Duties in Event of Occurrence: Many Insurance Policies Do Not Purport to Make Notice a Condition Precedent

Insurance policies typically contain provisions requiring prompt notice to the insurance company of an event that could lead to coverage under the policy. There is a well-known split among U.S. jurisdictions as to whether an insurance company can succeed in barring coverage based on untimely notice if it has not suffered prejudice from the timing of notice. The majority and modern trend is for jurisdictions to hold that an insurance company cannot succeed on a late notice defense absent actual prejudice. <i>See, e.g.,</i> 1 Barry R. Ostrager &amp; Thomas R. Newman, <i>Handbook on Insurance Coverage Disputes</i> &sect;4.02[c][2] (12th ed. 2004) ("Ostrager &amp; Newman"). A minority of jurisdictions holds that notice can be treated as a "condition precedent"; that is, coverage can be barred based on late notice even in absence of any harm to the insurance company. <i>Id.</i> &sect;4.02[c][1].

33 minute read January 24, 2005 at 03:46 PM

By

Michael T. Sharkey