Direct Auto Insurance Co. v. O’Neal

Insurance coverage dispute arising out of automobile collision. The insured sought to pursue a claim under an uninsured motorist policy, but sent the notice of claim to an old address for the insurance company. As a result, the insurance company did not receive actual notice of the claim until 23 months after the collision. The insurance company filed a declaratory judgment action arguing that it did not owe the insured coverage as a result of the late notice. The trial court held that the insurance company did not suffer any prejudice as a result of the delay and entered judgment in favor of the insured. The insurance company appealed and the appellate court affirmed, finding that the insurance company could not prove prejudice where it failed to investigate the collision after receiving actual notice of the claim. (McBRIDE and REYES, concurring)