N.Y. Banking Law § 566: Insurance agents and brokers; acquisition by premium finance agencies of premium finance agreements

§ 566. Insurance agents and brokers; acquisition by premium finance

agencies of premium finance agreements. 1. An insurance agent or broker

may be licensed as a premium finance agency in accordance with this

article.

2. Notwithstanding any contrary provisions of the personal property

law, banking law or other law:

(a) No premium finance agency, and no employee of such an agency shall

pay, allow or offer to pay or allow in any manner whatsoever to an

insurance agent or broker or any employee of an insurance agent or

broker, or to any other person, either as an inducement to the financing

of any insurance policy with the premium finance agency or after any

such policy has been financed, any rebate whatsoever, either from the

service charge for financing specified in the premium finance agreement

or otherwise, or shall give or offer to give any valuable consideration

or inducement of any kind directly or indirectly, other than an article

of merchandise not exceeding one dollar in value which shall have

thereon the advertisement of the premium finance agency, but a premium

finance agency may purchase or otherwise acquire a premium finance

agreement, provided that it conforms to this article in all respects,

from an insurance agent or broker or another premium finance agency with

recourse against the agent, broker or agency on such terms and

conditions as may be mutually agreed upon; and

(b) No filing of the assignment or notice thereof to the insured shall

be necessary to the validity of the written assignment of a premium

finance agreement as against creditors or subsequent purchasers,

pledgees or encumbrances of the assignor.