Sample of a Cash Settlement Letter. Read our Mutual Release and Settlement Agreement template to understand our law firm's procedure in most settlements.Use this letter to help you negotiate a full and final settlement offer with a creditor. This document serves as your formal request for compensation from the atfault party's insurance company. Fair Claims Settlement Practices Regulations. California Code of Regulations Title 10, Chapter 5. The purpose of the demand letter is an effort to settle your case without having to file a lawsuit. The letter should begin with the claimant's full name, address, and contact details. Sample demand letters to insurance companies and hospitals in personal injury, medical malpractice, wrongful death and other civil tort claims.