The Second Department determined the insurer (Global) did not demonstrate it was entitled to disclaim coverage based upon the noncooperation of the insured:
“An insurer who seeks to disclaim coverage on the ground of noncooperation is required to demonstrate that (1) it acted diligently in seeking to bring about the insured’s cooperation, (2) its efforts were reasonably calculated to obtain the insured’s cooperation, and (3) the attitude of the insured, after its cooperation was sought, was one of willful and avowed obstruction” … . “[M]ere efforts by the insurer and mere inaction on the part of the insured, without more, are insufficient to establish non-cooperation as the inference of non-cooperation must be practically compelling'” … .
Here, Global established that it made diligent efforts that were reasonably calculated to obtain the cooperation of BMC and Abduahadov … . However, Global failed to demonstrate that the conduct of BMC and Abduahadov constituted “willful and avowed obstruction” … . Matter of Government Empls. Ins. Co. v Fletcher, 2017 NY Slip Op 01199, 2nd Dept 2-15-17
INSURANCE LAW (INSURER DID NOT DEMONSTRATE REQUIREMENTS FOR DISCLAIMER BASED UPON THE INSURED’S NONCOOPERATION)/DISCLAIMER (INSURANCE LAW, INSURER DID NOT DEMONSTRATE REQUIREMENTS FOR DISCLAIMER BASED UPON THE INSURED’S NONCOOPERATION)/NONCOOPERATION (INSURANCE LAW, DISCLAIMER, INSURER DID NOT DEMONSTRATE REQUIREMENTS FOR DISCLAIMER BASED UPON THE INSURED’S NONCOOPERATION