Your Time Limit Has Expired—Or Has It?

 Thursday, April 15, 2021

 CLM Magazine

First-party coverage evaluations and investigations that are dependent upon the insured’s cooperation can become frustrating when the insured refuses to provide necessary documents and other information.

Most of these investigations involve facts surrounding a questionable claim and verifying whether or not there is a covered cause of loss.

While you may have done all you can do to investigate a claim in good faith, there are occasions when the insured refuses to comply, and the suit limitation expires.

A letter is sent to the insured explaining that the suit limitation has expired and that the claim is being closed for lack of cooperation.

But is the claim really over? One month after the suit limitation has expired, an attorney representing the insured sends you a letter claiming that your company has waived the policy’s suit limitation, and that you are estopped from raising a suit-limitation defense.
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