NY Ins L § 2112 (2021)
2021 New York Laws ISC - Insurance Article 21 - Agents, Brokers, Adjusters, Consultants and Intermediaries 2112 - Certificate of Appointment of an Insurance Producer to Act as an Agent and Notice of Termination of an Insurance Producer.

§  2112. Certificate of appointment of an insurance producer to act as an agent and notice of termination of an insurance producer.  (a)  Every insurer,  fraternal  benefit  society or health maintenance organization doing business in this state shall file a certificate of appointment  in such  form  as  the  superintendent  may  prescribe  in order to appoint insurance agents or, in the case of a title insurance corporation, title insurance agents, to represent such insurer, fraternal  benefit  society or health maintenance organization.  (b)  To  appoint  a  producer, the appointing insurer shall file, in a format approved by the superintendent, a notice  of  appointment  within fifteen  days from the date the agency contract is executed or the first insurance application is submitted.  (c) Certificates of appointment shall be valid until (1) terminated by the appointing insurer or title insurance agent after a  termination  in accordance  with  the provisions of the agency contract; (2) the license is suspended or revoked  by  the  superintendent;  or  (3)  the  license expires and is not renewed.  (d)  Every  insurer,  fraternal  benefit society or health maintenance organization or insurance producer or the authorized  representative  of the  insurer, fraternal benefit society, health maintenance organization or  insurance  producer  doing  business  in  this  state  shall,   upon termination of the certificate of appointment as set forth in subsection (a)  of  this  section  of any insurance agent, or title insurance agent licensed in this state, or upon termination for cause for activities  as set  forth  in subsection (a) of section two thousand one hundred ten of this article, of the certificate of appointment,  of  employment,  of  a contract  or  other  insurance  business relationship with any insurance producer, file with the superintendent within thirty days  a  statement, in  such form as the superintendent may prescribe, of the facts relative to such termination for cause. The insurer, fraternal  benefit  society, health  maintenance  organization,  insurance producer or the authorized representative  of  the  insurer,  fraternal  benefit  society,   health maintenance  organization  or  insurance  producer shall provide, within fifteen days after notification has been sent to the  superintendent,  a copy  of  the  statement  filed with the superintendent to the insurance producer at his, or her or its last known  address  by  certified  mail, return receipt requested, postage prepaid or by overnight delivery using a  nationally  recognized carrier. Every statement made pursuant to this subsection shall be deemed a privileged communication.  (e)  The  insurer,  fraternal  benefit  society,  health   maintenance organization, insurance producer or the authorized representative of the insurer,  fraternal  benefit society, health maintenance organization or insurance producer shall promptly notify the superintendent in a  format acceptable   to   the   superintendent   if,   upon  further  review  or investigation,  the   insurer,   fraternal   benefit   society,   health maintenance   organization  or  insurance  producer  or  the  authorized representative  of  the  insurer,  fraternal  benefit  society,   health maintenance  organization  or  insurance  producer  discovers additional information that would have been reportable to  the  superintendent  had the  insurer  then known of its existence. Every statement made pursuant to this subsection shall be deemed a privileged communication.  (f)(1) Within fifteen days after making the notification  required  by subsection  (e)  of this section the insurer, fraternal benefit society, health maintenance organization or insurance producer or the  authorized representative   of  the  insurer,  fraternal  benefit  society,  health maintenance organization or insurance producer shall mail a copy of  the notification  to  the  insurance  producer at his, her or its last known  address by certified mail, return receipt requested, postage prepaid  or by overnight delivery using a nationally recognized carrier.  (2)  Within  thirty days after the insurance producer has received the original or additional notification, the  insurance  producer  may  file written  comments  concerning the substance of the notification with the superintendent.  The  insurance  producer  shall,  by  the  same  means, simultaneously  send  a  copy  of the comments to the reporting insurer, fraternal benefit society, health maintenance organization or  insurance producer  or  the  authorized  representative  of the insurer, fraternal benefit society, health maintenance organization or  insurance  producer and  the  comments  shall become a part of the superintendent's file and accompany every copy of a report distributed or disclosed for any reason about the insurance producer as permitted by section one hundred ten  of this chapter.  (g)(1)  In  the  absence  of  fraud, bad faith or gross negligence, an insurer, fraternal benefit society or health  maintenance  organization, or  the  authorized  representative  of  the  insurer, fraternal benefit society or health maintenance organization, an insurance  producer,  the superintendent,  or  an  organization  of  which the superintendent is a member and that compiles the information and makes it available to other insurance  superintendents  or  commissioners  or  regulatory   or   law enforcement  agencies  shall  not  be  subject to civil liability, and a civil cause of action of  any  nature  shall  not  arise  against  these entities  or  their  respective  agents  or employees as a result of any statement or information  required  by  or  provided  pursuant  to  this section  or  any  information  relating  to  any  statement  that may be requested in writing by the superintendent, from an  insurer,  fraternal benefit  society  or  health  maintenance organization or the authorized representative of the insurer, or insurance producer, or a statement  by a  terminating  insurer, fraternal benefit society or health maintenance organization or the authorized representative of the insurer,  fraternal benefit   society  or  health  maintenance  organization,  or  insurance producer to an insurer, fraternal benefit society or health  maintenance organization  or the authorized representative of the insurer, fraternal benefit  society  or  health  maintenance  organization,  or   insurance producer,  limited  solely  and exclusively to whether a termination for cause was reported to the superintendent, provided that the propriety of any termination for cause is certified  in  writing  by  an  officer  or authorized  representative  of the insurer, fraternal benefit society or health maintenance organization or the authorized representative of  the insurer, fraternal benefit society or health maintenance organization or insurance producer terminating the relationship.  (2)  In  any  action  brought  against a person that may have immunity under paragraph one of this subsection for making any statement required by this section or providing any information relating to  any  statement that  may  be  requested  by  the superintendent, the party bringing the action shall plead specifically in any allegation that paragraph one  of this  subsection  does not apply because the person making the statement or providing the information  did  so  fraudulently,  in  bad  faith  or through gross negligence.  (3)  Paragraphs  one  and two of this subsection shall not abrogate or modify any existing statutory or common law privileges or immunities.  (h) (1) Any documents, materials or other information in  the  control or  possession  of  the  superintendent that is furnished by an insurer, fraternal  benefit  society  or  health  maintenance  organization,  the authorized  representative  of the insurer, fraternal benefit society or health maintenance organization, or insurance producer, or  an  employee or  agent  thereof  acting  on  behalf of the insurer, fraternal benefit  society or health maintenance organization, authorized representative of the  insurer,  fraternal   benefit   society   or   health   maintenance organization  or  insurance  producer  relating to the termination of an insurance   producer  pursuant  to  this  section  or  obtained  by  the superintendent in an investigation pursuant to  this  section  shall  be confidential  by  law and privileged, shall not be subject to freedom of information requests, shall not be subject to subpoena, and shall not be subject to discovery or admissible in  evidence  in  any  private  civil action.  However, the superintendent is authorized to use the documents, materials or other information in furtherance of any regulatory or legal action brought as a part of the superintendent's duties.  Further,  this paragraph   shall  not  apply  to  any  documents,  materials  or  other information in the control or possession of any person or  entity  other than  the superintendent or the department, regardless of whether or not such documents, materials or other information are identical or  similar to  documents,  materials  or  other information in the superintendent's control or possession to which the confidentiality restrictions of  this paragraph apply.  (2)  Neither the superintendent nor any person who received documents, materials or other information while acting under the authority  of  the superintendent  shall be permitted or required to testify in any private civil  action  concerning  any  confidential  documents,  materials,  or information   subject  to  the  provisions  of  paragraph  one  of  this subsection.  (3) Nothing in this article shall  prohibit  the  superintendent  from releasing  final,  adjudicated  actions including for cause terminations that are open to public inspection pursuant to article six of the public officers law to a data base or other clearinghouse service maintained by the National Association of Insurance Commissioners, its  affiliates  or subsidiaries.  (i)  An  insurer,  fraternal  benefit  society  or  health maintenance organization, authorized representative of an insurer, fraternal benefit society or health maintenance organization or an insurance producer that fails to report as required under the provisions of this section or that is found to have reported fraudulently, in bad faith  or  through  gross negligence  by  a  court of competent jurisdiction may, after notice and hearing, have its license  or  certificate  of  authority  suspended  or revoked  and  may  be  fined  in  accordance with the provisions of this chapter, provided, however, that an insurer may  be  fined  up  to  five thousand  dollars.  In the case of a domestic insurer, the provisions of article seventy-four of this chapter shall all also apply.