If my insurance company cancelled my insurance policy without a reasonable basis or denied payment of a claim when it was required to pay, is there a limited time within which I have to file a lawsuit against the insurance company?
Yes. Claims against an insurer for breach of the duty of good faith and fair dealing must be brought not later than two years from the date the claim accrued. See Tex. Civ. Prac. & Rem. Code § 16.003(a); Murray v. San Jacinto Agency, Inc., 800 S.W.2d 826, 827 (Tex. 1990). The “accrual date” (the date when the two year limitations period begins to run) is the day the insurer wrongfully denied coverage. See Murray, 800 S.W.2d at 828. The fact that damage may continue to occur for a period after the denial date does not prevent the statute of limitations from starting to run. Id. However, if the insurance company “strings the insured along” without denying or paying the claim, then the accrual date may be tolled. See, e.g., Murray, 800 S.W.2d at 829 n.2.
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The material above has been prepared by The Dietrich Law Firm for informational purposes only; it does not constitute legal advice, and reading it does not create an attorney-client relationship. The law changes, and articles reflect the law as of their publication date. No person should act or rely on any information here without seeking the advice of an attorney. If you believe you have a legal matter, statutes of limitations may limit the time you have to act — contact the firm or call 713-830-7687.
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