2023 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.