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December 2013 Archives

U.S. Supreme Court Limits Time for Filing a Lawsuit in ERISA Disability Insurance Claims

Typically, a statute of limitations-or the state mandated time period within which a claimant must file a lawsuit-begins to run once a cause of action arises. In ERISA disability claims, the cause of action arises and claimants are not permitted to file a lawsuit until they have exhausted all administrative remedies, i.e., filed any and all mandatory appeals following a denial of benefits. Thus, it seems logical that a disability claimant's time limit would not begin to run until after the insurance company issues a final denial of benefits and the claimant is left with no other recourse but judicial review.

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