Insurance 101 – Chapter 11 – Volume 34 – Duties of the Insurer – 3

Duties of the Insurer – 3

The state of New York has special rules that can create problems for insurers who do not resolve claims quickly and in good faith. Under New York law, an insurer must notify an insured as “soon as is reasonably possible” of its intention to disclaim coverage for bodily injury under a policy. New York Courts find that “A failure by the insurer to give such notice as soon as is reasonably possible after it first learns of the accident or of grounds for disclaimer of liability or denial of coverage, precludes effective disclaimer or denial.” The reasonableness of the delay is measured “from the point in time when the insurer first learns of the grounds for disclaimer of liability or denial of coverage.”

The following video was adapted from my book, “Insurance Claims A Comprehensive Guide” Published by the National Underwriter Company and is available at the Zalma Insurance Claims Library

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