Licensed insurance producers in New York often subject themselves to unnecessary disciplinary action by the State of New York Department of Financial Services (“DFS”). Of course there are serious issues with misappropriating premium funds and other untrustworthy or egregious conduct, but the tips below address more routine and procedural issues, which, if complied with, can […]
The Insurance Law permits an insurance broker or insurance agent to pay unlicensed individuals or entities for referrals. That is, where there is no discussion of insurance policy terms and the compensation is not based upon the sale of insurance. Under limited circumstances briefly explained here, a licensee may even compensate a nonlicensee based upon […]
Section 2110(j) of the New York Insurance Laws, which became effective in 2004, requires an insurance producer to report any criminal prosecution of the licensee in any jurisdiction, “within thirty days of the initial pretrial hearing date.” Although enacted 6 years ago, Section 2210(j) is the subject of numerous disciplinary actions in the Department’s most […]
New York State Insurance Laws prohibit rebating and inducements in the sale of insurance. But when, and under what circumstances, can a licensed agent or broker donate a portion of commissions to charity? By way of background, Sections 2324 and 4224 of the Insurance Laws prohibit licensees from directly or indirectly paying, allowing or giving […]
The Department recently issued two Office of General Counsel Opinions related to unapproved deviations from policy forms. Most recently, on January 31, 2011, in OGC Op. No. 11-01-08, the Department opined that an insurance agent or broker may not complete a certificate of insurance that purports to amend, expand, or otherwise alter the terms of […]
The Insurance Department continues to address inquiries regarding the parameters and application of Regulation 194. In OGC Op. No. 10-11-01, the Department opined that a producer that is a business entity, such as a corporation or partnership, is the producer “selling an insurance contract” for purposes of § 30.3(a) of Regulation 194, even though the […]
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