Is the Court of Appeals Shifting Toward Requiring the Prejudice Rule for Notice of Claim Disclaimers?

The New York Court of Appeals will hear oral arguments on the issue whether an insurer must demonstrate prejudice where the insurer receives late notice of an underlying action concerning its insured and has not received prior notice of the claim before the action was commenced. The case in which the Court granted appeal is ARGO Corp. v. Greater N.Y. Mut. Ins. Co..

As noted in one prior post, the Court also granted leave to appeal with respect to a notice of claim issue in an appeal that also hinted to the prejudice issue.

At least one Justice thinks the tide is changing toward requiring a prejudice rule for notice of claim issue (see prior post).

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