N.Y. ISC Law § 2112 — New York Code / Act ISC / Article 21 / Section 2112
Certificate of appointment of an insurance producer to act as an agent and notice of termination of an insurance producer
Status: in_force

§ 2112. Certificate of appointment of an insurance producer to act as\nan agent and notice of termination of an insurance producer.  (a) Every\ninsurer, fraternal benefit society or health maintenance organization\ndoing business in this state shall file a certificate of appointment in\nsuch form as the superintendent may prescribe in order to appoint\ninsurance agents or, in the case of a title insurance corporation, title\ninsurance agents, to represent such insurer, fraternal benefit society\nor health maintenance organization.\n  (b) To appoint a producer, the appointing insurer shall file, in a\nformat approved by the superintendent, a notice of appointment within\nfifteen days from the date the agency contract is executed or the first\ninsurance application is submitted.\n  (c) Certificates of appointment shall be valid until (1) terminated by\nthe appointing insurer or title insurance agent after a termination in\naccordance with the provisions of the agency contract; (2) the license\nis suspended or revoked by the superintendent; or (3) the license\nexpires and is not renewed.\n  (d) Every insurer, fraternal benefit society or health maintenance\norganization or insurance producer or the authorized representative of\nthe insurer, fraternal benefit society, health maintenance organization\nor insurance producer doing business in this state shall, upon\ntermination of the certificate of appointment as set forth in subsection\n(a) of this section of any insurance agent, or title insurance agent\nlicensed in this state, or upon termination for cause for activities as\nset forth in subsection (a) of section two thousand one hundred ten of\nthis article, of the certificate of appointment, of employment, of a\ncontract or other insurance business relationship with any insurance\nproducer, file with the superintendent within thirty days a statement,\nin such form as the superintendent may prescribe, of the facts relative\nto such termination for cause. The insurer, fraternal benefit society,\nhealth maintenance organization, insurance producer or the authorized\nrepresentative of the insurer, fraternal benefit society, health\nmaintenance organization or insurance producer shall provide, within\nfifteen days after notification has been sent to the superintendent, a\ncopy of the statement filed with the superintendent to the insurance\nproducer at his, or her or its last known address by certified mail,\nreturn receipt requested, postage prepaid or by overnight delivery using\na nationally recognized carrier. Every statement made pursuant to this\nsubsection shall be deemed a privileged communication.\n  (e) The insurer, fraternal benefit society, health maintenance\norganization, insurance producer or the authorized representative of the\ninsurer, fraternal benefit society, health maintenance organization or\ninsurance producer shall promptly notify the superintendent in a format\nacceptable to the superintendent if, upon further review or\ninvestigation, the insurer, fraternal benefit society, health\nmaintenance organization or insurance producer or the authorized\nrepresentative of the insurer, fraternal benefit society, health\nmaintenance organization or insurance producer discovers additional\ninformation that would have been reportable to the superintendent had\nthe insurer then known of its existence. Every statement made pursuant\nto this subsection shall be deemed a privileged communication.\n  (f)(1) Within fifteen days after making the notification required by\nsubsection (e) of this section the insurer, fraternal benefit society,\nhealth maintenance organization or insurance producer or the authorized\nrepresentative of the insurer, fraternal benefit society, health\nmaintenance organization or insurance producer shall mail a copy of the\nnotification to the insurance producer at his, her or its last known\naddress by certified mail, return receipt requested, postage prepaid or\nby overnight delivery using a nationally recognized carrier.\n  (2) Within thirty days after the insurance producer has received the\noriginal or additional notification, the insurance producer may file\nwritten comments concerning the substance of the notification with the\nsuperintendent. The insurance producer shall, by the same means,\nsimultaneously send a copy of the comments to the reporting insurer,\nfraternal benefit society, health maintenance organization or insurance\nproducer or the authorized representative of the insurer, fraternal\nbenefit society, health maintenance organization or insurance producer\nand the comments shall become a part of the superintendent's file and\naccompany every copy of a report distributed or disclosed for any reason\nabout the insurance producer as permitted by section one hundred ten of\nthis chapter.