N.Y. Insurance Law § 2112: Certificate of appointment of an insurance producer to act as an agent and notice of termination of an insurance producer

§ 2112. Certificate of appointment of an insurance producer to act as

an agent and notice of termination of an insurance producer. (a) Every

insurer, fraternal benefit society or health maintenance organization

doing business in this state shall file a certificate of appointment in

such form as the superintendent may prescribe in order to appoint

insurance agents or, in the case of a title insurance corporation, title

insurance agents, to represent such insurer, fraternal benefit society

or health maintenance organization.

(b) To appoint a producer, the appointing insurer shall file, in a

format approved by the superintendent, a notice of appointment within

fifteen days from the date the agency contract is executed or the first

insurance application is submitted.

(c) Certificates of appointment shall be valid until (1) terminated by

the appointing insurer or title insurance agent after a termination in

accordance with the provisions of the agency contract; (2) the license

is suspended or revoked by the superintendent; or (3) the license

expires and is not renewed.

(d) Every insurer, fraternal benefit society or health maintenance

organization or insurance producer or the authorized representative of

the insurer, fraternal benefit society, health maintenance organization

or insurance producer doing business in this state shall, upon

termination of the certificate of appointment as set forth in subsection

(a) of this section of any insurance agent, or title insurance agent

licensed in this state, or upon termination for cause for activities as

set forth in subsection (a) of section two thousand one hundred ten of

this article, of the certificate of appointment, of employment, of a

contract or other insurance business relationship with any insurance

producer, file with the superintendent within thirty days a statement,

in such form as the superintendent may prescribe, of the facts relative

to such termination for cause. The insurer, fraternal benefit society,

health maintenance organization, insurance producer or the authorized

representative of the insurer, fraternal benefit society, health

maintenance organization or insurance producer shall provide, within

fifteen days after notification has been sent to the superintendent, a

copy of the statement filed with the superintendent to the insurance

producer at his, or her or its last known address by certified mail,

return receipt requested, postage prepaid or by overnight delivery using

a nationally recognized carrier. Every statement made pursuant to this

subsection shall be deemed a privileged communication.

(e) The insurer, fraternal benefit society, health maintenance

organization, insurance producer or the authorized representative of the

insurer, fraternal benefit society, health maintenance organization or

insurance producer shall promptly notify the superintendent in a format

acceptable to the superintendent if, upon further review or

investigation, the insurer, fraternal benefit society, health

maintenance organization or insurance producer or the authorized

representative of the insurer, fraternal benefit society, health

maintenance organization or insurance producer discovers additional

information that would have been reportable to the superintendent had

the insurer then known of its existence. Every statement made pursuant

to this subsection shall be deemed a privileged communication.

(f)(1) Within fifteen days after making the notification required by

subsection (e) of this section the insurer, fraternal benefit society,

health maintenance organization or insurance producer or the authorized

representative of the insurer, fraternal benefit society, health

maintenance organization or insurance producer shall mail a copy of the

notification to the insurance producer at his, her or its last known

address by certified mail, return receipt requested, postage prepaid or

by overnight delivery using a nationally recognized carrier.

(2) Within thirty days after the insurance producer has received the

original or additional notification, the insurance producer may file

written comments concerning the substance of the notification with the

superintendent. The insurance producer shall, by the same means,

simultaneously send a copy of the comments to the reporting insurer,

fraternal benefit society, health maintenance organization or insurance

producer or the authorized representative of the insurer, fraternal

benefit society, health maintenance organization or insurance producer

and the comments shall become a part of the superintendent's file and

accompany every copy of a report distributed or disclosed for any reason

about the insurance producer as permitted by section one hundred ten of

this chapter.

