Standard Closing Letter (Made Whole)

Send toClient

WhenMoney collected in a made-whole state

💡 When to use it

Send the standard closing letter to your client once a recovery has been collected from the at-fault party or their carrier. It reports the result, shows exactly where every dollar went, and closes the file.

Use this version when the loss state follows the made whole rule. The insured is repaid their full deductible before the client takes any share of the recovery. For states that split the shortfall proportionally, use the pro rata version.
Lead with the win. The first sentence tells the client the recovery was successful and how much was collected.
Show the math in a table. Total recovered, the insured's deductible reimbursement, the client's share, any recovery fee, and the net amount back to the client.
Check the policy language too. Some policies change how the deductible is shared, whatever the state's default rule.
Apply the fee the way your agreement says. A fee is usually taken from the client's share only, not the insured's deductible, but confirm your service agreement.
Say where the deductible went, and send the insured the deductible reimbursement letter.

Worked example. In this made-up example, the client paid $20,000.00, the insured's deductible was $1,000.00, and the total claim was $21,000.00. The file settled for $14,700.00 (70% of the claim), and the recovery fee is 25% of the client's share.

Item	Amount
Total amount recovered	$14,700.00
Insured's deductible	$1,000.00
Deductible reimbursed to insured	$1,000.00 (paid in full first)
Client's share of recovery	$13,700.00
Recovery fee (25% of client's share)	−$3,425.00
Net amount to client	$10,275.00

Under made whole, the insured is repaid in full before the client takes anything, so the client absorbs the entire $6,300.00 shortfall.

✉️ The letter

Fill in the boxes and the letter updates as you type. Anything you leave blank stays [in brackets]. What you type stays on your device. Free downloads and prints include a light Subrobuddy watermark.

[Client Name]
Attn: [Client Contact Name]
[Street Address]
[City, State ZIP]

[Today's Date]

RE: Recovery Complete — Closing Letter

Insured: [Insured's Name]
Your Claim No.: [Client Claim Number]
Our File No.: [Your Company File Number]

Date of Loss: [Date of Loss]
Loss Location: [Loss Address, including State]
Responsible Party: [Responsible Party or Adverse Carrier]

Dear [Client Contact Name]:

We are pleased to report that our office has successfully recovered $[Total Recovered] from [Responsible Party or Adverse Carrier] for the loss on [Date of Loss]. This file is now closed. A breakdown of the recovery is shown below.

Deductible reimbursement to the insured

Because this loss occurred in [Loss State], which follows the made whole rule, [Insured's Name] is reimbursed their full deductible before any recovery is applied to [Client Name]'s payment. [If the matter settled for less than the full claim: Although this matter settled for less than the full amount claimed, the insured's deductible is paid in full first, and the shortfall is applied to [Client Name]'s share.]

The insured's deductible reimbursement of $[Insured's Deductible] [has been issued directly to the insured / is included in this payment for you to forward to the insured].

Recovery fee

[If a fee applies:] Per our service agreement, a recovery fee of [Fee %]% has been applied to [Client Name]'s share of the recovery.

Recovery breakdown

Item	Amount
Total amount recovered	$[Total Recovered]
Insured's deductible	$[Insured's Deductible]
Deductible reimbursed to insured	$[Deductible Owed to Insured]
[Client Name]'s share of recovery	$[Total Recovered − Deductible Owed to Insured]
Recovery fee ([Fee %]%)	−$[Fee Amount]
Net amount to [Client Name]	$[Net Amount]

[A check for $[Net Amount] is enclosed / Payment of $[Net Amount] has been issued by [check / ACH] on [Payment Date].]

If you have any questions about this recovery or the breakdown above, please contact our office. Thank you for the opportunity to handle this matter.

Sincerely,

[Name]
[Title]
[Company]
[Address]
[Phone] · [Email]