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New York First Department Clarifies Effect of New York Insurance Law Section 3420 on Claims Made-and-Reported Policies | Carlton Fields


In
Certain Underwriters at Lloyd’s London v. Advance Transit Co., a New York appellate court provided valuable clarity into how New York Insurance Law section 3420 applies to claims-made-and-reported insurance policies.
Underwriters issued a claims-made-and-reported liability policy to Advance Transit Co., effective October 30, 2016, to October 30, 2017. The policy provided that if it were renewed, Advance would have an additional 60 days after the expiration of the policy to report a claim to Underwriters. A personal injury claim was made by a third party against Advance during the policy period, but Advance did not report the claim to Underwriters until after the 60-day extension had expired. Underwriters denied coverage and sought a declaratory judgment that it was not liable to indemnify Advance for the personal injury claim asserted against it. ....

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