First Circuit Sends Question on Limitations Policy Provision to Rhode Island Supreme Court

The U.S. Court of Appeals for the First Circuit certified a question to the Rhode Island Supreme Court on whether a limitations period for filing a lawsuit over a Prudential disability policy is contrary to Rhode Island public policy.

Brian Smith sued Prudential Insurance Co. of America for breach of fiduciary duty after the company terminated his long-term disability benefits under an insurance policy. That policy had a three-year limitations period to file a lawsuit. The First Circuit said the company inexplicably started the limitations clock as of the date that Smith was required to submit proof that he was not disabled, rather than on the date that Prudential allegedly breached the policy by stopping payment. By the time Smith sued, the limitations clock had already run out, according to the opinion.