SECOND CIRCUIT FINDS THAT LATE NOTICE BARS CLAIMS AGAINST REINSURER
The Court of Appeals for the Second Circuit affirmed a lower court’s ruling in favor of TIG Insurance Company, finding that AIU Insurance Company’s belated notice of claim to TIG under nine certificates of facultative reinsurance issued by TIG barred AIU’s claim. AIU submitted its claim almost four years after it settled with its insured regarding numerous asbestos-related lawsuits. Central to the Second Circuit’s ruling was its conclusion that, under New York’s choice of law rules, the substantive law of Illinois – and not New York – applied to the question as to the legal effect of the late notice. Under Illinois law, TIG was not required to prove it was prejudiced resulting from AIU’s late notice. AIU Insurance Co. v. TIG Insurance Co., No. 13-1580-cv (2d Cir. Aug. 27, 2014).
This post written by Leonor Lagomasino.
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