The Insurance Law requires insurers to disclaim coverage for a personal injury claim “as soon as is reasonably possible.” The question has frequently arisen that if the insurer suspects the insured’s notice was late and there are other grounds on which to disclaim coverage, when should the insurer first disclaim coverage? Previously, the Appellate Division, First Department, held the insurer could disclaim promptly after it completed its investigation, even if it learned of the insured’s late notice prior to a complete investigation. The preferred approach was to disclaim coverage for late notice and then supplement the disclaimer once it had additional information.
Insurers, as a matter of custom, acknowledge the notice with a prompt letter. If late notice is suspected, the usual letter cites the specific notice condition, reserves the insurer’s rights and requests information required to assist in the investigation, including, for example, possibly relevant insurance policies, contracts, statements and status reports, if the matter is in litigation. If the insurer disclaims coverage, it will invite the insured to supply any information to the insurer that will be helpful to the insured’s request.
This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.
To view this content, please continue to their sites.
Not a Lexis Subscriber?
Subscribe Now
Not a Bloomberg Law Subscriber?
Subscribe Now
LexisNexis® and Bloomberg Law are third party online distributors of the broad collection of current and archived versions of ALM's legal news publications. LexisNexis® and Bloomberg Law customers are able to access and use ALM's content, including content from the National Law Journal, The American Lawyer, Legaltech News, The New York Law Journal, and Corporate Counsel, as well as other sources of legal information.
For questions call 1-877-256-2472 or contact us at [email protected]
