Colo. Justices Urged To Limit Notice-Prejudice Rule

Law360, Los Angeles (June 4, 2015, 5:35 PM EDT) -- Travelers Property Casualty Co. of America urged the Colorado Supreme Court on Thursday to find that policyholders that settle presuit claims without an insurer's permission can't win coverage even if they show the carrier wasn't prejudiced, arguing that allowing coverage would create a windfall for insureds and drive up premiums.

The state high court was asked to weigh in on whether liability insurers may be prejudiced as a matter of law by a policyholder's violation of a policy's "no voluntary payment" clause, and whether an intermediate appeals court's rejection of such a bright-line rule directly conflicts with the high court's 1937...

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