Matter of Firemen’s Fund Insurance Company, 82 N.Y.2d 836 (1993)
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An insurer must provide written notice of disclaimer based on late notice “as soon as is reasonably possible” after learning of the accident or grounds for disclaimer, and failure to do so precludes effective disclaimer.
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Summary
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This case addresses the timeliness of an insurer’s disclaimer of liability based on the insured’s late notice of a claim. John Hopkins, Jr., was injured in a car accident in July 1989. He notified Firemen’s Fund Insurance Company of his intent to file an uninsured motorist claim in June 1992, almost three years after the accident. The insurer requested details, which Hopkins provided in October 1992, but offered no explanation for the delay. Firemen’s Fund did not respond until February 1993, when it sought to stay arbitration, arguing Hopkins’ notice was untimely. The Court of Appeals held that Firemen’s Fund’s delay in disclaiming liability was unreasonable as a matter of law, thus precluding an effective disclaimer.
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Facts
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On July 23, 1989, John Hopkins, Jr., sustained injuries in a car accident involving a friend’s car. Hopkins was a passenger. The accident occurred when an unknown individual allegedly took control of the vehicle by force, causing a collision.r
Nearly three years later, on June 4, 1992, Hopkins notified Firemen’s Fund Insurance Company (under his father’s policy) of his intent to file an uninsured motorist claim, asserting the vehicle was stolen at the time of the accident. Firemen’s Fund requested details about the accident and the delay in reporting. Hopkins provided the information on October 5, 1992, but did not explain the delay.r
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Procedural History
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Firemen’s Fund commenced a CPLR article 75 proceeding on February 8, 1993, seeking to permanently stay arbitration, arguing that Hopkins failed to provide timely written notice. Supreme Court granted the stay. The Appellate Division reversed, dismissed the petition, and directed arbitration.r
The Court of Appeals affirmed the Appellate Division’s order.r
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Issue(s)
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Whether Firemen’s Fund Insurance Company provided timely written notice of disclaimer for the uninsured motorist claim based on the claimant’s failure to give notice of claim “within 90 days or as soon as practicable” as required by the New York State Automobile Accident Indemnification Endorsement.r
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Holding
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No, because Firemen’s Fund failed to provide written notice of disclaimer “as soon as is reasonably possible” after learning of the grounds for disclaimer (late notice), which precluded an effective disclaimer.r
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Court’s Reasoning
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The Court of Appeals relied on the established principle that an insurer must provide written notice of disclaimer