New Ruling Means Ky. Insurers May Rely On Notice Deadlines

Law360 (May 28, 2021, 3:12 PM EDT) -- In many jurisdictions, the notice-prejudice rule prevents an insurer from denying coverage for a claim on the basis that the policyholder did not provide timely notice, unless the insurer can demonstrate material prejudice resulting from that late notice.

This rule is often applied in the context of occurrence policies, which afford coverage if an accident, a negligent act or omission or a resulting injury occurs within the policy period, regardless of when a suit is filed or a claim is made. Occurrence policies often condition coverage on prompt notice, or notice as soon as practicable.

However, in most states, the notice-prejudice...

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