Few issues ship shivers down a policyholder’s backbone quicker than discovering that an in any other case legitimate declare has been sunk by a missed submitting deadline. That’s precisely what occurred in a case determined final week, The Renaissance on Memorial, L.L.C. v. Vacationers Casualty Insurance coverage Firm of America. 1 The property proprietor sued three and a half years after an April 2020 hailstorm, arguing that continued back-and-forth adjustment with Vacationers ought to excuse the delay. The court docket disagreed and tossed each the breach of contract and unhealthy religion counts as premature.
Vacationers’ Movement for Abstract Judgment relied on the usual “Authorized Motion In opposition to Us” clause that required any lawsuit to be filed inside two years of the bodily loss. Renaissance missed that window by eighteen months. To keep away from abstract judgment, Renaissance argued in its response that Vacationers saved the declare alive by means of a 2022 re-inspection and a pair of 2023 e-mails that invited extra info. These gestures, Renaissance mentioned, “lulled” it into believing fee was nonetheless on the desk and subsequently waived or tolled the contractual limitation.
The choose was not persuaded. He started by stressing that waiver or estoppel should be primarily based on the insurer’s conduct earlier than the contractual deadline expires. Conduct that occurs later, irrespective of how encouraging, “is not going to be thought-about” when deciding whether or not the limitation interval was waived. As a result of all of Vacationers’ alleged lulling gestures occurred after April 22, 2022, the day the two-year clock ran out, they had been legally irrelevant.
The court docket then turned to what Vacationers truly did earlier than the deadline: it investigated, paid two checks totaling about $107,000, and went silent. Underneath Oklahoma regulation, silence just isn’t waiver. Because the opinion explains, as soon as an insurer pays what it believes is owed and stops negotiating, the absence of a proper declare “denial” or file-closure letter doesn’t prolong the suit-limitation interval. Except the provider is actively promising extra money or in any other case assuring the insured that litigation is pointless, the clock retains ticking.
With the contract declare barred, the unhealthy religion tort declare fared no higher. Oklahoma applies a two-year statute of limitations that begins when the insured “may have maintained the motion to a profitable conclusion.” As a result of Vacationers’ last fee and valuation letter arrived in December 2020, the reason for motion accrued then. Renaissance’s 2023 criticism was, subsequently, late—and no quantity of later correspondence may change that.
Most property insurance coverage insurance policies impose their very own personal submitting deadlines which are shorter than state statutes of limitations. If a state upholds these customary clauses, lacking these deadlines is deadly. Hoping {that a} pleasant adjuster’s post-deadline e-mail or a courtesy re-inspection will save the day is commonly, as this case exhibits, wishful pondering.
The primary lesson is for public adjusters and policyholders to mark the suit-limitation date. If you’re a public adjuster, remind your consumer (and remind your self with nice claims software program like ClaimWizard) that the countdown is tied to the date of loss, not the date of declare submission or fee. If there’s any probability negotiations will drag on, see an legal professional and request a written tolling settlement from the provider earlier than the contract’s deadline arrives.
Second, don’t confuse silence with cooperation. As soon as an insurer points its protection willpower and cuts a verify, deal with the limitation clock as working full velocity except the corporate expressly says in any other case in writing. Inviting further paperwork “topic to a whole reservation of rights,” as Vacationers did right here, just isn’t sufficient. Courts could view that language as sustaining, not waiving, the limitation of swimsuit protection.
The Renaissance choice is a reminder that insurance coverage disputes typically activate procedural traps slightly than the deserves of the loss. Staying vigilant about suit-limitation clauses protects each policyholders and the professionals who serve them from discovering {that a} good declare has slipped away by the mere passage of time. Calendaring deadlines is an important course of for claims dealing with.
Thought For The Day
“Inaction breeds doubt and concern. Motion breeds confidence and braveness.”
—Dale Carnegie
1 The Renaissance on Memorial v. Vacationers Cas. Ins. Co. of America, No. 23-cv-472, 2025 WL 1194998 (N.D. Okla. Apr. 24, 2025).