To Insurers' Dismay, Colo. Expands Notice-Prejudice Rule

Law360, New York (September 26, 2013, 11:29 AM EDT) -- In the closely watched Stresscon Corp. coverage case, a Colorado appeals court recently held for the first time that policyholders that settle presuit claims without a liability insurer's permission can still win coverage if they show the carrier wasn't prejudiced, creating a significant roadblock for insurers despite a legal presumption in their favor, attorneys say.

The court provided the new guidance in a Sept. 12 ruling weighing the concrete company's fight with Travelers Property Casualty Co. of America over a construction accident near Colorado Springs that...
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