Insurance coverage corporations at all times appear to be on the prepared with fairly a couple of defenses up their sleeves, together with – the technical protection of late discover. The normal discover rule didn’t require the insurance coverage firm to indicate there was prejudice, it was merely sufficient for them to indicate the discover was premature. Fortunately, many states now require the insurance coverage firm to indicate that the late discover was truly prejudicial to the investigation of the declare.
Completely different states have totally different stances on this, and Mississippi is without doubt one of the states that requires prejudice.
The Mississippi Supreme Courtroom has held that,
[W]right here an insurance coverage coverage requires discover as a situation precedent to protection, protection should be allowed until the insurer suffered prejudice on account of delay; that prejudice is a query of truth.1
The court docket additional elaborated:
As we have now identified, the idea of prejudice will decide whether or not a breach of the discover obligation will trigger protection to be misplaced. That prejudice could stop protection even when the statute of limitations doesn’t.2
The secure motion for Mississippi policyholders is to be well timed and never present late discover of the loss. To learn extra on the subject of Mississippi legislation and prejudice, see Chip Merlin’s weblog publish “Mississippi Requires Prejudice For a Policyholder To Lose Protection For Failure to Seem at An Examination Underneath Oath.”
2 Id. at 342.