The Maryland Court of Appeals issued an opinion addressing when the statute of limitations begins to run against an insured motorist in an underinsured motorist claim against their insurance company. The case arose after an underinsured at-fault motorist offered $20,000 to an insured car accident victim. In April 2011, the plaintiff was braking her vehicle as she approached slowing traffic when the underinsured driver rear-ended her. After the initial collision, the plaintiff hit her brakes, but the driver slammed into her for a second time. The plaintiff suffered serious injuries and required several years of medical treatment.
The rear-end driver was underinsured, and her liability insurance covered up to $20,000 per person in bodily injury coverage. The plaintiff had uninsured and underinsured motorist coverage (UIM) of up to $300,000 per person. Two years after the accident, the at-fault driver’s insurance company offered the plaintiff $20,000 to release all claims against them, on the condition that the victim’s insurance company would waive its right to subrogation. Her insurance company agreed and began settlement negotiations. In January 2015, the plaintiff sent a formal demand letter to her insurance company requesting recovery under her UIM benefits. The company acknowledged receipt and notified her that a review was pending and requested additional medical documents. The insurance company contacted the plaintiff’s attorney in February, March, April, and June, to follow-up on its request. During this time, the insurance company did not deny the plaintiff’s claim.
In 2016, the plaintiff filed a lawsuit against the insurance company seeking the balance of unpaid damages not covered by the at-fault driver’s insurance company. The insurance company filed a motion to dismiss, claiming that the lawsuit was time-barred because the three-year statute of limitations had passed.