Insurance 101 – Chapter 8 – Volume 52 – The Private Limitation of Action Provision – 3

The Private Limitation of Action Provision – 3

The courts are now beginning to acknowledge the importance of these clauses. The California Supreme Court, in Prudential-LMI, has established that, in California, they were wrong to pay losses that manifested themselves before a policy incepted or after it expired. Insurers took public-spirited actions at a time when the law was confusing with regard to claims of continuing and progressive losses. Their interpretation of insurance coverages in this manner, however, has resulted in insurers paying claims neither contemplated by the policy nor capable of being paid under any reasonable interpretation of the time bar in the insurance contract or the statute of limitation.

The following video was adapted from my book, “Insurance Claims A Comprehensive Guide” Published by the National Underwriter Company and is available at the Zalma Insurance Claims Library

Legal Disclaimer

The author and publisher disclaim any liability, loss, or risk incurred as a consequence, directly or indirectly, of the use and application of any of the contents of this blog. The information provided is not a substitute for the advice of a competent insurance, legal, or other professional. The Information provided at this site should not be relied on as legal advice. Legal advice cannot be given without full consideration of all relevant information relating to an individual situation.


Leave a Reply

Your email address will not be published.

This site uses Akismet to reduce spam. Learn how your comment data is processed.