§431:10C-315 Statute of limitations. (a) No suit shall be brought on any contract providing motor vehicle insurance benefits or any contract providing optional additional coverage more than the later of:

(1) Two years from the date of the motor vehicle accident upon which the claim is based;

(2) Two years after the last payment of motor vehicle insurance benefits;

(3) Two years after the entry of a final order in arbitration;

(4) Two years after the entry of a final judgment in, or dismissal with prejudice of, a tort action arising out of a motor vehicle accident, where a cause of action for insurer bad faith arises out of the tort action; or

(5) Two years after payment of liability coverage, for underinsured motorist claims.

(b) No suit arising out of a motor vehicle accident shall be brought in tort more than the later of:

(1) Two years after the date of the motor vehicle accident upon which the claim is based;

(2) Two years after the date of the last payment of motor vehicle insurance or optional additional benefits; or

(3) Two years after the date of the last payment of workers' compensation or public assistance benefits arising from the motor vehicle accident. [L 1987, c 347, pt of §2; am L 1997, c 251, §49; am L 1998, c 275, §28]

Case Notes

Section requires suit for breach of contract to be filed within two years after receipt by claimant of last benefit payment. 794 F. Supp. 1012 (1992).

Summary judgment granted in favor of defendant with respect to any claim seeking to recover underinsured motorist benefits under automobile insurance policy, where any claim regarding underinsured motorist benefits, including the bad faith denial thereof, was barred by the limitations period set forth in this section (pre-1997 amendment). 11 F. Supp. 2d 1204 (1998).

Controlling date for the purpose of calculating the statute of limitations for plaintiff's claims of tortious breach of contract and bad faith denial of insurance benefits was two years after the last payment of motor vehicle insurance benefits; the date of plaintiff's receipt of payment, within three days of the date on which the payment was mailed, was the date on which the statute of limitations began to run. 520 F. Supp. 2d 1212 (2007).

Based on the plain language of subsection (a)(2) (1993), plaintiff's claim for no-fault benefits was not barred, where the last payment of no-fault or optional additional benefits was made not more than two years before plaintiff filed complaint against insurer. 109 H. 537, 128 P.3d 850 (2006).

Where the question of whether the underinsured motorist benefits settlement from non-party insurer would trigger the two-year statute of limitations under subsection (a) (1993) for plaintiff's claim against defendant insurer was an open question of law until this case, there was no bad faith on the part of defendant insurer for having denied plaintiff's claim for no-fault benefits on the basis of the statute of limitations. 109 H. 537, 128 P.3d 850 (2006).

Where plaintiff's negligence action was filed more than two years after insurance company made its lump sum payment to plaintiff in full satisfaction of the release, plaintiff's suit was time-barred. 105 H. 66 (App.), 93 P.3d 1173 (2004).

The doctrine of equitable tolling cannot be applied to expand the two-year statute of limitations period in this section (1993) based solely on an issuer's failure to provide a formal notice of denial required pursuant to §431:10C-304(3) (1993) in conjunction with a reduced or partial payment. 117 H. 502 (App.), 184 P.3d 817 (2008).