Preferred Mutual Ins. Co. v. New York Fire-Shield, Inc.
N.Y.A.D. (3d Dept., June 4, 2009)
Manufacturer was aware its fire-retardant spray was used on a product worm by two Marines when they suffered severe burns, but failed to provide notice to its insurer for two years. The appellate court found issues of fact existed regarding insured’s reasonable belief in non-liability and should be resolved by a jury.
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By Kimberly E. Whistler and Joseph A.Olivia