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MATTER OF STATE FARM MUT. AUTO. INS. CO.

201 A.D.2d 980 (1994)

607 N.Y.S.2d 838

In the Matter of the Arbitration between State Farm Mutual Automobile Insurance Company, Appellant-Respondent, and Encarnacion Sanchez, Respondent-Appellant

Appellate Division of the Supreme Court of the State of New York, Fourth Department.

February 4, 1994

Order unanimously reversed on the law without costs and petition granted.

Memorandum:

Supreme Court erred in denying petitioner's application pursuant to CPLR 7503 to stay arbitration of respondent's underinsured motorist claim. Respondent's demand for arbitration was premature. Insurance Law § 3420 (f) (2) states that, "[a]s a condition precedent to the obligation of the insurer to pay under the supplementary...

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