When an insurance carrier or other entity pays a claim for an injured client that is not at fault for their injuries, the insurance company may then attempt to recoup payments from the party that is at fault for the incident. The process of recouping paid claims is called subrogation. Each state sets its own statute of limitations, indicating the length of time after an incident an insurance company may file a subrogation claim.
Louisiana and Tennessee only allow subrogation claims within one year of the incident in question. Kentucky's statute of limitations allows for only one year to pass before a company may no longer file a subrogation claim for a non-motor accident.
Many states set the statute of limitations for subrogation at two years from the date of the injury. These states are Alabama, Alaska, Arizona, California, Colorado, Connecticut, Delaware, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Nevada, New Jersey, Ohio, Oklahoma, Oregon, Pennsylvania and West Virginia. Kentucky's statute of limitations for subrogation is two years for motor vehicle accidents.
A statute of limitations of three years is imposed by many states, including Arkansas, Maryland, Massachusetts, Michigan, Mississippi, Montana, New Hampshire, New Mexico, New York, North Carolina, Rhode Island, South Carolina, South Dakota, Vermont, Washington, and Wisconsin. The District of Columbia also has legislated a state of limitations of three years for subrogation claims.
Florida, Nebraska, Utah and Wyoming all allow subrogation claims within four years of an incident.
The only state to impose a five-year statute of limitations for subrogation is Missouri.
The maximum statute of limitations mandated for subrogation cases is six years. This term of limitations applies to Maine, Minnesota and North Dakota.
Dan Howard is a sports and fitness aficionado who holds a master's degree in psychology. Howard's postgraduate research on the brain and learning has appeared in several academic books and peer-reviewed psychology journals.