Read The Contract Under ERISA!

The plaintiff filed a claim for long term disability benefits with an insurance company in a plan covered by ERISA [Employee Retirement Income Security Act of 1974; 29 U.S.C. § 1132(a)(1)(B)]. ERISA does not specify a statute of limitations for filing suit, but a cause of action does not accrue until the plan issues a final denial. In this case, plaintiff filed the ERISA action almost three years after the insurance company’s final denial, but more than three years after proof of loss was due. The insurance policy, however, had a term requiring any suit to recover benefits under ERISA to be filed within three years after proof of loss is due. Both the trial and appeals court found in favor of the insurance company. The United States Supreme Court affirmed, pointing out that contractual limitations periods should be upheld, unless the period is unreasonably short or there is a controlling statute to the contrary. (Heimeshoff v. Hartford Life & Accident Insurance Co. (U.S. Sup. Ct.; December 16, 2013) 134 S.Ct. 604, [187 L.Ed.2d 529].