N.Y. Insurance Law § 6504: Required approvals; prohibitions

§ 6504. Required approvals; prohibitions. (a) Every mortgage insurer

shall file with the superintendent for his approval in accordance with

article twenty-three of this chapter its premium rates, forms of

policies, certificates, applications and other forms pertaining to

mortgage guaranty insurance. The premium rate charged for mortgage

guaranty insurance shall not be deemed to be interest for the purposes

of section 5-501 of the general obligations law.

(b) No mortgage insurer shall pay:

(1) to any person who is acting as agent, representative, attorney or

employee of the owner, mortgagee of the prospective owner, or mortgagee

of the real property or any interest therein, either directly or

indirectly, any consideration as an inducement for or as compensation on

any mortgage guaranty insurance business; or

(2) any compensation to any person for transacting insurance for or

with it based in whole or in part upon a commission basis unless such

person is licensed pursuant to this chapter.

(c) In connection with the placement or renewal of any insurance, a

mortgage insurer shall not permit any compensation to be paid to, or

received by: any insured lender; any officer, director, or employee of

the insured; any member of their immediate family; any corporation,

partnership, trust, or trade association in which an insured is a

member; or other entity in which an insured or any such officer,

director, or employee or any member of their immediate family has a

financial interest; or any designee, trustee, nominee, or other agent or

representative of any of the foregoing.

(d) The superintendent may, after a hearing, suspend or revoke the

license of any mortgage insurer which, after ten days written notice

from the superintendent requiring it to cease and desist, continues to

pay any consideration in willful violation of this article.