On April 5, 2005, the New York Court of Appeals upheld long-standing New York law that a policyholder's late notice defeats coverage under a commercial liability policy without any specific requirement that an insurer demonstrate prejudice.
New York Court of Appeals Upholds 'No Prejudice' Rule
On April 5, 2005, the New York Court of Appeals upheld long-standing New York law that a policyholder's late notice defeats coverage under a commercial liability policy without any specific requirement that an insurer demonstrate prejudice. The court disagreed with any assessment that the "no prejudice" rule was a doctrine whose time had come. It rejected a policyholder's request to apply a prejudice rule to "notice of a suit in commercial policies where the notice was admittedly late." <i>See Argo Corporation, et al. v. Greater New York Mutual Insurance Co.,</i> (N.Y. April 5, 2005). In a separate opinion issued on the same day as <i>Argo,</i> the court did apply a "prejudice" standard in the limited context of supplemental underinsured motorist ("SUM") coverage where late notice of a SUM claim followed timely notice of the underlying accident. <i>Rekemeyer v. State Farm Mutual Automobile Insurance Co.,</i> (N.Y. April 5, 2005).
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Laura FogganNicholas BonarrigoThis premium content is locked for LawJournalNewsletters subscribers only
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