Legal Question in Insurance Law in California

There are various reasons why the statutory limitation periods might not apply in a given case. One reason is that the parties have a written contract that calls for a different limitation period, whether longer or shorter than the one provided by statute.

Your insurers cannot impose a shorter limitation period on their own by telling you about it in a letter. But the way they became your insurers in the first place was by making contracts with you. Their letters seem to say you have already agreed to shorter limitation periods. That's quite common in insurance contracts. I don't know if it was done here. Even if it was, there may be reasons why the insurers can't enforce those clauses against you.

You should review your policy and the relevant facts with a lawyer if you're concerned about when your rights will expire and/or whether they've expired already.

Please feel free to contact me directly if you'd like to discuss your situation further.

Good luck.

Courts have held that a contractual time limit for bringing an action is enforceable for claims on the policy as long as it's not unreasonably short. See, for example, Fageol Truck & Coach Co. v. Pacific Indem. Co. (1941) 18 Cal.2d 748, 753 and Frazier v. Metropolitan Life Ins. Co. (1985) 169 Cal.App.3d 90, 103. However, if you make a claim and the insurance carrier delays in denying the claim, the time is tolled (i.e. the clock is stopped) until such denial occurs. There are other some other exceptions that don't seem to apply given the general questions you have raised. Of course, since you've been paid, it's likely you're satisfied with the outcome. People sometimes are caught unaware of the limitation. That's why it's always good to consult with a lawyer as soon as practicable after an event that could trigger an insurance policy's coverage.