Deadline to file suit may be extended when insurer makes an “advance payment.”
Occasionally, a liability insurer will make an advance payment toward a claimant’s personal injury or property damage claim before final settlement. An example would be payment of the damages to the claimant’s car in an automobile accident case. When the insurer makes an advance payment, it must give written notice to the claimant of the date that the statute of limitations (the legal deadline) to file suit for the injuries will expire.