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Reed Smith on An Analysis of West American Ins. Co. v. Yorkville Nat'l Bank:Twenty-Seven Month Delay Not Unreasonable Notice According to Illinois Supreme Court

By Emily E. Garrison, associate, Reed Smith, LLP Few states follow the minority rule that an insured’s failure to give reasonable notice of a claim to its insurer will defeat the right of the insured to recover under a policy. In determining whether notice was or was not reasonable, some states...

Reed Smith LLP on Avoiding Disproportionate Forfeiture of Insurance Coverage Through Doctrines of Waiver, Estoppel, Mend the Hold, Prejudice, and Good Faith and Fair Dealing

By Timothy P. Law and Lisa A. Szymanski, Attorneys, Reed Smith LLP This article discusses various doctrines applied by courts to avoid the technical forfeiture of insurance coverage. These doctrines include waiver, estoppel, "mend the hold," the requirement of prejudice, and the duty of...

Ten Most Significant Insurance Coverage Decisions Of 2013 – Texas Supreme Court: Insured’s Settlement Without Insurer’s Consent Covered Insured’s Texas 1-Step: Settle And Skip Insurer’s Consent

As a general rule, when an insured is tardy in providing notice of claim to an occurrence-based liability insurer, the insurer is not relieved of coverage, on such ground, unless it can demonstrate that it was prejudiced by such late notice. This is often-times a high hurdle for the insurer to meet....

Noticeable Confusion - "Claims Made" Policies, Late Notice, And When Your Insurer Must Prove Prejudice To Avoid Coverage

By John E. Heintz, John A. Gibbons, and Omid Safa An adverse claim is an unwelcome surprise to any business, particularly those unaccustomed to being sued. A lawsuit is unsettling and brings with it a litany of pressing litigation concerns, which compound the already significant day-to-day burdens...

Maryland Court Holds Prejudice Rule Applies to Claims Made and Reported Policy

In its recent decision in Navigators Specialty Ins. Co. v. Med. Benefits Administrators of Maryland , 2014 U.S. Dist. LEXIS 22631 [ enhanced version available to lexis.com subscribers ], the United States District Court for the District of Maryland had occasion to consider whether Maryland Code §...

Insurer Required to Show Prejudice Because the Reporting Requirement in the Policy Conditions Did Not Transform the Claims-Made Policy Into a Claims-Made-and-Reported Policy

NewLife Scis. LLC v. Landmark Am. Ins. Co. , 2014 U.S. Dist. LEXIS 21469 (N.D. Cal. Feb. 18, 2014), [ enhanced version available to lexis.com subscribers ]. In NewLife Sciences , the district court held that the notice-prejudice rule was applicable to a policy that had a condition requiring claims...

Colorado Supreme Court: No Prejudice Required For “Claims Made” Policy Breach

Tapas: Small Dishes of Insurance Coverage News & Notes In what can hardly be viewed as a surprising decision, the Colorado Supreme Court held in Craft v. Philadelphia Indemnity, No. 14SA43 (Colo. Feb. 17, 2015), [ enhanced version available to lexis.com subscribers ], that, despite late notice...

Supreme Court Allows Discussion Of Insurance In Personal Injury Trial

You know the rule of evidence. Mentioning the availability of insurance, during a personal injury trial, is a big N-O. The rule is designed to prevent prejudice in the verdict, which might result if the jury is aware that an insurance company, and not the defendant, will be responsible for paying the...

Supreme Court Addresses Really, Really Late Notice: Like, After Settlement

Tapas: Small Dishes of Insurance Coverage News & Notes An insured settled a case and then gave notice to its insurer. As you may expect, the Supreme Court of Nebraska in Rent-A-Roofer, Inc. v. Farm Bureau Property & Casualty Ins. Co., No. S-14-895 (Neb. Sept. 11, 2015), [subscribers can access...