N.Y. Insurance Law § 4523: Soliciting membership in unauthorized societies; penalties

§ 4523. Soliciting membership in unauthorized societies; penalties.

(a) Any person, firm, association or corporation who or which shall

solicit a member or members for, or in any way assist in procuring a

member or members for, or collect payments or dues for or in connection

with the membership of, any fraternal benefit society that is not

licensed to do business in this state and that is not exempted under the

provisions of section four thousand five hundred twenty-two of this

article shall be guilty of a misdemeanor, and in addition, such person,

firm, association or corporation shall be liable to a penalty of one

hundred dollars for each person so solicited or so procured to become a

member in such unauthorized society, and may in addition to either of

the foregoing, be enjoined from doing any such unlawful acts, in the

manner specified in section three hundred nine of the financial services

law.

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

conduct of a designated representative acting under the authority of an

unlicensed fraternal benefit society which was heretofore licensed to do

business in this state and has obtained a certificate from the

superintendent authorizing designated representatives to act for such

society in the collection of payments or dues from members or perform

any act incident to existing membership but not to solicit members or

assist in procuring members. The application for such certificate shall

be on such form or forms and supplements thereto, and shall contain such

information, as the superintendent may prescribe. There shall be

attached to such forms a statement by such society stating that such

society has satisfied itself that the proposed designated representative

is trustworthy and competent to act as such designated representative

and that the society will appoint him to act as its designated

representative. Such statement shall be subscribed by an officer of such

society and affirmed by such officer as true under the penalties of

perjury. The superintendent may revoke the superintendent's

authorization of any designated representative after notice and hearing

and on the grounds enumerated in subsection (a) of section two thousand

one hundred ten of this chapter.