Bill Signed Into Law Stops Claim Denials Based on Late Notice
New York's Governor signed into law a long-awaited bill that will prevent insurance companies from denying claims when they believe the policyholder was "late" in reporting the loss. New York was the last state in the country to maintain a harsh rule that allowed claims to be denied completely based merely upon a delay in reporting an insurance loss.
Late notification can still be a problem, just as in other states, but the insurer must show that it was harmed by the delay. In most cases, there is no harm from delay. Thus, the new law is a very important protection for all policyholders. Individuals and businesses expect to be covered when tragedy strikes and they have a valid insurance policy in place. Denied claims on the lateness technicality will now hopefully be a thing of the past.