This article provides a template for a debt settlement proposal letter and explains what a debt settlement letter should contain. 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.A debt validation letter is a written communication that a consumer sends to a debt collector or creditor to request verification and validation of a debt. Click here to view a sample letter template. A sample format is attached. Find a Courthouse Facilitator for help completing family law or guardianship forms in some counties. This example settlement agreement is a generic form with self-explanatory checkboxes.