In their recent Law360 Expert Analysis, BatesCarey’s Kristi S. Nolley and Lindsey D. Dean address rejection of the notice-prejudice rule for claims-made-and-reported policies in a matter of first impression in Kentucky.

In many jurisdictions, the notice-prejudice rule prevents insurers from denying coverage for a claim on the basis that the policyholder did not provide timely notice, unless the insurer can demonstrate material prejudice resulting from that late notice. However, the rule does not apply to late notice under claims-made-and-reported insurance policies in most states. 

On March 19, in a matter of first impression for Kentucky state courts, the Kentucky Court of Appeals aligned with the majority of jurisdictions holding that the notice-prejudice rule did not apply to a claims-made-and-reported professional liability policy with their decision in Darwin National Assurance Co. v. Kentucky State University.

To read Kristi’s and Lindsey’s analysis in Law360, click here.