(DOWNLOAD) "Matter Jeffrey Blee v. State Farm Mutual Automobile Insurance Company" by Supreme Court of New York ~ eBook PDF Kindle ePub Free
eBook details
- Title: Matter Jeffrey Blee v. State Farm Mutual Automobile Insurance Company
- Author : Supreme Court of New York
- Release Date : January 24, 1990
- Genre: Law,Books,Professional & Technical,
- Pages : * pages
- Size : 82 KB
Description
DECISION & ORDER On March 21, 1987, the petitioner was a passenger in a car, owned and operated by his friend, which
was involved in a one-car accident on the Ohio Turnpike. As a result of the accident the petitioner sustained bodily injuries.
The petitioner received $50,000, the policy limit, from the insurer of the motor vehicle. In late October 1987, the petitioner
mailed a letter to the respondent State Farm Mutual Automobile Insurance Company, which was his own insurance company, informing
it that he was making a claim under the underinsured motorist provisions of the policy. the petitioner in addition mailed
a signed statement relating the circumstances surrounding the accident. On November 27, 1987, the respondent sent a letter
to the petitioner reserving its right to deny coverage on the ground that a settlement had been reached without its written
consent, and by letter dated May 18, 1988, denied underinsured benefits based upon the exclusion in its policy for insureds
who settle without its written consent. Insurance Law § 3420(d) requires written notice of a disclaimer to be given "as soon as is reasonably possible" after the
insurer first learns of the accident or of grounds for disclaimer of liability or denial of coverage (see, Zappone v Home
Ins. Co., 55 N.Y.2d 131; Hartford Ins. Co. v County of Nassau, 46 N.Y.2d 1028; Farmers Fire Ins. Co., v Brighton, 142 A.D.2d
547). It is settled law that if this provision applies, it is the carrier's burden to explain its delay in notifying the insured
of its disclaimer or denial, and that a reservation of rights letter does not constitute compliance with its requirements
(see, Zappone v Home Ins. Co., supra). Under the circumstances, the respondent's delay of more than six months in disclaiming
was unreasonable as a matter of law and the respondent is estopped from making a disclaimer (see, Hartford Ins. Co. v County
of Nassau, 46 N.Y.2d 1028, supra; Farmers Fire Ins. Co., v Brighton, supra; Allstate Ins. Co., v Kuper, 140 A.D.2d 479; Matter
of Metropolitan Prop. & Liab. Ins. Co., v State Farm Mut. Auto Ins. Co., 119 A.D.2d 558; Foremost Ins. Co., v Rios, 85
A.D.2d 677).