(g)(1) In the absence of fraud, bad faith or gross negligence, an

insurer, fraternal benefit society or health maintenance organization,

or the authorized representative of the insurer, fraternal benefit

society or health maintenance organization, an insurance producer, the

superintendent, or an organization of which the superintendent is a

member and that compiles the information and makes it available to other

insurance superintendents or commissioners or regulatory or law

enforcement agencies shall not be subject to civil liability, and a

civil cause of action of any nature shall not arise against these

entities or their respective agents or employees as a result of any

statement or information required by or provided pursuant to this

section or any information relating to any statement that may be

requested in writing by the superintendent, from an insurer, fraternal

benefit society or health maintenance organization or the authorized

representative of the insurer, or insurance producer, or a statement by

a terminating insurer, fraternal benefit society or health maintenance

organization or the authorized representative of the insurer, fraternal

benefit society or health maintenance organization, or insurance

producer to an insurer, fraternal benefit society or health maintenance

organization or the authorized representative of the insurer, fraternal

benefit society or health maintenance organization, or insurance

producer, limited solely and exclusively to whether a termination for

cause was reported to the superintendent, provided that the propriety of

any termination for cause is certified in writing by an officer or

authorized representative of the insurer, fraternal benefit society or

health maintenance organization or the authorized representative of the

insurer, fraternal benefit society or health maintenance organization or

insurance producer terminating the relationship.

(2) In any action brought against a person that may have immunity

under paragraph one of this subsection for making any statement required

by this section or providing any information relating to any statement

that may be requested by the superintendent, the party bringing the

action shall plead specifically in any allegation that paragraph one of

this subsection does not apply because the person making the statement

or providing the information did so fraudulently, in bad faith or

through gross negligence.

(3) Paragraphs one and two of this subsection shall not abrogate or

modify any existing statutory or common law privileges or immunities.

(h) (1) Any documents, materials or other information in the control

or possession of the superintendent that is furnished by an insurer,

fraternal benefit society or health maintenance organization, the

authorized representative of the insurer, fraternal benefit society or

health maintenance organization, or insurance producer, or an employee

or agent thereof acting on behalf of the insurer, fraternal benefit

society or health maintenance organization, authorized representative of

the insurer, fraternal benefit society or health maintenance

organization or insurance producer relating to the termination of an

insurance producer pursuant to this section or obtained by the

superintendent in an investigation pursuant to this section shall be

confidential by law and privileged, shall not be subject to freedom of

information requests, shall not be subject to subpoena, and shall not be

subject to discovery or admissible in evidence in any private civil

action. However, the superintendent is authorized to use the documents,

materials or other information in furtherance of any regulatory or legal

action brought as a part of the superintendent's duties. Further, this

paragraph shall not apply to any documents, materials or other

information in the control or possession of any person or entity other

than the superintendent or the department, regardless of whether or not

such documents, materials or other information are identical or similar

to documents, materials or other information in the superintendent's

control or possession to which the confidentiality restrictions of this

paragraph apply.

(2) Neither the superintendent nor any person who received documents,

materials or other information while acting under the authority of the

superintendent shall be permitted or required to testify in any private

civil action concerning any confidential documents, materials, or

information subject to the provisions of paragraph one of this

subsection.

(3) Nothing in this article shall prohibit the superintendent from

releasing final, adjudicated actions including for cause terminations

that are open to public inspection pursuant to article six of the public

officers law to a data base or other clearinghouse service maintained by

the National Association of Insurance Commissioners, its affiliates or

subsidiaries.

(i) An insurer, fraternal benefit society or health maintenance

organization, authorized representative of an insurer, fraternal benefit

society or health maintenance organization or an insurance producer that

fails to report as required under the provisions of this section or that

is found to have reported fraudulently, in bad faith or through gross

negligence by a court of competent jurisdiction may, after notice and

hearing, have its license or certificate of authority suspended or

revoked and may be fined in accordance with the provisions of this

chapter, provided, however, that an insurer may be fined up to five

thousand dollars. In the case of a domestic insurer, the provisions of

article seventy-four of this chapter shall all also apply.