Travelers Property Casualty Company of America, a Connecticut Company v. Stresscon Corporation, a Colorado Corporation

Summary

The court held that the notice-prejudice rule applicable to untimely notice under an occurrence-based liability policy does not extend to a no-voluntary-payments clause. Because that clause defines the scope of coverage and excludes payments or obligations voluntarily incurred without the insurer's consent, the insurer need not show prejudice to deny indemnification for such payments. The court reversed and remanded for consideration of other preserved grounds for the directed-verdict motion. Justice Marquez, dissenting and joined by Justices Hood and Gabriel, would have applied a rebuttable presumption of prejudice rather than treating the clause as an absolute bar.