Court addresses penalty interest and proof of loss issues

In Frans v. Harleysville, the Court of Appeals addressed a number of procedural issues pertinent to statutory fire policies.  Among other principles, it noted that where an insurer merely rejects a proof of loss but does not identify the deficiencies, it is held to have waived the proof of loss requirement.  The court also noted that 12 percent interest is due whenever payment is late, regardless of whether it was "unreasonably delayed".  The court refused the insured's arguments suggesting that the insurer had waived certain policy language addressing policy limits and surrender of debris.  It also refused to award the Plaintiff pre-filing interest on the parties' arbitration award.