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Failing To Satisfy Condition Precedent Precludes Direct Action Against Insurer

February 27, 2008

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In Guayara v. Hudson Insurance Company, plaintiff sought to enforce an unsatisfied judgment against the defendant's insured. The Appellate Division, Second Department dismissed the case since plaintiff failed to follow Insurance Law § 3420(a) (2) that allows a direct action against an insurer only thirty-one (31) days after a claimant serves notice of entry of judgment upon the attorney for the insured, or upon the insured and its insurer. In this case, plaintiff merely sent a letter to the broker of the insured, which did not comply with the statutory requirements.
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