N.Y. Insurance Law § 4215: Contracts with industrial life insurance agents; prohibitions

§ 4215. Contracts with industrial life insurance agents; prohibitions.

(a) No life insurance company licensed to do business in this state

shall make any contract with any agent, superintendent or other

representative employed in this state which provides:

(1) That the company shall charge against the past, present or future

compensation of the agent, superintendent or other representative,

either salary or commission, any sum of money as a result of the

surrender for cash of any industrial policy by any policyholder;

(2) That the company shall charge against the past, present or future

compensation of the agent, superintendent or other representative,

either salary or commission, any sum of money as a result of the lapse

of any industrial policy that has been in force for three years or

longer.

(b) The provisions of subsection (a) hereof shall not prohibit the

company from contracting with its agents, superintendents or other

representatives, to charge any agent, superintendent or other

representative, a sum not exceeding the commission on any policy written

by the agent, superintendent or other representative on the life of any

person, or any relative sharing the home with the person, who has

terminated a policy of the company not more than three months before or

who terminates such a policy within three months after the policy was

written.