Insurers’ Disclaimer Involving Environmental Damage Not Subject To Insurance Law §3420(d) Notice Requirements

This environmental coverage action involved a dispute over whether the insurers had a duty to provide coverage for the remediation of environmental damage at several manufactured gas plant (MGP) sites formerly owned by Long Island Lighting Company (LILCO) and the timeliness of the excess insurers late notice defense asserted as an affirmative defense in its answer.  Defendants issued excess insurance policies to LILCO that required, as a threshold condition for coverage, LILCO to provide prompt notice of any occurrence that potentially implicated defendants’ duty of …

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