No Showing of Prejudice Remains the Rule for Insurers to Deny Coverage Under a Claims Made Policy Based on Late Notice

Extending the reach of its holding in Zuckerman v. National Union Fire Ins. Co., 100 N.J. 304 (1985), the New Jersey Supreme Court in Templo Fuente De Vida Corp. v. National Union Fire Ins. Co. of Pittsburgh, Pa., No. A-18 (N.J. Feb. 11, 2016), ruled an insurer may deny coverage under a “claims made” policy based on late notice without having to show it was prejudiced by the late notice — even if the claim is made during the insurer’s
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Insurer Owes No Coverage for Property Damage Due to Late Notice

There was a dispute between the former executives of a dissolved construction company and its insurer over property damages. The executives of the dissolved insured had agreed to a settlement of $420,000 with home owners over allegedly shoddy work performed on their homes in 2006.  The insured had a claims-made general liability policy with the insured, and sought coverage for the $420,000 settlement. The insurer brought a motion for summary judgment based on late notice. The insured had been initially
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