Opinion ID: 1434255
Heading Depth: 2
Heading Rank: 3

Heading: burden of demonstrating prejudice

Text: Jurisdictions which have treated prejudice as the material factor still disagree as to who has the burden of proving existence or lack of prejudice. Some jurisdictions require the insured to prove that the untimely notice did not prejudice the company [2] while others place the burden of demonstrating prejudice on the insurer. [3] We conclude the burden should be on the insurer. Information regarding prejudice is generally more readily available to the insurer than the insured. The insurer is in a better position to demonstrate that its ability to investigate, defend or settle a claim has been impaired. We hold that in a case of untimely notice to an insurer, the insurer must prove that it has actually been prejudiced by the delay before its liability is extinguished.