2023 New York Laws › ISC - Insurance › Article 21 - Agents, Brokers, Adjusters, Consultants and Intermediaries › 2119 - Insurance Agents, Brokers, Consultants, Life Settlement Brokers, and Title Insurance Agents; Written Contract for Compensation; Excess Charges Prohibited.

§  2119.  Insurance  agents,  brokers,  consultants,  life  settlement
brokers, and title insurance agents; written contract for  compensation;
excess charges prohibited.
(a) (1) No person licensed as an insurance agent, broker or consultant
may  receive  any  fee,  commission  or  thing  of  value for examining,
appraising, reviewing or evaluating any insurance policy, bond,  annuity
or  pension  or  profit-sharing  contract, plan or program or for making
recommendations or giving advice with regard to any of the above, unless
such compensation is based upon a written memorandum signed by the party
to be charged and specifying or clearly defining the amount or extent of
such compensation.
(2) A copy of every such memorandum or contract shall be  retained  by
the licensee for not less than three years after such services have been
fully performed.
(b)  (1)  No  person  licensed  as  an  insurance  agent,  broker or a
consultant may receive any compensation, direct or indirect, as a result
of the sale of insurance or annuities to, or the use  of  securities  or
trusts  in  connection  with  pensions  for, any person to whom any such
licensee has performed any related consulting service for which  he  has
received  a  fee  or  contracted  to  receive a fee within the preceding
twelve months unless such compensation is provided for in the memorandum
or contract required pursuant to subsection (a) hereof.
(2) This chapter shall not prohibit the offset, in whole or  in  part,
of  compensation  payable  under  subsection  (a) hereof by compensation
otherwise payable to such consultant as agent or broker as a  result  of
such  sale  of insurance or annuities or the use of securities or trusts
in connection with pensions, if any such offset is provided for  in  the
written memorandum or contract required under subsection (a) hereof.
(c)  (1)  No insurance broker may receive any compensation, other than
commissions deductible from premiums on insurance policies or contracts,
from any insured or prospective insured for or on account of  the  sale,
solicitation  or  negotiation  of, or other services in connection with,
any contract of insurance made or negotiated in this state  or  for  any
other  services  on  account  of  such  insurance policies or contracts,
including  adjustment  of  claims   arising   therefrom,   unless   such
compensation  is based upon a written memorandum, signed by the party to
be charged, and specifying or clearly defining the amount or  extent  of
such compensation.
(2)  A  copy  of every such memorandum shall be retained by the broker
for not less than three  years  after  such  services  have  been  fully
performed.
(3)  This  subsection shall not affect the right of any such broker to
recover from the insured the amount  of  any  premium  or  premiums  for
insurance effectuated by or through such broker.
(4)  This  subsection  shall not affect the requirements of subsection
(a) or (b) hereof, subsection (g) of section two  thousand  one  hundred
one or section two thousand one hundred eight of this article.
(d)   No   insurance  broker  shall,  in  connection  with  the  sale,
solicitation or negotiation, issuance,  delivery  or  transfer  in  this
state  of  any  contract  of insurance made or negotiated in this state,
directly  or  indirectly  charge,  or  receive  from,  the  insured   or
prospective  insured  therein  any  greater sum than the rate of premium
fixed therefor by the insurer obligated as  such  therein,  unless  such
broker  has  a  right to compensation for services created in the manner
specified in subsection (c) of this section.
(e)(1) No person licensed as a life settlement broker may receive  any
compensation for examining, appraising, reviewing or evaluating any life
settlement  contract or for making recommendations or giving advice with

regard to such contract; or receive any compensation from any  owner  or
proposed  owner for or on account of the solicitation or negotiation of,
or other services in  connection  with,  any  life  settlement  contract
subject  to  this  chapter  or for any other services on account of such
contract; unless such compensation is based upon  a  written  memorandum
signed by the party to be charged and specifying or clearly defining the
amount  or  extent of such compensation. A copy of every such memorandum
shall be retained by the licensee for not less than  three  years  after
such services have been fully performed.
(2)  No  person  licensed  as a life settlement broker may receive any
compensation, direct or indirect, for or on account of the  solicitation
or  negotiation  of,  or  other  services  in  connection  with  a  life
settlement contract subject to this chapter from any person for whom any
such licensee has performed any related consulting service for which the
licensee has received a fee or contracted to receive a  fee  within  the
preceding  twelve months unless such compensation is provided for in the
written  memorandum  required  pursuant  to  paragraph   one   of   this
subsection.
(3)  No  person  licensed  as a life settlement broker may receive any
compensation, direct or indirect, from a life settlement provider or any
other person with respect to any life settlement contract  if  the  life
settlement  broker  has  already  received or will receive compensation,
direct or indirect from, or on behalf of, the owner with respect to that
life settlement contract.
(f) No title insurance agent may  receive  any  compensation  or  fee,
direct  or  indirect,  for  or  on  account  of  services  performed  in
connection with the issuance of a title insurance  policy,  unless  such
compensation is:  (1) for ancillary services not encompassed in the rate
of  premium approved by the superintendent; and (2) based upon a written
memorandum signed by the party to be charged, and specifying or  clearly
defining  the  amount  or  extent of such compensation to be charged for
each ancillary service as well as the total  amount  or  extent  of  the
compensation  to  be  charged.  A copy of every such memorandum shall be
retained by the licensee for  not  less  than  three  years  after  such
services  have  been  fully  performed. For purposes of this subsection,
legal services performed by a New York state licensed  attorney  who  is
also  engaged  as  a  title  insurance  agent  shall  not  be considered
ancillary services.