This text of New York § 577-A (Premium finance agreements) is published on Counsel Stack Legal Research, covering New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.
§ 577-a. Premium finance agreements.
1.Any amount advanced by a\npremium finance agency, with regard to any insurance policy issued\npursuant to any plan established under article fifty-three of the\ninsurance law shall be paid either by check or draft made payable to the\ninsurance company, or, if the company is not known, by check or draft\nmade payable to the entity which pursuant to the plan established under\narticle fifty-three of the insurance law designates which insurer shall\ninsure or service the risk. The check or draft shall not be made payable\nto the insurance agent or broker.\n 2. Where insurance coverage is procured through a wholesale producer\nfor insurance policies financed with a premium finance agency, other\nthan policies subject to subdivision one of this sectio
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§ 577-a. Premium finance agreements. 1. Any amount advanced by a\npremium finance agency, with regard to any insurance policy issued\npursuant to any plan established under article fifty-three of the\ninsurance law shall be paid either by check or draft made payable to the\ninsurance company, or, if the company is not known, by check or draft\nmade payable to the entity which pursuant to the plan established under\narticle fifty-three of the insurance law designates which insurer shall\ninsure or service the risk. The check or draft shall not be made payable\nto the insurance agent or broker.\n 2. Where insurance coverage is procured through a wholesale producer\nfor insurance policies financed with a premium finance agency, other\nthan policies subject to subdivision one of this section:\n (a) Prior to or contemporaneously with the advancement of any funds to\nan insurance retail producer who has procured an insurance policy\nthrough a wholesale producer, the retail producer shall provide the\npremium finance agency with the name and address of the wholesale\nproducer through whom coverage was procured and, if available, the\npolicy number of the insurance policy being financed, in writing;\n (b) The premium finance agency shall notify, in writing, the wholesale\nproducer and the insurance company of the gross premium, the borrower's\nname and address, and, if available, the policy number, within ten (10)\nbusiness days of acceptance of the agreement;\n (c) Failure by the retail producer to comply with paragraph (a) of\nthis subdivision shall be a violation of subsection (d) of section\ntwenty-one hundred twenty of the insurance law, and the retail producer\nshall be liable for actual damages caused by his or her failure to\ndisclose;\n (d) For the purposes of this subdivision, a "retail insurance\nproducer" or "retail producer" means an insurance producer who directly\ndeals with an insured; a "wholesale insurance producer" or "wholesale\nproducer" means the producer from whom or through whom the retail\nproducer has procured coverage on behalf of the insured.\n