Question
How long is the ERISA disability policy statue of limitatation?
In 2013, my long term disability benefits (50% of salary) from New York Life, which was provided by my employer, were abruptly cut off. I was working in California. My subsequent appeal was denied. I was very sick, with a GI disease, and I had a letter from my doctor and medical tests that showed my illness. New York Life denied because I was not hospitalized. But, one can be too sick to go to work even if not hospitalized. Now, that I am healthier, I would like to legally dispute this. My understanding is that the statute of limitations to do so is 4 years which would make my case still valid. Would the first step be to hire a lawyer to send a formal legal letter to New York Life with my case details, medical justification, and my intent to dispute? The amount is fairly trivial to New York Life (~$40,000). I would think that New York Life, if I pursued this with adequate medical evidence, would be better off simply settling this with me?
Answer
Sebastian, did you ever appeal the denial of benefits? The law can be very black and white that failure to appeal within the 180 day deadline could preclude legal action. If you did not file the appeal New York Life does not have an obligation to consider. I would also advise you to review the policy again as many ERISA disability policies are limited to a 3 year statute of limitation.
