§ 2120 — Fiduciary capacity of insurance agents, title insurance agents, insurance brokers and reinsurance intermediaries

New York § 2120

• Jurisdiction: New York
• Law ISC: Insurance
• Art. 21: Agents, Brokers, Adjusters, Consultants and Intermediaries

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§ 2120. Fiduciary capacity of insurance agents, title insurance\nagents, insurance brokers and reinsurance intermediaries.\n (a) Every insurance agent, title insurance agent, and insurance broker\nacting as such in this state shall be responsible in a fiduciary\ncapacity for all funds received or collected as insurance agent or\ninsurance broker, and shall not, without the express consent of his, her\nor its principal, mingle any such funds with his, her or its own funds\nor with funds held by him, her or it in any other capacity.\n (b) Every reinsurance intermediary acting as such in this state shall\nbe responsible, in a fiduciary capacity for all funds received or\ncollected in such capacity, and shall not, without the express consent\nof his or its principal or principals, mingle any such funds with his or\nits own funds or with funds held by him or it in any other capacity.\n (c) This section shall not require any such insurance agent, title\ninsurance agent, insurance broker or reinsurance intermediary to\nmaintain a separate bank deposit for the funds of each such principal,\nif and as long as the funds so held for each such principal are\nreasonably ascertainable from the books of account and records of such\nagent, broker or reinsurance intermediary, as the case may be.\n (d) A retail insurance producer who violates paragraph (a) of\nsubdivision two of section five hundred seventy-seven-a of the banking\nlaw shall be liable for actual damages for the failure to notify, in\nwriting, the premium finance agency of the information required pursuant\nto such paragraph (a).\n