No Private Right of Action Under Insurance Law When Violation Inadvertent

On December 15, 2015, the First Department issued a decision in Cilente v. Phoenix Life Insurance Co., 2015 NY Slip Op. 09203, holding that there is no private right of action under the Insurance Law for inadvertent violations, explaining:

Although the subject statutes provide a private right of action for an aggrieved person in instances where an insurer or broker knowingly violates any provision of the section or regulations, here, [the defendants] have established that their failure to provide this disclosure was inadvertent and not knowing, and plaintiffs have not raised a triable issue concerning their knowledge of the noncompliance with the statutes.

(Internal quotations and citations omitted) (emphasis added).