§ 570 — Restrictions on premium finance agreements

New York § 570

• Jurisdiction: New York
• Law BNK: Banking
• Art. 12-B: Insurance Premium Finance Agencies

Text

§ 570. Restrictions on premium finance agreements. 1. No premium\nfinance agreement shall contain any provision by which:\n (a) In the absence of default of the insured, the premium finance\nagency holding the agreement may, arbitrarily and without reasonable\ncause, accelerate the maturity of any part or all of the amount owing\nthereunder;\n (b) A power of attorney is given to confess judgment in this state; or\n (c) The insured relieves the insurance agent or broker or the premium\nfinance agency holding the agreement from liability for any legal rights\nor remedies that the insured may otherwise have against the insurance\nagent or broker.\n 2. No person may use a premium finance agreement in a manner designed\nto evade any requirement of article seventy-eight of the insurance law.\n 3. Every person or premium finance agency that enters into a premium\nfinance agreement, as such terms are defined pursuant to article\ntwelve-B of this chapter, shall file in the office of the superintendent\nof financial services, on or before the first day of March, a statement,\nto be known as its annual statement, verified by the oath of at least\ntwo of its principal officers, showing its condition at the end of the\npreceding calendar year. The statement shall be in such form and shall\ncontain such other matters as the superintendent of financial services\nshall prescribe. In addition to any other requirements, the annual\nstatement shall specify the total number, aggregate face amount and life\nsettlement proceeds of, policies settled during the immediately\npreceding calendar year, together with a breakdown of the information by\npolicy issue year.\n