Insurance
Feb. 11, 2021
‘Notice-prejudice rule’ ruling could provide new arguments
The “notice-prejudice rule,” often applied in the context of occurrence-type policies, requires an insurer to prove that the insured’s late notice of a claim has substantially prejudiced its ability to investigate the insured’s claim.
Peter S. Selvin
Partner
Ervin, Cohen & Jessup LLP
Phone: (310) 281-6384
Email: steve@newsroompr.com
Chair of Insurance Coverage and Recovery Department
The "notice-prejudice rule," often applied in the context of occurrence-type policies, requires an insurer to prove that the insured's late notice of a claim has substantially prejudiced its ability to investigate the insured's claim. This principle has been applied in the context of both first-party policies. Pitzer College v. Indian Harbor Ins. Co., 8 Cal. 5th 93 (2019), applying the notice-prejudice rule to a consent provision in a first...
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