Matter of Allcity Ins. Co., 73 N.Y.2d 871 (1989)

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An insurer’s duty to issue a timely disclaimer arises when the insurer first learns of the grounds for disclaimer of liability or denial of coverage; a disclaimer is timely if made within a reasonable time after acquiring such knowledge.

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Summary

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Allcity Insurance Company was notified by its insured, the appellant, of an “uninsured motorist claim” following an automobile accident. Months later, the appellant demanded arbitration, characterizing the accident as a