A letter of intent to sue (with settlement demand) notifies an individual that the sender intends to file a lawsuit against them. Write an effective intent to sue letter.Download a letter of intent to sue (with settlement demand) to inform a defendant that you will sue if they don't pay a settlement amount. This page focuses on how to write an effective settlement demand letter to the insurance company in an auto accident case to maximize your settlement amount. You can document the previous interactions, formally offer to resolve the matter, and emphasize what you'll do if the demand isn't met—usually filing a lawsuit. Gather complete information before you start writing. Fill out the "The Defendant" field with the name of the person or entity being sued. Example medical malpractice settlement demand letter seeking an out-of-court settlement before medical negligence lawsuit is filed. Demand letters are essentially letters demanding payment and stating your intent to sue in small claims court if the dispute cannot be resolved amicably. The insurance adjuster will scan your letter for relevant facts and screening out anything irrelevant.