New York Governor David Paterson has signed into law a bill that prevents insurers from denying claims for injury or property damage based on late notice by the claimant unless the insurer can show that it was prejudiced by the late notice.

Gov. Paterson had requested the introduction of the bill, and it was sponsored by John DeFransisco, R-Syracuse, in the Senate and Helene Weinstein, D-Brooklyn, in the Assembly.

New York insurance agents had supported the measure, while some insurance company associations said it was unnecessary but not unexpected.

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