NY Ins L § 2123 (2021)
2021 New York Laws ISC - Insurance Article 21 - Agents, Brokers, Adjusters, Consultants and Intermediaries 2123 - Misrepresentations, Misleading Statements and Incomplete Comparisons.

§  2123.  Misrepresentations,  misleading  statements  and  incomplete comparisons. (a) (1) No agent or representative of any insurer or health maintenance organization authorized to transact life, accident or health insurance or health maintenance organization  business  in  this  state, insurance  broker,  person  who  has  received a grant from and has been certified by the health benefit exchange established pursuant to section 1311 of the Affordable Care  Act,  42  U.S.C.  §  18031,  to  act  as  a navigator,  including  any  person employed by a certified navigator, or other person, firm, association or corporation, shall issue or circulate or cause or  permit  to  be  issued  or  circulated,  any  illustration, circular, statement or memorandum misrepresenting the terms, benefits or advantages  of  any  policy  or  contract  of  life,  accident or health insurance, any annuity contract or any health  maintenance  organization contract,  delivered or issued for delivery or to be delivered or issued for delivery, in this state, or shall make any misleading estimate as to the dividends or share of surplus or additional amounts to  be  received in  the  future  on  such policy or contract, or shall make any false or misleading statement  as  to  the  dividends  or  share  of  surplus  or additional  amounts  previously  paid  by  any  such  insurer  or health maintenance organization on similar policies or contracts, or shall make any misleading representation,  or  any  misrepresentation,  as  to  the financial   condition   of   any  such  insurer  or  health  maintenance organization, or as to the legal reserve system upon which such  insurer or health maintenance organization operates.  (2) No such person, firm, association or corporation shall make to any person  or  persons  any  incomplete  comparison of any such policies or contracts of any insurer, insurers, or health maintenance  organization, for  the  purpose  of  inducing,  or  tending  to induce, such person or persons to lapse, forfeit or surrender any insurance  policy  or  health maintenance organization contract.  (3)   Any   replacement  of  individual  life  insurance  policies  or individual annuity contracts of an insurer by an  agent,  representative of  the  same  or different insurer or broker shall conform to standards promulgated by regulation by the superintendent. Such regulation shall:  (A) specify what constitutes  the  replacement  of  a  life  insurance policy  or  annuity  contract and the proper disclosure and notification procedures to replace a policy or contract;  (B) require notification of the proposed replacement  to  the  insurer whose policies or contracts are intended to be replaced;  (C)  require  the timely exchange of illustrative and cost information required by section three thousand two hundred nine of this chapter  and necessary  for  completion  of a comparison of the proposed and replaced coverage; and  (D)  provide  for  a  sixty-day  period  following  issuance  of   the replacement  policies  or  contracts during which the policy or contract owner may return the policies or contracts and  reinstate  the  replaced policies or contracts.  (b)  Any  comparison of the policies or contracts of any such insurer, insurers or health maintenance organization shall be  deemed  to  be  an incomplete comparison if it does not conform to all the requirements for comparisons established by regulation.  (c) In the determination, judicial or otherwise, of the incompleteness or misleading character of any such comparison, it shall not be presumed that  the  insured  knew  or  knows  of  any of the provisions, terms or benefits  contained  in  any  insurance  policy  or  health  maintenance organization contract.  (d)  Any  agent  or representative of an insurer or health maintenance organization, insurance broker, person who has received a grant from and  has been certified by the health benefit exchange  established  pursuant to section 1311 of the affordable care act, 42 U.S.C. § 18031, to act as a  navigator, including any person employed by a certified navigator, or any  other person, firm, association or corporation who, or which, shall violate any of the  provisions  of  this  section  and  shall  knowingly receive  any  compensation  or  commission for the solicitation, sale or negotiation of any insurance policy, health maintenance organization  or annuity  contract  induced  by a violation of this section shall also be liable for a civil penalty in the amount received by  such  violator  as compensation  or commission, which penalty may be sued for and recovered for his, her, or its own use  and  benefit  by  any  person  induced  to purchase an insurance policy, health maintenance organization or annuity contract  by  such  violation.  In addition, such agent, representative, broker, person, firm, association or corporation violating this  section shall be liable for a civil penalty in the amount of any compensation or commission  lost by any agent, representative or broker as a result of a violation of this section or the making  of  such  false  or  misleading statement,  which penalty may be sued for and recovered for his, her, or its own use and benefit by such agent, representative or broker.   * (e) Except with respect to a credit unemployment  insurance  policy, group  credit life insurance policy, a group credit health, group credit accident or group credit health and accident policy,  or  similar  group credit  insurance  covering  the  person of the insured, state chartered banking institutions, federally chartered banking institutions  and  any person  soliciting  the purchase of or selling insurance on the premises thereof, must disclose or  cause  to  be  disclosed  in  writing,  where practicable,  in  clear  and  concise  language,  to their customers and prospective customers who are solicited  therefor,  that  any  insurance offered or sold:  (1) is not a deposit;  (2) is not insured by the federal deposit insurance corporation or the national credit union share insurance fund, as applicable; and  (3)  is  not  guaranteed by the state chartered banking institution or the federally chartered banking institution.   * NB Repealed September 10, 2024   * (f) For the purposes of this section,  the  terms  "state  chartered banking  institutions"  and  "federally  chartered banking institutions" shall have the same meanings as set forth in subdivision one of  section twelve-a of the banking law.   * NB Repealed September 10, 2024