The Significance Of Prompt Notice Of Circumstance

Law360, New York (January 26, 2009, 12:00 AM EST) -- In recent times, the status of “procedural” policy provisions has exercised the English commercial courts considerably. The difference in status between procedural conditions which are conditions precedent to claims, and those which are not, is important.

Failure to comply with a condition precedent may entitle insurers to decline a claim. A mere “condition” is toothless; breach does not affect the validity of the claim, and insurers’ only remedy is damages for prejudice — something notoriously difficult to establish.

Three recent cases cast substantial light on issues...
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