Insured Not Entitled to Coverage for Arbitration Proceedings, Court Affirms
November 17, 2010
- Summary Order
NEW YORK - An insurer is not obligated to provide an investment company with coverage for underlying arbitration proceedings because the insured failed to provide timely notice of the claims against it, the 2nd Circuit U.S. Court of Appeals has affirmed. Quanta Specialty Lines Insurance Co. v. Investors Capital Corp., No. 10-0219 (2nd Cir.).
In a Nov. 16 summary order, the appellate court further ruled that it lacks jurisdiction over the insured's appeal of the denial of its motion to add an affirmative defense to its answer. The order denying the motion was never mentioned in the insured's notice of …