New York Codes, Rules and Regulations › Title 3 - BANKING › Chapter III - SUPERINTENDENT'S REGULATIONS › Subchapter B - NON-BANKING ORGANIZATIONS › Part 405 - Premium Finance Agencies › Section 405.1 - Books and records

Current through Register Vol. 46, No. 28, July 10, 2024
(a)
				  Until payment in full, every licensee shall file each premium finance agreement
				  or duplicate originals, thereof, and all original documents relating thereto
				  (except those papers returned to the insured) so as to be readily available for
				  inspection at any time. All such papers and instruments shall bear a common
				  identifying number.
(b) Every
				  insurance premium finance agreement which originates with a broker or agent
				  shall contain a statement of the amount of the charge under Insurance Law,
				  section
				  2119, and a statement as to the services
				  for which such charge is made. A statement that "the services for which the
				  charge pursuant to Insurance Law, section
				  2119, is imposed are in connection with
				  obtaining and servicing the policies listed hereon" will normally suffice. If
				  such charge is not being financed, the amount thereof, if any, need not be set
				  forth in the calculations required under Banking Law, section
				  567(3)(b), but may be set
				  forth separately in the agreement with an appropriate indication that it is not
				  being financed. An insurance premium finance agreement which does not originate
				  with an agent or broker need not contain such statement unless the charge
				  pursuant to Insurance Law, section
				  2119, is being financed. Unless such
				  premium finance agreement contains a statement with respect to such charge,
				  every premium finance agency, as defined in Banking Law, section
				  554(7), shall obtain from
				  the insured at the time of entering into the premium finance agreement a
				  separate statement, to be signed by the insured, stating that the insured has
				  paid no such charge, or if such charge has been paid, the amount thereof.
				  Nothing herein contained shall be construed to impose any duty upon a premium
				  finance agency to verify whether a charge pursuant to Insurance Law, section
				  2119, has been imposed or, if so imposed
				  the amount thereof or the reasons therefor.
(c) Every licensee shall maintain a register,
				  ledger or combination of records containing a summary of premium finance
				  agreements acquired, other than pursuant to a pledge, which can readily show;
(1) the date of acquisition;
(2) the name of the insured;
(3) the identifying number;
(4) the principal balance;
(5) the amount of service charge;
(6) the time balance;
(7) a distribution of proceeds showing the
				  dates, amounts, purposes and names of the person to whom any part of the
				  proceeds is distributed.
The record shall also show the application of any part of
					 the proceeds to an unpaid balance due on an existing premium finance agreement
					 which is terminated by a refinance agreement. For the purpose of this Part, the
					 time balance shall mean the sum of the principal balance plus the amount of the
					 service charge.