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Expert Analysis

Claims-Made Policies And The Notice-Prejudice Rule

Law360, New York ( June 5, 2015, 11:31 AM EDT) -- In a majority of jurisdictions, the "notice-prejudice rule" provides that an insurer may not deny a claim on grounds of late notice without demonstrating prejudice. The rule is statutory in some states and judicially crafted in others. Most courts, however, also hold that the rule does not apply to late notice under a claims-made-and-reported policy, as opposed to an occurrence policy. In 2015, several cases have solidified this trend and some of them actually extend it....

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