In McDonald v. Farm Bureau Ins. Co., 2008 WL 1810169 (Mich.), the Supreme Court of Michigan answered the questions of whether a contractual limitations period in an insurance policy was tolled from the time a claim was made until the insurance company denied the claim; and, if it was not, whether the limitations period could be avoided under the doctrines of waiver or estoppel.

In McDonald, the plaintiff was injured in an automobile accident in November, 2001. Although the policy under which she was covered included UIM coverage, it contained an endorsement that provided: “No claimant may bring a legal action against the company more than one year after the date of the accident.” The policy also had a clause prohibiting the insured from settling without defendant's written consent, and stating that defendant “shall be obligated” to respond within 30 days to the insured's request to settle.