In Ponok Realty Corp v. United National Specialty Insurance Co, 2010 NY Slip op 00124 (2nd Dept 2010), the court rejected the insured’s argument that the insurer was obligated to demonstrate prejudice in order to disclaim based upon its insured’s late notice of the incident, noting that the amendment to Insurance Law 3420 requiring such a showing was not applicable, as the policy was not issued on or after January 17, 2009, as set forth in the 2008 amendment to the law.

The court also discussed well-established law governing an insured’s obligation to comply with the notice provisions of a policy, rejecting the insured’s contention that notice was given as soon as practicable and finding that the insured’s purported good faith belief of nonliability was unreasonable, even construing all inferences in favor of the insured. The insured knew of a property damage claim by its tenant for more than a year prior to the time notice was given to the insurer. The matter was remitted to the trial court for entry of a judgment declaring the insurer had no obligation to defend or indemnify its insured in the underlying action.