N.Y. Insurance Law § 2114: Life, accident and health insurance agents; commissions

§ 2114. Life, accident and health insurance agents; commissions. (a)

(1) No insurer or fraternal benefit society doing business in this state

shall pay any commission or other compensation to any person, firm or

corporation, for any services in obtaining in this state any new

contract of life insurance or any new annuity contract, except to a

licensed life insurance agent of such insurer or of such society or to

an insurance broker licensed under subparagraph (A) of paragraph one of

subsection (b) of section two thousand one hundred four of this article,

and except to a person described in paragraph two or three of subsection

(a) of section two thousand one hundred one of this article.

(2) No agent or other representative of any such life insurer or

fraternal benefit society shall pay any commission or other compensation

to any person for any services of the kind specified in paragraph one

hereof, except to a licensed life insurance agent of such insurer or of

such society as the case may be.

(3) No insurer, fraternal benefit society or health maintenance

organization doing business in this state and no agent or other

representative thereof shall pay any commission or other compensation to

any person, firm, association or corporation for services in soliciting,

negotiating or selling in this state any new contract of accident or

health insurance or any new health maintenance organization contract,

except to a licensed accident and health insurance agent of such

insurer, such society or health maintenance organization, or to a

licensed insurance broker of this state, and except to a person

described in paragraph two or three of subsection (a) of section two

thousand one hundred one of this article.

* (4) Services of the kind specified in this subsection shall not

include the referral of a person to a licensed insurance agent or broker

that does not include a discussion of specific insurance policy terms

and conditions and where the compensation for referral is not based upon

the purchase of insurance by such person.

* NB Repealed September 10, 2029

(b) If any licensed life insurance agent who or which has received an

application for a life insurance or annuity contract is unable after

reasonable diligence to obtain all or any part of such insurance from

the life insurer or insurers which he or it is licensed to represent,

such agent may solicit, negotiate or sell such insurance, to the extent

to which it is declined by such insurer or insurers, from any other

authorized life insurer or insurers, with the consent of the person

making such application; but no such agent shall receive any commission

or other compensation for his services in connection therewith from any

insurer unless he is licensed as agent of such insurer at the time when

he receives such compensation.