Rondiene E. Novitz and Harpreet Kaur Successfully Brought Motion to Dismiss Claims Against their Client; NY State Insurance Agents Have Only a Common-Law Duty to Obtain Coverage and No Continuing Duty to Advise, Guide or Direct Client Once Coverage Obtained

A residential property owner’s policy of insurance was rescinded due to material misrepresentations made on its application for insurance. Shortly thereafter, said premises was involved in a fire. The property owner brought suit against its insurer, the wholesale broker and its insurance broker (our client), arguing in part that its insurance broker breached a purported duty to advise by failing to inform the property owner of the cancellation. Rondiene E. Novitz and Harpreet Kaur brought a motion to dismiss all claims against their client pursuant to CPLR 3211, based on the fact that in New York State insurance agents have only a common-law duty to obtain requested coverage for their clients and they have no continuing duty to advise, guide or direct a client once said coverage is obtained. The court agreed and dismissed the action on its pleadings.

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