Notice-Prejudice Rule Law and Legal Definition
Notice prejudice rule is a principle of insurance law that bars an insurer from using late notice as a reason to deny an insured's claim unless the insurer can show that the insurer was prejudiced by the untimely notice. Prejudice is not presumed from delayed notice alone. The insurer must show actual prejudice, not the mere possibility of prejudice.
The following is an example of a caselaw defining the rule:
The Louisiana notice-prejudice rule provides that "where the requirement of timely notice is not an express condition precedent, the insurer must demonstrate that it was sufficiently prejudiced by the insured's late notice."[Moufarrej v. UNUM Provident Corp., 100 Fed. Appx. 284, 288 (5th Cir. La. 2004)]