From Casetext: Smarter Legal Research

Empire Industrial Corp. v. Insurance Companies of North America

Appellate Division of the Supreme Court of New York, Second Department
Apr 22, 1996
226 A.D.2d 580 (N.Y. App. Div. 1996)

Summary

determining that a request for the "'best' available coverage" was not a specific request

Summary of this case from Lab, LLC v. Travelers Prop. Cas. Co.

Opinion

April 22, 1996

Appeal from the Supreme Court, Suffolk County (D'Emilio, J.).


Ordered that the order is affirmed insofar as appealed from, with costs.

Contrary to the plaintiffs' contention, the Supreme Court properly concluded that the defendant insurance broker had no duty to advise them of the availability of underinsured motorist coverage, or to obtain such coverage on their behalf. Under New York law, the duty owed by an insurance agent to an insurance customer is ordinarily defined by the nature of the request a customer makes to the agent ( see, Barco Auto Leasing Corp. v Montano, 215 A.D.2d 617; Wied v. New York Cent. Mut. Fire Ins. Co., 208 A.D.2d 1132). Thus, absent a specific request for coverage not already provided in a client's insurance policy, neither an insurance company nor its agent has a common-law duty to advise a client to procure additional coverage ( see, Chaim v Benedict, 216 A.D.2d 347; Hjemdahl-Monsen v. Faulkner, 204 A.D.2d 516, 517). At bar, the plaintiffs assert that they asked the defendant to obtain the "best" available insurance coverage. However, since it is undisputed that the plaintiffs never requested underinsurance coverage, the defendant had no duty to recommend or procure that coverage ( see, e.g., Chaim v. Benedict, supra; Wied v. New York Cent. Mut. Fire Ins. Co., supra; Erwig v Cook Agency, 173 A.D.2d 439). Balletta, J.P., Thompson, Santucci and Florio, JJ., concur.


Summaries of

Empire Industrial Corp. v. Insurance Companies of North America

Appellate Division of the Supreme Court of New York, Second Department
Apr 22, 1996
226 A.D.2d 580 (N.Y. App. Div. 1996)

determining that a request for the "'best' available coverage" was not a specific request

Summary of this case from Lab, LLC v. Travelers Prop. Cas. Co.
Case details for

Empire Industrial Corp. v. Insurance Companies of North America

Case Details

Full title:EMPIRE INDUSTRIAL CORP. et al., Appellants, v. INSURANCE COMPANIES OF…

Court:Appellate Division of the Supreme Court of New York, Second Department

Date published: Apr 22, 1996

Citations

226 A.D.2d 580 (N.Y. App. Div. 1996)
641 N.Y.S.2d 345

Citing Cases

Philadelphia Indem. v. Horowitz, Greener Stengel

The second cause of action asserted by the defendants/third-party plaintiffs is also unsupported by New York…

Tetelbaum v. Traveler's Cos., Inc.

rt a separate claim for breach of the duty of good faith and fair dealing, because the conduct underlying…