Instead, you have to write a formal letter rejecting the settlement. Victims who want to respond to a low settlement demand offer must use factual information, persuasive arguments, and a professional tone. If you decide to reject the settlement offer, you'll need to do so in writing. Never accept the first offer an insurance company may offer you. This is just the opening offer in what should be a series of negotiations. The court has placed the most commonly used forms on line as a resource. Please be advised that the forms detailed below are intended to be a guide. CARL: About 10 days after the inspection, you will receive a Determination Letter from FEMA in the mail.