New York Governor Eliot Spitzer vetoed a bill that would allow a plaintiff in a civil trial to seek a declaratory judgment from the court to determine coverage owed by an insurer before a verdict is reached against the defendant.

The bill (S-6306/A-8362), opposed by the insurance industry, would have also forbid an insurer from denying a claim based on late notice, unless the insurer could show “material prejudice” because of the delay in notice.

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