Understand your options when the insurance company makes a lowball injury settlement offer, and see a claimant's sample response letter. You should reject a settlement offer if you can justify your position with solid evidence.Instead, you have to write a formal letter rejecting the settlement. A corporation or LLC does not need a lawyer when it is sued in Small Claims Court. Victims who want to respond to a low settlement demand offer must use factual information, persuasive arguments, and a professional tone. I crafted a demand letter, from a combination of many templates I found online. Historical Note Sec. Alteration, addition or items not called for in the itemized proposal form or that contract irregularities of any kind may be rejected.