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Matter of American Cas. Ins. Co. v. Silverman

Appellate Division of the Supreme Court of New York, Second Department
Apr 13, 2000
271 A.D.2d 528 (N.Y. App. Div. 2000)

Opinion

Argued February 25, 2000.

April 13, 2000.

In a proceeding pursuant to CPLR article 75 to stay arbitration of a claim for underinsured motorist benefits, the appeal is from an order of the Supreme Court, Suffolk County (Doyle, J.), dated May 18, 1999, which granted the application.

Benedict P. Morelli Associates, P.C., New York, N.Y. (David S. Ratner and David Sobiloff of counsel), for appellant.

Feeney, Gayoso Fitzpatrick, LLP, Hauppauge, N.Y. (Rosa M. Feeney of counsel), for respondent.

WILLIAM C. THOMPSON, J.P., GABRIEL M. KRAUSMAN, ANITA R. FLORIO, ROBERT W. SCHMIDT, JJ.


DECISION ORDER

ORDERED that the order is affirmed, with costs.

The relevant provision of the insurance policy required that the appellant give notice of the claim to the petitioner "as soon as practicable". Therefore, the appellant was required to give notice "within a reasonable time under all the circumstances" (Security Mut. Ins. Co. of New York v. Acker-Fitzsimons Corp., 31 N.Y.2d 436, 441 ; see, Matter of Nationwide Mut. Ins. Co. [Oglesby], 219 A.D.2d 771 ). "Absent a valid excuse, failure to satisfy the notice requirement of an insurance policy vitiates insurance coverage" (Matter of Travelers Ins. Co. v. Littleton, 218 A.D.2d 661, 662 ). The appellant provided notice of a possible underinsurance claim more than 18 months after the accident and failed to demonstrate that he acted with due diligence in ascertaining the insurance status of the offending vehicles (see, Matter of State Farm Mut. Auto. Ins. Co. v. Adams, 259 A.D.2d 551 ; cf., Matter of Nationwide Mut. Ins. Co. v. Edgerson, 195 A.D.2d 560, 561 ).

The timeliness of an insurer's disclaimer is measured from the point in time when it first learns of the ground for denial of coverage (see, Matter of Allcity Ins. Co. [Jimenez], 78 N.Y.2d 1054 ;Hartford Ins. Co. v. County of Nassau, 46 N.Y.2d 1028 ). Under the circumstances of this case, the petition to stay arbitration was a timely notice of disclaimer under Insurance Law § 3420 (see, State Farm Ins. Co. v. Velasquez, 211 A.D.2d 636 ).


Summaries of

Matter of American Cas. Ins. Co. v. Silverman

Appellate Division of the Supreme Court of New York, Second Department
Apr 13, 2000
271 A.D.2d 528 (N.Y. App. Div. 2000)
Case details for

Matter of American Cas. Ins. Co. v. Silverman

Case Details

Full title:IN THE MATTER OF AMERICAN CASUALTY INSURANCE COMPANY, respondent, v. JAMES…

Court:Appellate Division of the Supreme Court of New York, Second Department

Date published: Apr 13, 2000

Citations

271 A.D.2d 528 (N.Y. App. Div. 2000)
705 N.Y.S.2d 676

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