What is the time limit for filing a legal action against an insurer for denied benefits in Virginia?

In Virginia, the time limit for filing a legal action against an insurer for denied benefits is two years from the date the insurer denied the claim. This period is in line with the statute of limitations that applies to breach of contract claims, which includes disputes over insurance policy benefits. By setting this time frame, the law ensures that both the insured and the insurer have a clear understanding of the timeline within which legal recourse can be pursued, promoting timely resolution of disputes.

Choosing a period longer than two years or stating there is no time limit could lead to uncertainty and potential injustice for both parties, as memories of events can fade and evidence may become less reliable over time. Thus, the two-year limit is essential for the proper functioning of legal processes related to denied insurance benefits.