What does it mean when periods of limitations are tolled in insurance claims?

When periods of limitations are tolled in insurance claims, it refers to the temporary suspension of the time frame within which a party can initiate a lawsuit. In this context, tolling specifically indicates that the time limit for filing a claim begins upon the occurrence of certain events, such as the insurer's payment or denial of the claim. This allows the claimant to have a fair opportunity to respond to the insurer's actions before the statute of limitations starts counting down.

Tolling ensures that individuals are not unfairly disadvantaged by strict time limits while they are waiting for a decision or resolution from the insurer. It provides a measure of flexibility and fairness in the claims process, reflecting the understanding that claimants should not be penalized for delays that may be beyond their control, particularly when awaiting an insurer’s decision.

Understanding this aspect of tolling is crucial for anyone involved in insurance claims, as it directly impacts the timing of legal actions that may be necessary if disputes arise regarding the handling of those claims.