June 17, 2009 

Written By Attorneys: Claudia D. McCarron and Paulyne A. Gardner-Smith

Note: This article is an interpretation of current law and is offered for informational purposes only. This material is not legal advice and should not be construed or used as a substitute for the advice of an attorney.

On April 29, 2009, the Pennsylvania Supreme Court issued a per curiam Order affirming the decision of the Pennsylvania Superior Court in Ace American Insurance Company v. Underwriters at Lloyds and Companies, 939 A.2d 935 (Pa. Super. 2007), which held that insurers need not demonstrate prejudice when denying coverage under a "claims made" policy based upon late notice. After hearing argument on April 14, 2009, the Pennsylvania Supreme Court summarily affirmed the Superior Court's decision in a one sentence Order. Thus, as the law now stands, carriers may deny coverage without proving prejudice arising from late notice if the policy in issue is a claims-made policy as opposed to an occurrence policy.