In his recent article published by the AIDA Reinsurance and Insurance Arbitration Society, ARIAS•U.S., Freeborn Partner and Insurance and Reinsurance Industry Team member Sean Thomas Keely offers insights about late notice under New York law. He writes that there is no “bad faith exception” under New York law because there is no reinsurance-specific prejudice rule, and bad faith is not simply an exception. He further concludes that, like any other material breach of contract under New York law, late notice resulting from bad faith can relieve a reinsurer from its obligation to pay the late-noticed claim. Mr. Keely’s article was published in the second quarter 2019 issue of ARIAS•U.S. Quarterly.
To read the article, click here.