Quadrino Schwartz, your resource for Insurance, Class Actions, and Business Law

Long Awaited Legislative Victory in New York—Will Denials for Late Notice be Dead?

Both houses of the New York Legislature have passed a bill that would prohibit insurance companies from denying claims based upon alleged late filing of the claim (late notice).  The late notice defense has been one of the most harsh and unfair bases for claim denials in New York.  Claims are often filed late for a number of valid reasons, but until now, lateness could be fatal to a policyholders' claim.

The new law would protect policyholders under all types of insurance, including homeowners, general liability, professional liability, health insurance, disability, property and casualty, just to name a few. 

The bill has been sent to Governor Spitzer for his signature.  In light of the Governor's stance on similar issues, the proponents of the bill are optimistic.  If it is signed into law, it will have a dramatic and positive impact upon the citizenry of New York.