Insurer Must Notify an Insured of Contractual Limitations Period Even if Represented by Counsel: Lessons Learned Regarding Rescission Claims
February 23, 2010
In Superior Dispatch, Inc. v. Ins. Corp. of N.Y., 2010 Cal. App. LEXIS 58, the California Court of Appeals recently established that section 2695.4(a) of the California Code of Regulations, title 10, requires an insurer to notify its insured claimant of contractual limitations provisions that may apply to a claim. And, this remains true even where the insured claimant is represented on the claim by counsel, notwithstanding section 2695.7(f). The decision also provides a cautionary tale for insureds as it held that Superior Dispatch's policy was void based on a misrepresentation in the policy application.
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