§ 566 — Insurance agents and brokers; acquisition by premium finance agencies of premium finance agreements

New York § 566

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

Text

§ 566. Insurance agents and brokers; acquisition by premium finance\nagencies of premium finance agreements. 1. An insurance agent or broker\nmay be licensed as a premium finance agency in accordance with this\narticle.\n 2. Notwithstanding any contrary provisions of the personal property\nlaw, banking law or other law:\n (a) No premium finance agency, and no employee of such an agency shall\npay, allow or offer to pay or allow in any manner whatsoever to an\ninsurance agent or broker or any employee of an insurance agent or\nbroker, or to any other person, either as an inducement to the financing\nof any insurance policy with the premium finance agency or after any\nsuch policy has been financed, any rebate whatsoever, either from the\nservice charge for financing specified in the premium finance agreement\nor otherwise, or shall give or offer to give any valuable consideration\nor inducement of any kind directly or indirectly, other than an article\nof merchandise not exceeding one dollar in value which shall have\nthereon the advertisement of the premium finance agency, but a premium\nfinance agency may purchase or otherwise acquire a premium finance\nagreement, provided that it conforms to this article in all respects,\nfrom an insurance agent or broker or another premium finance agency with\nrecourse against the agent, broker or agency on such terms and\nconditions as may be mutually agreed upon; and\n (b) No filing of the assignment or notice thereof to the insured shall\nbe necessary to the validity of the written assignment of a premium\nfinance agreement as against creditors or subsequent purchasers,\npledgees or encumbrances of the assignor.\n