Court says Michigan Statute of Limitations Starts When Proof of ERISA Disability Claim Was Due

If you live in Michigan, be careful about how long you have to file a lawsuit if your group insurance benefits are denied.  In a case called, Twort v. Cigna Group Insurance, a U.S. District Judge in the Eastern District of Michigan issued an Order on February 27, 2013 holding that Michigan’s 3 year statute of limitations began to run when an employer’s group disability plan stated that proof of loss was due, instead of the end of the appeals process required under the plan.

Many employer sponsored group disability, health and life insurance plans give a limited amount of time to provide proof of loss, i.e. evidence that supports your claim.  The deadline is often 30 to 120 days, and rarely is more than one year after the event giving rise to the claim (like the date of disability, or health procedure or date of death).  The same plans have a mandatory appeals process that often takes longer than the proof of loss time period.

In the Twort case, the Judge held that the countdown to the statute of limitations (the deadline to file suit) should begin on the proof of loss deadline, even if the claims process and appeals is going to last longer than that deadline.

Twort v. Cigna Group Ins., Case No. 12-12569, EASTERN DISTRICT OF MICHIGAN, NORTHERN DIVISION, 2013 U.S. Dist. LEXIS 26646, February 27, 2013.