Background
Jose Nader held a disability insurance policy issued in nineteen ninety-one with New York Life Insurance Company. The policy included a Cost-of-Living Benefit Rider that adjusted payments based on the Consumer Price Index for All Urban Consumers, capped at five percent annually. Nader disputed the calculation method, believing he was entitled to a guaranteed five percent increase. He learned the actual terms in two thousand and two but filed suit in two thousand and twenty-three.
The court’s reasoning
The court agreed that Nader knew the policy terms over two decades ago. Ohio law limits contract claims to fifteen years from actual knowledge. The policy also required claims within three years. The continuing violation doctrine did not apply to the continuing effects of contract terms. Both statutory and contractual limitations periods expired.
We agree with the district court’s conclusion that Nader’s claims are time-barred.
What it means going forward
Policyholders must challenge insurance calculations within the specific time limits set by state law and their contracts, regardless of ongoing payments.