\n  (g)(1) In the absence of fraud, bad faith or gross negligence, an\ninsurer, fraternal benefit society or health maintenance organization,\nor the authorized representative of the insurer, fraternal benefit\nsociety or health maintenance organization, an insurance producer, the\nsuperintendent, or an organization of which the superintendent is a\nmember and that compiles the information and makes it available to other\ninsurance superintendents or commissioners or regulatory or law\nenforcement agencies shall not be subject to civil liability, and a\ncivil cause of action of any nature shall not arise against these\nentities or their respective agents or employees as a result of any\nstatement or information required by or provided pursuant to this\nsection or any information relating to any statement that may be\nrequested in writing by the superintendent, from an insurer, fraternal\nbenefit society or health maintenance organization or the authorized\nrepresentative of the insurer, or insurance producer, or a statement by\na terminating insurer, fraternal benefit society or health maintenance\norganization or the authorized representative of the insurer, fraternal\nbenefit society or health maintenance organization, or insurance\nproducer to an insurer, fraternal benefit society or health maintenance\norganization or the authorized representative of the insurer, fraternal\nbenefit society or health maintenance organization, or insurance\nproducer, limited solely and exclusively to whether a termination for\ncause was reported to the superintendent, provided that the propriety of\nany termination for cause is certified in writing by an officer or\nauthorized representative of the insurer, fraternal benefit society or\nhealth maintenance organization or the authorized representative of the\ninsurer, fraternal benefit society or health maintenance organization or\ninsurance producer terminating the relationship.\n  (2) In any action brought against a person that may have immunity\nunder paragraph one of this subsection for making any statement required\nby this section or providing any information relating to any statement\nthat may be requested by the superintendent, the party bringing the\naction shall plead specifically in any allegation that paragraph one of\nthis subsection does not apply because the person making the statement\nor providing the information did so fraudulently, in bad faith or\nthrough gross negligence.\n  (3) Paragraphs one and two of this subsection shall not abrogate or\nmodify any existing statutory or common law privileges or immunities.\n  (h) (1) Any documents, materials or other information in the control\nor possession of the superintendent that is furnished by an insurer,\nfraternal benefit society or health maintenance organization, the\nauthorized representative of the insurer, fraternal benefit society or\nhealth maintenance organization, or insurance producer, or an employee\nor agent thereof acting on behalf of the insurer, fraternal benefit\nsociety or health maintenance organization, authorized representative of\nthe insurer, fraternal benefit society or health maintenance\norganization or insurance producer relating to the termination of an\ninsurance producer pursuant to this section or obtained by the\nsuperintendent in an investigation pursuant to this section shall be\nconfidential by law and privileged, shall not be subject to freedom of\ninformation requests, shall not be subject to subpoena, and shall not be\nsubject to discovery or admissible in evidence in any private civil\naction. However, the superintendent is authorized to use the documents,\nmaterials or other information in furtherance of any regulatory or legal\naction brought as a part of the superintendent's duties. Further, this\nparagraph shall not apply to any documents, materials or other\ninformation in the control or possession of any person or entity other\nthan the superintendent or the department, regardless of whether or not\nsuch documents, materials or other information are identical or similar\nto documents, materials or other information in the superintendent's\ncontrol or possession to which the confidentiality restrictions of this\nparagraph apply.\n  (2) Neither the superintendent nor any person who received documents,\nmaterials or other information while acting under the authority of the\nsuperintendent shall be permitted or required to testify in any private\ncivil action concerning any confidential documents, materials, or\ninformation subject to the provisions of paragraph one of this\nsubsection.\n  (3) Nothing in this article shall prohibit the superintendent from\nreleasing final, adjudicated actions including for cause terminations\nthat are open to public inspection pursuant to article six of the public\nofficers law to a data base or other clearinghouse service maintained by\nthe National Association of Insurance Commissioners, its affiliates or\nsubsidiaries.\n  (i) An insurer, fraternal benefit society or health maintenance\norganization, authorized representative of an insurer, fraternal benefit\nsociety or health maintenance organization or an insurance producer that\nfails to report as required under the provisions of this section or that\nis found to have reported fraudulently, in bad faith or through gross\nnegligence by a court of competent jurisdiction may, after notice and\nhearing, have its license or certificate of authority suspended or\nrevoked and may be fined in accordance with the provisions of this\nchapter, provided, however, that an insurer may be fined up to five\nthousand dollars. In the case of a domestic insurer, the provisions of\narticle seventy-four of this chapter shall all also apply.\n