In my previous blog I discussed how in Arizona, if a policyholder submits a claim that is deemed late, the insurance company cannot deny the claim on that basis unless it can show actual prejudice from the delay. Now, what happens when the policyholder files a lawsuit after the statute of limitations has already expired? Is the policyholder’s lawsuit automatically barred? The short answer is no.

Continue Reading In Arizona, the “Prejudice” Rule Applies to Late Lawsuits Filed Against Insurance Companies

In practically every insurance policy, a policyholder is required to give prompt notice of the claim before the insurance company has any responsibility to act on the claim.

What happens if the policyholder substantially delays in giving notice of the claim, or in some circumstances, fails to give notice altogether? Is the policyholder’s claim automatically barred or forfeited?

Continue Reading In Arizona, Delayed Notice of a Claim Does Not Necessarily Nullify Coverage

Most of my blog posts are about hurricanes, roof leaks and fires This week I write about a theft claim submitted under a property insurance policy. American Pepper was a business insured under a policy with Federal Insurance Company. When property was stolen from American Pepper, notice of the loss was given to Federal. After its investigation, Federal sent a letter denying the claim under the concealment and misrepresentation provisions in the policy. 

Continue Reading Court Rules on Insurer’s Burden of Proof for Defense of Misrepresentation