To read the full article please Subscribe to "Excellence in Claims Handling" at https://barryzalma.substack.com/welcome.

When used in contract law, the word condition refers to an event, the occurrence or non-concurrence of which alters the previously existing relations of the parties by creating or extinguishing a legal duty.[1] A condition is different from a promise or warranty. When used in an insurance policy the condition imposes duties on the insured (the promisor) and gives a corresponding right to the insurer (the promisee). Breach of a condition gives the insurer legal justification for refusing to perform its obligations under the policy.

There are two types of conditions:

· conditions precedent; and

· conditions subsequent.

A condition precedent, as known in the law, is one which is to be performed before the agreement of the parties becomes operative. A condition precedent calls for the performance of some act or the happening of some event after the contract is entered into, and upon the performance or happening of which its obligation is made to depend. [Lake Co. v. Molan, 269 Minn. 490, 498-99, 131 N.W.2d 734, 740 (1964) (quoting Chambers v. Northwestern Mutual Life Insurance Co., 64 Minn. 495, 497, 67 N.W. 367, 368 (1896)).

The violation of a condition precedent precludes recovery. [Gordon v. St. Paul Fire & Marine Ins. Co., 163 N.W. 956, 957 (Mich. 1917); Yeo v. State Farm Ins. Co., 555 N.W.2d 893, 895 (Mich. Ct. App. 1996).” Durasevic v. Grange Ins. Co. of Mich. (6th Cir., 2019)]

Failure to appear for a properly noticed Examination Under Oath (EUO) constitutes a breach of a condition precedent, vitiating coverage under the no-fault policy if timely and properly requested (Ace Am. Ins. Co. v. Dr. Watson Chiropractic, P.C., 2018 NY Slip Op 30867[U] [Sup Ct, NY County 2018]. Country-Wide Ins. Co. v. St. Michelle, 2019 NY Slip Op 31923(U) (N.Y. Sup. Ct., 2019)]

Subscribe to "Excellence in Claims Handling" at https://barryzalma.substack.com/welcome.