North America - December 6th, 2017

New York

(1) When does the limitation period start to run for insurance contract?

The laws concerning limitation vary from state to state. For New York, the six year limitation period will start to run from the date of accrual of the cause of action. This will be the date on which the insurer denies coverage.

(2) When does the limitation period start to run for reinsurance contracts?

The six year limitation period will run from the date the reinsurer denies coverage.

(3) Can the limitation period be suspended and/or interrupted, and if so, how?

The parties can enter into a tolling agreement, suspending the limitation period.

(4) Can the express terms of the insurance policy and/or reinsurance contract have the effect of altering the start date for the limitation period?

Yes, this is possible, but if this has the effect of reducing the limitation period, it must be reasonable in the particular circumstances of the case.

Canada

(1) When does the limitation period start to run for insurance contract?

Actions on insurance contracts are subject to specific limitation periods provided for in provincial limitations and insurance legislation. If the specific limitation provision allows for it, courts in insurance cases have adopted the "discoverability" rule by which time starts to run when the insured knew or ought to have known that loss had occurred. The "discoverability" rule is the applicable rule in the province of Ontario. For most provinces, claims will be barred two years after the applicable period started to run though a consultation of each provincial legislative scheme is essential since limitation period will vary depending on the type of action.

A party is not permitted to delay the commencement of proceedings from the date the claim is fully ripened for some tactical or other reason. A claim is fully ripened when a proceeding would be an appropriate means to seek a remedy when having regard to the nature of the injury, loss or damage. Appropriateness means "legally appropriate" and is assessed on the specific facts of each case.

In other instances, the applicable limitation period will begin to run from a fixed event (i.e. the date of injury/loss), unrelated to the plaintiff's knowledge of a cause of action. The limitation period for a claim relating to a denial of insurance benefits will run from the date that an unequivocal denial of benefits is received by the insured.

(2) When does the limitation period start to run for...