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Important Change In NY Insurance Law

July 18, 2008

On July 21, New York will undergo a dramatic change in insurance law in two important respects:  (1) personal injury claimants will be allowed to institute coverage litigation directly against insurers before a judgment has been entered against the insured, changing New York into a "direct action" state; and (2) an insurer will only be entitled to disclaim coverage on late notice where the insurer can establish prejudice.  For a detailed discussion of these changes to New York insurance law, please refer to our complete treatment contained in the upcoming edition of CM Report NY.

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