Jenner & Block

Client Advisory: New York Adopts Modern Rule on Notice for Liability Insurance

In this client advisory, Partner Lorelie S. Masters and Associate Brian S. Scarbrough discuss a new law in New York state that requires certain liability insurers to demonstrate prejudice from late notice of an insurance claim. The law abolishes New York's "no prejudice" rule for such liability insurers and brings New York law in line with the majority of states that provide that failure to give any required notice under an insurance policy shall not invalidate any claim unless such failure has prejudiced the insurer. The new law applies prospectively only and becomes effective on January 17, 2009.