One item that every policyholder and public adjuster should know is the late date when a lawsuit must be filed, or rights to recovery are lost. This statute of limitations date is extremely important and sometimes confusing to determine. Each state has its own laws. A pending case where a decision is awaiting from a judge about this date in Minnesota is an example.

The competing briefs 1 indicate that the policy language has the following language:

Suit Against Company

No suit, action or proceeding for the recovery of any claim under this policy shall be sustainable in any court of law … unless the same be commenced within twelve (12) months next after inception of the loss provided, however, that if under the laws of the jurisdiction in which the property is located such limitation is invalid, then any such claims shall be void unless such action, suit or proceedings be commenced within the shortest limit of time permitted by the laws of such jurisdiction.

The insurer is arguing that the lawsuit and the demand for appraisal were after this date, and the policyholder is time-barred from seeking any recovery.

The policyholder argues this administrative provision prevents the policy from having language shorter than two years:

No policy, rider, or endorsement form shall be accepted for filing by this department from any casualty insurance company that contains a provision limiting the time within which legal proceedings may be instituted against the insurer by the insured to a period less than two years.

Who will win? I will report back and explain the judge’s ruling when the ruling is made. Until then, the safest thing in Minnesota—and any state—is to see a lawyer before the one-year potential deadline.

Thought For the Day

Deadlines aren’t bad. They help you organize your time. They help you set priorities. They make you get going when you might not feel like it.

1 Harmony East Cono. Assoc. v. Falls Lake Fire & Cas. Co., No. 24-cv-2048 (D. Minn.) (Plaintiff’s Memorandum in Support of Motion to Compel Appraisal) (Defendant’s Memorandum in Opposition to Motion to Compel Appraisal).