Statute of Limitations Provision In Disability Policy Enforceable under ERISA
What is a Statute of Limitations?
The Statute of Limitations is the amount of time allowed under the law in which a plaintiff can bring a lawsuit. ERISA does not specify a statute of limitations for filing a lawsuit within the language of the statute. As such, insurance companies often write a statute of limitations provision into the policy, the most common being a three year statute of limitations. The statute of limitation provision usually indicates that the insured has three years from the date “proof of loss is required” in order to bring suit. Until recently there was a split amongst various courts as to when the “Proof of Loss” requirement is triggered.
ERISA’s Take on the Statute of Limitations
As a general matter, the statute of limitations begins to run when the action “accrues” or when the plaintiff can file a lawsuit to obtain relief. However, under ERISA the insured must undergo and exhaust all administrative remedies (appeals) prior to filing a disability lawsuit. In the case of Heimeshoff v. Hartford Life & Accident Insurance Company, the Supreme Court determined that ERISA governed group disability policies can contain a Statute of Limitations provision that begins prior to the right to bring lawsuit. This is in contrast to the above stated general rule of a statute of limitations and serves as yet another example of how ERISA has a set of rules unlike any other area of the law.
In the Heimeshoff case, the statute of limitations enumerated in the policy was three years from the date proof of loss was required. In the underlying Court case, Hartford argued that Heimeshoff’s right to bring lawsuit was barred as she brought suit more than three years after proof of loss was required. Hartford argued that under the policy the statute of limitations began to run as of the date that Heimeshoff’s claim was initially denied by Hartford. Heimeshoff disagreed and argued that the statute of limitations to bring suit did not begin until the date of the final denial of benefits by Hartford. In deciding the case the District Court presiding over the matter and the Second Circuit Court of Appeals both sided with Hartford’s position, barring Heimeshoff’s right to bring a lawsuit of a denial of benefits under ERISA. In reviewing the lower court decisions the Supreme Court affirmed.
When “Proof of Loss” Begins
As discussed in the above case, your “deadline” with which to file a lawsuit under an ERISA disability insurance policy begins as of the date of the initial denial of benefits by the insurance company. This means that while you are going through the administrative appeal process with the insurance company your right to bring a lawsuit has already begun. Using the standard three year statute of limitations, if the administrative appeal process takes one year from the date of the initial denial of benefits this means that you would have 2 years to file your lawsuit. Many people wait to contact an attorney about filing a lawsuit under ERISA a year or two after exhausting all administrative remedies. This in turn could result in them being barred from ever bringing lawsuit.
Each disability insurance policy contains unique policy language. As such it is important to be aware of the provisions that may affect your legal rights to bring suit. If your claim has been denied and your only remaining option is to file a lawsuit under ERISA please feel free to contact our office to determine how we may be able to assist you.
Attorneys Dell and Schaefer did not represent or have any role in the Heimeshoff case.
Resources to Help You Win Disability Benefits
Submit a Strong Hartford Appeal Package
We work with you, your doctors, and other experts to submit a very strong Hartford appeal.
Sue Hartford
We have filed thousands of disability denial lawsuits in federal Courts nationwide against Hartford.
Get Your Hartford Disability Application Approved
Prevent a Hartford Disability Benefit Denial
Negotiate a Hartford Lump-Sum Settlement
Our goal is to negotiate the highest possible buyout of your long-term disability policy.
Policy Holder Rating
Truly Horrible and Immoral Company with No Customer Service
Sent my Direct Deposit to a Strangers Bank Acct
Former Hartford employee has had life insurance and accidental death policy's revoked for one late premium payment
Reply
Bad Faith
Denied by Hartford after 20 years of Payments
This company is a scam!
Hartford Stopped Payments
Q: Are insurance companies allowed to deny payment of short term disability benefits because I am collecting social security retirement benefits disability?
Q: Does Hartford reduce their monthly LTD payments after 30 months?
Q: Can The Hartford offset my LTD on my VA disability compensation or back pay?
Q: Can Hartford lower my long term disability check if I take my money out of my Vanguard account?
Q: Relocation
Q: Is it possible to write me a strict authorization form for The Hartford?
Q: Denied by Hartford for Long-Term Disability Benefits
Q: Disability company dropped my monthly benefits
Does Hartford Pay Disability Insurance Claims?
How Does Hartford Long Term Disability Work?
What Happens If My Hartford Short Term Disability Claim is Denied?
How Long Does a Hartford Short Term or Long Term Disability Claim Last?
If I Convert my Former Employee Disability Policy to a Private Policy Does ERISA Govern?
Is the Hartford Disability Purchase of Aetna Bad for Aetna LTD Policy Holders?
Hartford Disability Claim Problems
How Can I Protect Myself At A Hartford IME Exam?
Nurse With Knee and Back Disorder Wins Hartford Disability Appeal
Executive Director with Meniere's Denied Long Term Disability Insurance Benefits By Hartford
A Hartford Disability Benefit Lawsuit Victory for Truist Banker with Lupus
Hartford Denies Disability Benefits To Home Depot Employee 3 Weeks Before Change of Disability Definition
Hartford Denies Long Term Disability Benefits After Paying for 22 Years
Hartford Overturns Denial of Disability Benefits on Appeal
Hartford Approves Disability Claim After Appeal Deadline
Hartford overturned its previous denial of LTD benefits for Illinois Account Representative
Reviews from Our Clients






