On September 21, 2022, the Second Department issued a decision in Neurological Surgery, P.C. v. MLMIC Ins. Co., 2022 NY Slip Op. 05211, holding that except in providing a defense, an insurance company does not owe a fiduciary duty to its insureds, explaining:
Generally, an insurance company does not owe its policyholder a common-law fiduciary duty except when it is called upon to defend its insured. Further, a special relationship does not arise out of an ordinary arm’s length business transaction between two parties. Here, the complaint did not allege facts that would give rise to a fiduciary or special relationship between the plaintiffs and MLMIC, as required to support the plaintiffs’ causes of action sounding in breach of fiduciary duty and negligent misrepresentation.
(Internal citations omitted).