N.Y. Comp. Codes R. & Regs. tit. 11 § 20.6
Current through Register Vol. 46, No. 45, November 2, 2024
Section 20.6 - Fees; Insurance Law section 2119(a) As used in this section: (1) Compensation means any fee, commission or thing of value other than commissions deductible from premiums on insurance policies or contracts.(2) Licensee means an insurance agent, title insurance agent, insurance broker, insurance consultant, or life settlement broker.(b) Insurance Law section 2119 authorizes a licensee to receive compensation provided that the licensee has obtained a written memorandum signed by the party to be charged, in accordance with such section.(c) A licensee shall not charge or collect compensation without such a memorandum, nor shall any such licensee charge or receive compensation except as provided in Insurance Law section 2119.(d) The memorandum shall include the terms and date of the agreement, and the amount of the compensation. Where compensation is permitted, to the extent practical, the licensee shall obtain the written memorandum prior to rendering the services. The licensee shall not stipulate, charge or accept any compensation if the licensee has not fully disclosed the amount or nature of the compensation or the basis for determining the amount of the compensation prior to the service being rendered. (e) When a licensee is an insurance agent, title insurance agent, or insurance broker, the licensee shall segregate the compensation from fiduciary funds in the licensee's premium account; provided, however, that if the licensee receives or collects funds, such as a check, that includes both fiduciary funds and other compensation, then the licensee may deposit the total funds in the premium account but shall promptly withdraw the fees from the premium account and account for the compensation in a manner consistent with sections 20.3(b)(3) and (4) and 20.4(b) of this Part.N.Y. Comp. Codes R. & Regs. Tit. 11 § 20.6
Amended New York State Register October 18, 2017/Volume XXXIX, Issue 42, eff. 10/18/2017