Not All Plans Can Establish a Shortened Limitations Period for Filing a Lawsuit

November 3, 2015

A federal district court prohibited a fully insured plan from establishing a deadline for bringing a claim that was shorter than the state imposed deadline. The long term disability plan was insured under Wisconsin law but attempted to impose a shorter deadline for bringing claims than the three year period allowed under Wisconsin insurance law. The court held that Wisconsin law precluded an insurance company from using a shorter limitations period and that Wisconsin’s three year statute of limitation period applied.

 

Lundsten v. Creative Commun. Living Services, Inc., LTD Plan, No. 13-C-108 (E.D. Wis. Aug. 20, 2015)

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