In its brief, UP argues that an insurance company must establish that the events leading to the outcome of an underlying case actually prejudiced the insurance company in a manner that would not have happened had the insurance company received timely notice of the claim.
UP argues that:
1. Louisiana law requires proof of actual prejudice to avoid policyholder forfeiture and insurance company windfall;
2. The modern view of insurance requires proof of prejudice before insurers may avoid coverage on the grounds of late notice;
3. Legal and insurance coverage authorities across jurisdictions agree that this modern view requires that insurance companies prove actual prejudice, not theoretical prejudice; and
4. Louisiana law strongly disfavors forfeiture of insurance coverage.