George v. Massachusetts Mutual Life Insurance Company, 1:17-cv-01073

Nancy F. George purchased a disability policy from Massachusetts Mutual (MassMutual) effective May 16, 1995; monthly benefit $7,500 with extended benefits through May 16, 2012.
George claimed partial disability beginning in 2009 and total disability in 2010 for clinical depression; MassMutual paid benefits from Sept. 23, 2010 to May 22, 2012, totaling about $152,865, but paid no partial-disability benefits.
On May 23, 2012 MassMutual sent a Denial Letter stating George did not meet policy eligibility, that benefits ceased as of May 22, 2012, and that she had received a "final payment," while inviting internal appeals.
George submitted supplemental information and pursued MassMutual’s internal appeals through December 5, 2013 and additional reviews through June–July 2015; she also filed a complaint with the Maryland Insurance Administration.
George filed suit in state court on December 2, 2016 for breach of the policy and declaratory relief; MassMutual removed the case to federal court and moved for summary judgment asserting the three-year statute of limitations had run.

Issue	Plaintiff's Argument	Defendant's Argument	Held
When did George's breach-of-contract claim accrue for C.J. § 5-101?	Accrual did not occur until MassMutual completed its internal "appeal review" (Dec. 5, 2013 or later), so suit filed Dec. 2, 2016 is timely.	The claim accrued no later than May 23, 2012 when George received the Denial Letter and MassMutual stopped paying benefits; three-year limitations expired May 2015.	Court held accrual occurred in May 2012 when payments ceased/Denial Letter issued; suit filed in Dec. 2016 is time-barred.
Does an insurer’s invitation to internally appeal or reconsider toll the statute or require exhaustion before suing?	Equates insurer’s internal review to administrative exhaustion; believes invitation to appeal prevented timely suit until appeal denied.	No statutory or doctrinal basis requires exhaustion of a private insurer’s internal appeal; insurer’s invitations do not toll limitations.	Court rejected tolling/exhaustion argument and held internal appeal invitations do not postpone accrual or toll limitations.

Curry v. Trustmark Ins. Co., [citation="600 F. App'x 877"] (4th Cir. 2015) (breach accrues when insurer stops paying benefits; internal consideration does not restart limitations)
Mobley v. New York Life Ins. Co., 295 U.S. 632 (1935) (refusal to pay a monthly benefit is sufficient to constitute a breach)
Himelfarb v. Am. Exp. Co., 301 Md. 698 (1984) (debtor’s statements of future resolution do not toll accrual; creditor's cause of action accrues upon debtor’s repudiation)