PA Superior Court Addresses Notice in Claims Made and Occurrence Policies.

In the case of Ace American Insurance Co. v. Underwriters and Lloyds, (December 20, 2007), the Superior Court ruled on the issue of late notice. The Court ruled that in a claims-made policy (as opposed to an occurrence policy): (a) notice is a condition precedent to coverage, and not a limitation of coverage; and (b) the notice-prejudice occurrence rule does not apply to “claims made policies.”