N.Y. Insurance Law § 2120: Fiduciary capacity of insurance agents, title insurance agents, insurance brokers and reinsurance intermediaries

§ 2120. Fiduciary capacity of insurance agents, title insurance

agents, insurance brokers and reinsurance intermediaries.

(a) Every insurance agent, title insurance agent, and insurance broker

acting as such in this state shall be responsible in a fiduciary

capacity for all funds received or collected as insurance agent or

insurance broker, and shall not, without the express consent of his, her

or its principal, mingle any such funds with his, her or its own funds

or with funds held by him, her or it in any other capacity.

(b) Every reinsurance intermediary acting as such in this state shall

be responsible, in a fiduciary capacity for all funds received or

collected in such capacity, and shall not, without the express consent

of his or its principal or principals, mingle any such funds with his or

its own funds or with funds held by him or it in any other capacity.

(c) This section shall not require any such insurance agent, title

insurance agent, insurance broker or reinsurance intermediary to

maintain a separate bank deposit for the funds of each such principal,

if and as long as the funds so held for each such principal are

reasonably ascertainable from the books of account and records of such

agent, broker or reinsurance intermediary, as the case may be.

(d) A retail insurance producer who violates paragraph (a) of

subdivision two of section five hundred seventy-seven-a of the banking

law shall be liable for actual damages for the failure to notify, in

writing, the premium finance agency of the information required pursuant

to such paragraph (a).