Proposed Change to NY No Prejudice Rule
It will be interesting to see whether Governor Spitzer signs the legislation that would require insurers to demonstrate prejudice as part of a late notice defense. I hope that the governor declines to sign this bill. The New York no-prejudice position is a minority view, but it is a thoroughly considered view. Insurers should be free to set conditions on their coverage, and prompt notice of claims is a very reasonable condition.
Under present New York law, insurers, I believe, are required to demonstrate prejudice as part of a late notice defense with respect to claims made pursuant to Supplementary Uninsured Motorists (SUM) coverage. Has this proven to be onerus or unfair to insurers?
P.S. This is an interesting blog. Good luck with it!