What is the Statute of Limitations For Filing A Bad-Faith Insurance Claim?

Depending on the kind of claim that is being made, each state has a different statute of limitations for bringing a bad faith insurance claim. The period of time within which you can file a lawsuit against your insurance provider for failing to handle your claim in a good faith manner is known as the statute of limitations for a bad faith insurance claim.

Usually, the statute of limitations begins to run when the insurance company is accused of acting in bad faith. In some areas, the clock may begin to run when the policyholder learned about or should have known about the bad faith behavior. Although some states may have longer or shorter statutes of limitations, the time frame varies from state to state and can be anywhere between one and six years.

The statute of limitations may be "tolled" or prolonged in specific situations, such as when the policyholder is a minor, suffers from a mental illness, or is enlisting in the military. Also, the deadlines for bringing a claim against a government body or corporation may differ in other jurisdictions.

A poor faith insurance claim that is not filed within the allotted time period may be permanently prohibited. This simply means that you will not be able to sue your insurance provider for damages or reimbursement due to their bad-faith actions.

In order to avoid missing the time for submitting a claim, it is crucial to contact a competent attorney as soon as possible if you think your insurance company behaved in bad faith. An attorney can provide you with advice regarding the best way to go forward with your claim and can assist you in understanding the state's applicable statute of limitations.