2023 New York Laws › ISC - Insurance › Article 21 - Agents, Brokers, Adjusters, Consultants and Intermediaries › 2102 - Acting Without a License.

§  2102.  Acting  without  a  license.  (a)  (1)  (A) No person, firm,
association or corporation shall act as an insurance producer, insurance
adjuster  or  life  settlement  broker  in  this  state  without  having
authority  to  do so by virtue of a license issued and in force pursuant
to the provisions of this chapter.
(B) No person, firm, association or corporation shall act as an excess
line broker in this state without having authority to do so by virtue of
a license issued and in force  pursuant  to  section  two  thousand  one
hundred five of this article, provided, however, that such person, firm,
association  or  corporation  shall not be required to be licensed as an
excess line broker where the insured's home state is a state other  than
this  state  and  such  person,  firm,  association  or  corporation  is
otherwise licensed to sell, solicit or negotiate excess  line  insurance
in the insured's home state.
(2)  Any person, firm, association or corporation who or which acts as
a reinsurance intermediary in violation of paragraph one  hereof  shall,
in  addition  to  other  penalties  prescribed  by  law, be subject to a
penalty not to exceed five thousand dollars for each transaction.
(b) (1) Unless licensed as an insurance  agent,  insurance  broker  or
insurance  consultant, no person, firm, association or corporation shall
in this state identify or hold himself or itself out to be an  insurance
advisor, insurance consultant or insurance counselor.
(2)  No  person,  firm, association or corporation shall use any other
designation or title which is likely to mislead the public or shall hold
himself or itself out in  any  manner  as  having  particular  insurance
qualifications  other  than those for which he may be otherwise licensed
or otherwise qualified.
(3) Unless  licensed  as  an  insurance  agent,  insurance  broker  or
insurance consultant with respect to the relevant kinds of insurance, no
person,  firm,  association or corporation shall receive any money, fee,
commission or thing of value for  examining,  appraising,  reviewing  or
evaluating  any  insurance  policy, annuity or pension contract, plan or
program or shall make recommendations or give advice with regard to  any
of the above.
(4) This subsection shall not apply to:
(A)   licensed  attorneys  at  law  of  this  state  acting  in  their
professional capacity as such;
(B) actuaries or certified public accountants who provide information,
recommendations, advice or services in their professional  capacity,  if
neither  they  nor  their  employer receive any compensation directly or
indirectly on  account  of  any  insurance,  bond,  annuity  or  pension
contract   that   results  in  whole  or  part  from  such  information,
recommendation, advice or services; or
(C) regular salaried officers or employees of an  insurer  who  devote
substantially  all  of  their  services  to  activities  other  than the
rendering of consulting services to the insuring public while acting  in
their capacity as such in discharging the duties of their employment.
(5) Paragraphs one and three of this subsection shall not apply to any
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 (i), including persons employed
by certified navigators; provided that the person: (A) has completed the
training required by the health benefit  exchange;  (B)  does  not  sell
insurance; (C) does not engage in any activity with respect to insurance
not  expressly permitted under 42 U.S.C. § 18031 (i) (3) and regulations
thereunder; and (D) does not receive any compensation for  acting  as  a
navigator directly or indirectly from an insured, insurance producer, or
an insurer.
(c)  Unless  licensed  as a reinsurance intermediary, no person, firm,
association or corporation shall in this  state  act  as  a  reinsurance
intermediary  or  use  any other designation or title which is likely to
mislead the public or hold himself or itself out  in  any  manner  as  a
reinsurance intermediary.
(d)  Notwithstanding  the  foregoing,  any  membership  corporation or
voluntary association organized and operating in  this  state  prior  to
January  first,  nineteen  hundred  thirty-nine  may,  as  part  of  its
operations, continue as theretofore to obtain for its  members,  from  a
property/casualty  insurance  company  licensed  to  do business in this
state and having a certificate of qualification from the superintendent,
the surety bonds or insurance policies required  to  be  filed  by  such
members  pursuant  to  section  three hundred seventy of the vehicle and
traffic law and may, without being  licensed  as  an  insurance  broker,
receive  compensation  from  such  members or from such insurer for such
services.
(e)(1) No person shall accept any commission, service  fee,  brokerage
or  other  valuable consideration for selling, soliciting or negotiating
insurance in this state if that person is required to be licensed  under
this article and is not so licensed.
(2)  Renewal  or other deferred commissions may be paid to a person or
other entity for selling, soliciting or negotiating  insurance  in  this
state  if  the  person or other entity was required to be licensed under
this article at the time of the sale, solicitation  or  negotiation  and
was so licensed at that time.
(3)   An   insurer,  fraternal  benefit  society,  health  maintenance
organization  or  licensed  insurance  producer  may   pay   or   assign
commissions, service fees, brokerages or other valuable consideration to
an  insurance  producer  or  to  persons  who  do  not  sell, solicit or
negotiate a contract of insurance in  this  state,  unless  the  payment
would violate any provision of this chapter.
(f)  Every licensee shall notify the superintendent upon changing his,
her or its legal name. Except for an  individual  licensee's  own  legal
name, no licensee shall use any name, in conducting a business regulated
by   this   article  that  has  not  been  previously  approved  by  the
superintendent.
(g) Any person, firm, association or corporation who or that  violates
this  section  shall  be subject to a penalty not to exceed five hundred
dollars for each transaction, except as provided  in  paragraph  two  of
subsection (a) of this section.