Prejudice a must for insurer’s late-notice defense to succeed

Policyholder Perspective

By Stanley C. Nardoni

Stanley C. Nardoni practices in the insurance recovery group of Reed, Smith LLP. A graduate of DePaul University College of Law and former law clerk to an Illinois Supreme Court justice, he also holds an LL.M. in insurance law from the University of Connecticut School of Law. He welcomes comments to his columns at snardoni@reedsmith.com.

Posted December 22, 2022 11:29 AM

A new opinion from the 1st District Appellate Court, that rejected an insurer’s late-notice defense for an uninsured motorist coverage claim, provides a valuable discussion of the impact of the material breach doctrine on that issue.In Direct Auto Insurance Company (DAI) v. O’Neal, 2022 IL App (1st) 211568, the court held that a policyholder’s breach of her DAI policy’s notice provision was not material and did not foreclose coverage because “DAI suffered no prejudice due to the delay.&rdquo …

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