Opinion by
In this declaratory judgment action, plaintiff, Thomas Brown (insured), appeals from an order dismissing his claim for underin-sured motorist (UIM) benefits from defendants, American Family Insurance Group and American Family Mutual Insurance Company (American Family). We affirm.
The facts are undisputed. Plaintiff was involved in a motor vehicle accident in July 1991. The other driver had liability insuranсe limited to $100,000 per accident. Plaintiff entered into a settlement of his claim against the other driver for $77,500 in January 1992.
At the time of the accident, plaintiff had a policy with Amеrican Family that provided UIM benefits in the amount of $250,000. In February 1996, plaintiff made a demand fоr UIM benefits from American Family. American Family denied the claim, asserting, among other things, thаt it was barred by a three-year statute of limitations. The trial court agreed, and this aрpeal followed.
I.
Plaintiff contends that the trial court erred in concluding that his clаim was barred by either the specific statute of limitations for uninsured/underinsured motorist benеfits, § 13-80-107.5, C.R.S.1998, or by the general statute of limitations, § 13-80-101, C.R.S. 1998. We agree with the court’s ruling on the general stаtute of limitations.
A.
American Family concedes, and we agree, that the specific statute of limitations for uninsured/underinsured motorist benefits now contained in § 13-80-107.5 does not аpply to this action.
In enacting § 13-80-107.5, the General Assembly provided that: “This act shall take effect July 1, 1994, and shall apply to any motor vehicle accident occurring on or after said date.” Colo. Sess. Laws 1994, eh. 348, § 6 at 2826. Since the accident in this case occurred in 1991, § 13-80-107.5 does not apply.
See Samples-Ehrlich v. Simon,
B.
The statute of limitations for UIM benefit claims on accidents occurring prior to July 1,1994, is the three-year general statute of limitations found in § 13-80-101.
State Farm Mutual Automobile Insurance Co. v. Springle,
Cоntrary to plaintiffs contention, we agree with the trial court that plaintiffs claim for UIM benefits accrued under the general statute of limitations at least by the time he settlеd his claim with the other driver. As a result, his action was barred by § 13-80-101.
Pursuant to § 13-80-108(4), C.R.S. 1998, a cause of action for debt, obligation, money owed, or performance accrues on thе date such debt, obligation, money owed, or performance becomes due. A claim for payment of UIM benefits represents a claim for money owed under this statute.
See Free
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man v. State Farm Mutual Automobile Insurance Co.,
To determine when plaintiff knew or should have known that his cause of action аgainst American Family had accrued, we turn to the insurance policy itself. The policy provides that it will pay for “bodily injury which an insured person is legally entitled to recover from the owner or operator of an ... underinsured motor vehicle.” It further provides:
Underinsured motor vehicle means a motor vehicle which is insured by a liability bond or policy at the time of the accident which provides bodily injury liability limits less than the damages you are legally entitled to recover.
Thus, by the terms of the policy, plaintiffs cause of action accrued by the time of them settlement. Plaintiff knew by then that the othеr driver was underinsured. However, plaintiff waited over four years before seeking any UIM benefits that may have been owed to him under the American Family policy. Under these сircumstances, we conclude that plaintiffs action was barred by the three-year statute.
To the extent that Springle may be read as also holding that the statute begins to run on the date that the insurance carrier denies the claim for benefits, we decline to follow it.
The salutаry purpose of the statute of limitations is to “promote justice by discouraging long delays, prohibiting the prosecution of stale claims, and providing closure to the parties.”
Shootman v. Department of Transportation,
Here, there is no assertion that equitable tolling should apply.
See Dean Witter Reynolds, Inc. v. Hartman,
Accordingly, because American Family’s оbligation to plaintiff accrued when he settled his claim against the driver over four yеars before he filed the claim here, the period for seeking recovery on that claim has expired.
The judgment is affirmed.