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52-Day Delay in Disclaiming Coverage Did Not Violate a Requirement for Timely Disclaimer

The Second Circuit recently confirmed that a liability insurer that waits to deny coverage so that it can investigate the facts giving rise to the disclaimer will not be estopped from denying coverage provided that the insurer does not use the investigation as a tactic to delay the disclaimer.

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July 22, 2019

The United States Court of Appeals for the Second Circuit ruled that an insurer who waits to deny coverage so that it can investigate facts giving rise to a disclaimer will not be prevented from denying coverage under Insurance Law Section 3420(d)(2), as long as the insurer does not use the investigation as a tactic to delay the disclaimer. The case is United Fin. Cas. Co. v. County-Wide Ins. Co., No. 18-3022, 2019 U.S. App. LEXIS 19581 (2d Cir. July 1, 2019).

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