Are Bad Faith Claims Subject To A Different Limitations Period?
Some jurisdictions may apply a limitations period applicable specifically to bad faith claims. For example, in Louisiana a claim for breach of a duty imposed by Louisiana statutory requirements for good faith and fair dealing by insurers is a tort claim subject to a one-year limitations period commencing on the date of the injury. See La. R.S. 22:1220; Zidan v. USAA Property and Casualty Insurance Company, 622 So. 2d 265, 266 (La. Ct. App. 1993); Rodriguez v. Travelers Ins. Co., 2002 US Dist. LEXIS 20504 (E.D. La. 2002). Other states may provide longer limitations periods with respect to an insurer’s unfair claims practices. See, e.g., Young v. Southern Farm Bureau Life Ins. Co., 592 So. 2d 103 (Miss. 1991) (3 years); Jones v. Alfa Mut. Ins. Co., 875 So.2d 1189 (Ala. 2003) (2 years); Arnold v. Nat’l County Mut. Fire Ins. Co., 725 S.W.2d 165 (Tex. 1987) (2 years). Policyholders may want to confirm (i) whether a longer limitations period set forth in the insurance policy encompasses bad
