Insurance

• Library: Guide to Illinois Statutes of Limitations and Repose (2018 Ed.)

INSURANCE

A. REQUIRED ACCIDENT AND HEALTH POLICY PROVISIONS

1. Time to Give Written Notice of Claim

215 ILCS 5/357.6: Notice of claim

Within 20 days from the occurrence or the start of any loss, or as soon thereafter as reasonably possible, the insurance company must be given written notice of a claim. Notice of continuing disability for which indemnity may be payable must be given at least once every 6 months.

2. Time to Furnish Written Proof of Loss

215 ILCS 5/357.8: Proof of loss

Within 90 days from the date of loss or the end of a continuing loss, the insurance company must be furnished with written proof of loss. Proof is not required if not reasonably possible to give within the time, but the claimant must comply within 1 year except in the case of legal incapacity.

3. Time to File for Recovery on the Policy

215 ILCS 5/357.12: Legal actions

Within 3 years from the time written proof of loss is required, an action to recover on an accident or health insurance policy must be brought. No such action may be brought until 60 days after written proof of loss has been furnished to the company.

Applicable statute of limitations to declaratory judgment actions is 10-year statute of 735 ILCS 5/13206, not 5-year statute of 735 ILCS 5/13-205. Employers Insurance of Wausau v. Ehlco Liquidating Trust, 309 Ill. App. 3d 730, 723 N.E.2d 687, 243 Ill. Dec. 384 (1st Dist. 1999).

4. Time to demand arbitration

When the policy sets out a limitation period in which a policyholder may demand arbitration with the insurer, the appellate courts are in conflict as to whether a letter from an attorney is sufficient to satisfy the policy deadline. In Hale v. Country Mutual Insurance Co., 334 Ill. App. 3d 751, 778 N.E.2d 721, 268 Ill. Dec. 455 (5th Dist. 2002) the fifth district held that an attorney's letter was sufficient. However, the first district has held it is not. Rein v. State Farm Mutual Auto Insurance Co., 407 Ill. App. 3d 969, 945 N.E.2d 94, 348 Ill. Dec. 787 (1st Dist. 2011).

Reversing the decision of the lower court, the supreme court upheld a two-year limitation in the policy for requesting arbitration, even though the accident took place in Wisconsin, which had a three-year limitation period. Country Preferred Insurance Co. v. Whitehead, 2012 IL 113365. On remand, the Appellate Court found that the 2 year policy limitation had been tolled by the pendency of the insured's claim. Country Preferred Insurance Co. v. Whithead, 2016 IL App (3d) 150080.

B. TOLLING OF...