Massachusetts Health & Accident Insurance Practice Exam

What is the maximum period allowed to take legal action against an insurer after a claim?

1. 30 days

2. 60 days

3. 5 years

4. 10 years

The correct answer is: 5 years

The maximum period allowed to take legal action against an insurer after a claim is five years. This period is established under Massachusetts law, which stipulates that policyholders have a time frame of five years from the date of the insurance company's denial of a claim to initiate legal proceedings. This timeframe ensures that individuals have sufficient opportunity to pursue their rights under the policy and ensures that disputes can be resolved in a reasonable time frame. The other options, though they represent shorter time periods, do not align with the legal standard established in Massachusetts. While 30 days and 60 days may be relevant for specific claim processes or notices, they are not applicable for the statute of limitations for initiating a lawsuit. The ten-year option exceeds the statutory limit set for such claims under Massachusetts law. Thus, the selection of five years as the correct answer is consistent with the requirements of legal action related to insurance claims in Massachusetts.