Is there a time limit for filing a bad faith insurance claim?
Yes, most insurance policies set time limits that specific when a claim must be filed after a loss, and also when any lawsuit "on the policy" (a lawsuit seeking contract benefits) must be filed. Beyond those time limits, state law will require that a bad faith insurance claim or bad faith insurance lawsuit must be filed within a certain time following denial of the claim. Because time limits vary from state to state, and some state decisions are inconsistent, you should file a bad faith insurance claim or bad faith insurance lawsuit as soon as possible, ideally within one year from the date of the denial, in order to be certain your right to recover certain types of damages (punitive damages for example) is not lost.
You should contact an experienced bad-faith insurance attorney to evaluate your situation to see if you can bring a bad faith insurance lawsuit or claim.