Monday, August 31, 2009

Prejudgment Interest Due To Insured From Date Payment Was Due

In North Point Insurance Company v. Thomas (3D08-2245), the Third District again held that "The general rule is that interest on a loss payable under an insurance policy is recoverable from the date payment is due pursuant to the provisions of that policy." Further, "Once the insurer denies coverage, it is deemed to have waived the policy provision for deferred payment and, should it pay, becomes responsible for prejudgment interest from the date of loss. "[I]f the insurer denies liability, interest begins to run from the date of the loss, even where the policy provides for payment at a later date."


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