A-18-14 Templo Fuente De Vida Corp v. National Union Fire Insurance Company of Pittsburgh

In this appeal, we are called upon to determine whether, in order to disclaim coverage, an insurance company must show it was prejudiced by an insured’s failure to comply with the notice provision in a Directors and Officers “claims made” policy.

In the instant case, the insured, who had been sued for damages by plaintiffs, entered into a settlement whereby it agreed to assign its rights and interests under the insurance policy to plaintiffs. However, when plaintiffs sought to recover under the policy, the insurer denied coverage because the insured breached the policy’s notice conditions. The…