N.Y. Banking Law § 570: Restrictions on premium finance agreements

§ 570. Restrictions on premium finance agreements. 1. No premium

finance agreement shall contain any provision by which:

(a) In the absence of default of the insured, the premium finance

agency holding the agreement may, arbitrarily and without reasonable

cause, accelerate the maturity of any part or all of the amount owing

thereunder;

(b) A power of attorney is given to confess judgment in this state; or

(c) The insured relieves the insurance agent or broker or the premium

finance agency holding the agreement from liability for any legal rights

or remedies that the insured may otherwise have against the insurance

agent or broker.

2. No person may use a premium finance agreement in a manner designed

to evade any requirement of article seventy-eight of the insurance law.

3. Every person or premium finance agency that enters into a premium

finance agreement, as such terms are defined pursuant to article

twelve-B of this chapter, shall file in the office of the superintendent

of financial services, on or before the first day of March, a statement,

to be known as its annual statement, verified by the oath of at least

two of its principal officers, showing its condition at the end of the

preceding calendar year. The statement shall be in such form and shall

contain such other matters as the superintendent of financial services

shall prescribe. In addition to any other requirements, the annual

statement shall specify the total number, aggregate face amount and life

settlement proceeds of, policies settled during the immediately

preceding calendar year, together with a breakdown of the information by

policy issue year.