Delay in Disclaiming Coverage for Late Notice Excused for Investigation
Tully Construction Co., Inc. v. TIG Ins. Co. (NY App. 2nd Dept. Sept. 27, 1007)
Court holds that excess carrier’s delay in disclaiming coverage for late notice was not unreasonable under NY Ins. Law §3420(d), where insurer was presented with circumstances, including representations form its insured, that notice had previously been provided by the insured’s broker. Thus, timeliness of notice was not immediately apparent to the insurer upon receipt of the claim, but warranted further investigation.
