Legal Question in Insurance Law in California

Time-limit for bringing legal action

Thank you, in advance, to any and all who answer this question.

My disability insurance company has a documented history, as the courts have found, for ''systematically denying benefits''. Thus far, they have engaged in a dozen examples of improper bad faith behavior identical to actions that have been cited in the numerous cases against them.

The last clause of my contract reads: ''You cannot bring legal action within 60 days from the date written proof of loss is given. [That's reasonable.] You cannot bring it after 3 years from the day written proof of loss is required.''

Obviously, if the company is somehow forced to pay for the first three years, it's obvious what will happen thereafter. Is this clause enforceable?

Thank you.


Asked on 6/13/04, 11:46 am

1 Answer from Attorneys
Edward Hoffman Law Offices of Edward A. Hoffman

Re: Time-limit for bringing legal action

The clause is enforceable, but it may not mean what you think it means. Your statement about the insurer being "forced to pay for the first three years" leads me to think you might have misunderstood.

What this clause means is that you have a limited period during which you can bring a lawsuit against them for any given loss. This period begins 60 days after you give the insurer written proof of your loss, and ends 3 years after such written proof was "required." It does not mean the company has to pay for three years of anything; only that this is how long you have to start a lawsuit.

You will need to refer to your policy to see when this proof is "required", because that date may not be the same one on which you actually gave notice -- in other words, the three-year period might not start on the same date as the 60-day period.

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Answered on 6/15/04, 8:04 pm


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