The 30-Day Rule for Insurer Coverage Disclaimers Still Stands

Photo: Andrey Popov via Adobe Stock Photo: Andrey Popov via Adobe Stock

It is generally accepted that insurers should provide a written disclaimer of coverage “as soon as reasonably possibleAfter the insurer has factual or constructive knowledge of the grounds for doing so. Many factors are taken into account in the assessmentreasonableIn this context, however, the New York courts have typically dismissed an insurer’s denial of coverage if it occurs more than 30 days after notification of the claim. Accordingly, it was prima facie worrying that the Division of Appeals, First Division , recently voided a disclaimer of coverage that had just been issued. eight days after the insurer has received a request for coverage. However, as explained below, the First Division found that prior notice of the accident and of facts constituting grounds for rejection (without an express request from the insured for cover under the policy) was sufficient to require the carrier to timely rejection under Insurance Act § 3420 (d) (2). That’s why the “30-day rule” lives to fight another day, but great care must be taken in determining exactly when the 30-day clock starts ticking.

Comments are closed.