Mary LaVeck of Acadia Insurance Talks About New York State Late Notice Law §3420

Mary has been a P&C insurance claims professional for over 25 years, beginning her career as a field adjuster at Commercial Union Insurance in Albany. She has held various adjusting and supervisory positions over the years, and joined Acadia Insurance, a northeast regional commercial lines carrier, in 2007. Mary is the NY Casualty Claim Director and is based in the Syracuse office. She is the proud mother of a college senior at SUNY Fredonia, and a huge Boston Red Sox fan.

Q: This new law comes with no guideline for the definition of "material impairment". What new record keeping procedures or documentation are you enacting to best protect your interests? How are they different than before?

A: We're still in the talking stages to deal with that. We're discussing potential new procedures and documentation with senior management. The concern is that witnesses might begin disappearing if we leave it up to the courts. The prediction is that we'll come up on the short end.

Q: Do you think there will be battles over what constitutes "material impairment" in the defense of a claim?

A: Yes, absolutely.

Q: The new provisions will only apply to policies issued or delivered after January 17, 2009. Is there a silver lining here?

A: That's a loaded question. It gives us time to prepare. It's good that we have time to handle our current claims the same way. The only silver lining I can see is that at least we have time to prepare. It will really depend on how quickly we have to jump on cases.

Q: How will the changes effect how you handle claims from those newly insured after Jan. 17?

A:  What will change is how we approach fraud. Policy holders now have 2 years to submit. That will make it much more difficult to disprove. Someone can say, they slipped and fell in 2008 and they don't report it until 2010. The burden of proof will be difficult. We will focus more on special investigations and fraud investigations.

Q: Do you think the new law removes incentives for policyholders to provide prompt notice?

A: Yes Absolutely.

Q: So what are you doing form a customer service position to encourage policy holders or other claimants that it is in their best interest to get you timely notice? Anything different?

A: We've made it clear to them that if we are to be successful in defending their claims, we need to know everything as early as possible. It could result in a large settlement  which would affect their premiums and ability to even get coverage in the future.

Q: How have you handled amending your guidelines and procedures for disclaiming based on late notice?

A: Everyone has received a copy of the new law. Our intent is to discuss every late notice claim with corporate office and to follow all guidelines to the letter.

Q: Looking into your crystal ball, do you think that New York Courts are fully prepared to embrace the late notice law?

A: I think it depends on the court. Some venues will be more liberal and some judges will be more liberal. I don't think they realize how many cases will be before them.

Q: I was thinking of ending on lighter fare... What are your plans for the holidays?