Quote of the Day - When in doubt, predict that the present trend will continue.
That's straight from the mouth of two justices from the majority decision in the case of Great Canal Realty Corp. v. Seneca Insurance Company, Inc. (subscription may be needed). They said that while New York courts have historically been reluctant to inhibit freedom of contract, the Supreme Court (called the Court of Appeals in NY) wouldn't tolerate the insurance company's "prejudice" claims for late claims.
The whole case (again, subscription may be needed) turns on this word: "immediate." Which is what the insurance companies have demanded in the contract (policy) for notification of a claim. Then, when an insured doesn't tender the claim "immediately," ... well you already know don't you: it's a big stamp.
Not any longer, at least in New York. We'll see if this ruling spreads to other jurisdictions.
I thought trends started in California.