That Law by William McFarlane Company Responds to Florida’s 4th Circuit Court of Appeals recently upheld the lower court decision in South Florida Imaging & Diagnostic Center a/a/o Hronsky Branislav v. Progressive Select Ins. Co., and shares with its clients how this ruling impacts insurance companies’ future strategies.

The judgment related to an insurance claim from 2013, the limitation period for which is 5 years.

The plaintiff initially submitted a reimbursement invoice on May 18, 2013, which was received by the insurance company on June 4, 2013. The invoice was reimbursed together with the declaration of performance within 6 days.

The plaintiff then submitted a letter of formal notice on December 11, 2017, to which the carrier responded on January 10, 2018. The carrier granted additional financial benefits and included a reminder that read, “No further payments will be made.”

The court upheld a lower court’s decision that the Jan. 10, 2018 response constituted a “significant event” — and reinstated a five-year statute of limitations. The plaintiff thus had a further five years to assert further claims for benefits.

In light of this ruling, McFarlane Law has provided insurance companies with new guidance on how to deal with collection letters:

Collection letters received within a 5-year statute of limitations should be promptly and duly responded to, while insurers recognize that this will trigger the 5-year period again.

Collection letters received after a 5-year statute of limitations has expired should be ignored without a reply, so that a reply does not trigger the 5-year period again.

A spokesman for the law firm further commented on the ruling: “While this 4th DCA ruling may be troubling, our role as litigators is to advise insurance companies on how best to protect themselves….