N.Y. Insurance Law § 9109: Refunds and penalties

§ 9109. Refunds and penalties. (a) (1) Whenever the superintendent is

satisfied that because of cancellations, some mistake of fact, error in

calculation, or erroneous interpretation of a statute of this or any

other state, any authorized insurer or excess line broker has paid to

him pursuant to any provision of law, taxes, fees or other charges in

excess of the amount legally chargeable against it during the three year

period immediately preceding the cancellations or the discovery of such

overpayment, he shall refund to such insurer or excess line broker the

amount of such excess by applying the amount toward the payment of

taxes, fees or other charges already due or which may become due from

such insurer until such excess has been fully refunded or at his

discretion make a cash refund. The excess line broker shall pay the

insured any refund of premium tax returned to such excess line broker if

such taxes were originally collected from the insured. Such cash refund

may be paid from any moneys not turned over to the department of

taxation and finance pursuant to the provisions of the state finance

law.

(2) The superintendent shall retain from the taxes collected pursuant

to this article an amount sufficient to provide at all times a fund not

to exceed ten thousand dollars out of which he shall pay any refunds to

which taxpayers shall be entitled under this article.

(b) (1) If a company, association or person fails within the

prescribed time to file any report or statement required by this article

or by section two thousand one hundred eighteen of this chapter, or to

make any payment due under the provisions of this article or sections

three hundred thirty-three, one thousand one hundred twelve, two

thousand one hundred five, two thousand one hundred eighteen or four

thousand four hundred seven of this chapter or section two hundred six

of the financial services law, the superintendent may order such

company, association or person to pay to the people of this state the

following penalties:

(A) not less than one hundred nor more than five hundred dollars for

each and every failure to file a report or statement within the time

prescribed;

(B) five percent of the principal amount of any payment due plus an

additional one percent of said sum for the second and subsequent months

or fractions thereof during which payment has not been made.

(2) The superintendent may, in his discretion, waive or remit all or

any part of such penalties if he finds that delay was excusable.