Templo Fuente De Vida Corp. and Fuente Properties, Inc., Plaintiffs-Appellants v. National Union Fire Insurance…

Summary

The New Jersey Supreme Court held that an insurer need not demonstrate appreciable prejudice before disclaiming coverage under a Directors and Officers "claims made" policy where a sophisticated, broker-represented insured breached the policy's clear condition precedent to report a claim both within the policy period and "as soon as practicable"; the adhesion-contract prejudice doctrine applicable to occurrence policies sold to consumers does not reach such negotiated policies. The Court also held, expressly without drawing a bright line, that the insured's unexplained six-month delay in reporting the claim failed the "as soon as practicable" requirement on this record. Reviewing the summary-judgment disposition de novo, the Court affirmed the denial of coverage to the plaintiffs as assignees of the insured's policy rights.