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LIBERTY INSURANCE UNDERWRITERS, INC. v. ARCH INSURANCE COMPANY

61 A.D.3d 482 (2009)

877 N.Y.S.2d 44

LIBERTY INSURANCE UNDERWRITERS, INC., Appellant, v. ARCH INSURANCE COMPANY et al., Respondents.

Appellate Division of the Supreme Court of New York, First Department.

Decided April 14, 2009.

"The doctrine of estoppel precludes an insurance company from denying or disclaiming coverage where the proper defending party relied to its detriment on that coverage and was prejudiced by the delay of the insurance company in denying or disclaiming coverage based on the loss of the right to control its own defense" (Merchants Mut. Ins. Group v Travelers Ins. Co., 24 A.D.3d 1179, 1182 [2005] [internal quotation marks and brackets...

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