Key Takeaway
Court rules State Farm's 15-day delay in sending disclaimer letters after completing investigation was unreasonable, resulting in waived coverage defenses.
This article is part of our ongoing preservation of defenses on nf-10 coverage, with 208 published articles analyzing preservation of defenses on nf-10 issues across New York State. Attorney Jason Tenenbaum brings 24+ years of hands-on experience to this analysis, drawing from his work on more than 1,000 appeals, over 100,000 no-fault cases, and recovery of over $100 million for clients throughout Nassau County, Suffolk County, Queens, Brooklyn, Manhattan, and the Bronx. For personalized legal advice about how these principles apply to your specific situation, contact our Long Island office at (516) 750-0595 for a free consultation.
Matter of Matter of AIU Ins. Co. v Veras, 2012 NY Slip Op 03116 (1st Dept. 2012)
“On June 4, 2005, respondent Veras and additional respondent Richard, who was driving a vehicle owned by additional respondent Wynder-Ortiz and insured by State Farm, were involved in an automobile accident. State Farm was not notified and did not learn of the accident from its insured. Nearly four years later, it learned of the accident from Veras, who served it with the judgment entered in his favor in the action he had commenced against Richard and Wynder-Ortiz. Although it completed its internal investigation and prepared letters of disclaimer within two weeks, State Farm waited another 15 days before sending out the letters. It was not error for the court to find this largely unexplained delay unreasonable (see Insurance Law § 3420; First Fin. Ins. Co. v Jetco Contr. Corp., 1 NY3d 64, 66 ; Travelers Ins. Co. v Volmar Constr. Co., 300 AD2d 40, 42-43 ; see also George Campbell Painting v National Union Fire Ins. Co. of Pittsburgh, PA, 92 AD3d 104 ).”
So, notice of the accident is received after 4 years. A judgment is entered and served upon State Farm. Then, a decision is made to deny within 2 weeks. Then 15 days were not explained. After this, a disclaimer was sent, and this was insufficient?
“We reject State Farm’s argument that the delay was due to its investigation of other possible grounds for disclaiming. State Farm’s witness testified that the investigation was completed in two weeks. In any event, however, “just as we would not permit the insured to delay giving the insurer notice of claim while investigating other possible sources of coverage, we should not permit the insurer to delay issuing a disclaimer on a known ground while investigating other possible grounds for avoiding liability” (George Campbell Painting, 92 AD3d at 115).”
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Legal Update (February 2026): Since this 2012 decision, Insurance Law § 3420 disclaimer requirements and the standards for “reasonable time” determinations may have been subject to regulatory amendments or evolving case law interpretations. Practitioners should verify current provisions regarding notice timelines, investigation periods, and waiver standards, as courts may have refined the analysis of what constitutes reasonable delay in disclaimer situations.
Legal Context
Why This Matters for Your Case
New York law is among the most complex and nuanced in the country, with distinct procedural rules, substantive doctrines, and court systems that differ significantly from other jurisdictions. The Civil Practice Law and Rules (CPLR) governs every stage of civil litigation, from service of process through trial and appeal. The Appellate Division, Appellate Term, and Court of Appeals create a rich and ever-evolving body of case law that practitioners must follow.
Attorney Jason Tenenbaum has practiced across these areas for over 24 years, writing more than 1,000 appellate briefs and publishing over 2,353 legal articles that attorneys and clients rely on for guidance. The analysis in this article reflects real courtroom experience — from motion practice in Civil Court and Supreme Court to oral arguments before the Appellate Division — and a deep understanding of how New York courts actually apply the law in practice.
About This Topic
Preservation of Defenses on the NF-10 Denial Form
The NF-10 denial of claim form is the insurer's primary vehicle for asserting defenses to a no-fault claim. Under New York regulations, defenses not raised on the NF-10 within the prescribed time period may be deemed waived. The specificity of the denial, the timeliness of its issuance, and the consequences of failing to properly preserve defenses on the NF-10 are heavily litigated issues. These articles analyze the regulatory requirements and court decisions governing defense preservation on no-fault denial forms.
208 published articles in Preservation of defenses on NF-10
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Disclaimer: This article is published by the Law Office of Jason Tenenbaum, P.C. for informational and educational purposes only. It does not constitute legal advice, and no attorney-client relationship is formed by reading this content. The legal principles discussed may not apply to your specific situation, and the law may have changed since this article was last updated.
New York law varies by jurisdiction — court decisions in one Appellate Division department may not be followed in another, and local court rules in Nassau County Supreme Court differ from those in Suffolk County Supreme Court, Kings County Civil Court, or Queens County Supreme Court. The Appellate Division, Second Department (which covers Long Island, Brooklyn, Queens, and Staten Island) and the Appellate Term (which hears appeals from lower courts) each have distinct procedural requirements and precedents that affect litigation strategy.
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