Late Notice Precludes Coverage for False Claims Act Settlement

When most people think of liability insurance, they think about the insurer’s payment obligations. But policyholders have obligations under liability insurance policies, too. Among the most important policyholder obligation is the requirement to provide timely notice of claim. The failure to provide timely notice can entirely preclude coverage, as is illustrated in a ruling in a recent coverage dispute arising out of an underlying False Claims Act claim. As discussed below, there were a number of circumstances involved in the underlying claim that the policyholder argued excused or at least explained its late provision of notice. However, the court rejected these arguments and held the late notice was not excused and that coverage was precluded. The February 12, 2019 order in the case by Central District of California Judge Stephen V. Wilson can be found here.   Underlying False Claims Act Litigation and Related Proceedings At all relevant times, PAMC, Ltd. operated…

Read more detail on Recent Securities Law posts –

This entry was posted in Securities Law and tagged , , , , , , . Bookmark the permalink.

Leave a Reply