What is meant by the term “Statute of Limitations”?
A. A statute of limitations is the maximum amount of time that you have to file a formal claim, either with your insurance company or, (if the claim has been terminated or denied) in court. The statutes of limitation applicable to a particular claim depends on your policy, the theory of your case, and the laws of your state.For example, you may claim that the insurance company broke the contract (a contract claim) and/or that the insurance company committed fraud or bad faith (tort claim). Under state law, contract claims and tort claims may have different statutes of limitations.In addition to statutes of limitations imposed by state law, some insurance policies contain contractual limitations provisions, which require the policyholder to file a lawsuit within a given period.Such provisions inserted by the insurance company can pose a serious problem to the consumer, and therefore some states do not enforce them. This is especially so when the insurance company is negotiating and disc
