Risk Retention Group's Alleged Violation of State Law Wasn't Unfair Claim Settlement Practice

In a case of first impression, a New York appellate court ruled that a risk retention group's failure to comply with a state law requiring timely notice of a denial of coverage did not mean that it engaged in an unfair claim settlement procedure. The issue arose in a case called Nadkos Inc. v. Preferred Contractors Insurance Co. Risk Retention Group after a construction worker’s injury at a property in Brooklyn. The property owner had hired Nadkos to serve as the general contractor for a construction project. Nadkos subcontracted the steelwork for the project to Chesakl Enterprises...