2012 New York Consolidated Laws
ISC - Insurance
Article 21 - (2101 - 2137) AGENTS, BROKERS, ADJUSTERS, CONSULTANTS AND INTERMEDIARIES
2119 - Insurance agents, brokers, consultants, and life settlement brokers; written contract for compensation; excess charges prohibited.

 
    §  2119.   Insurance agents, brokers, consultants, and life settlement
  brokers; written contract for compensation; excess  charges  prohibited.
  (a)  (1)  No person licensed as an insurance agent, broker or consultant
  may receive any  fee,  commission  or  thing  of  value  for  examining,
  appraising,  reviewing or evaluating any insurance policy, bond, annuity
  or pension or profit-sharing contract, plan or  program  or  for  making
  recommendations or giving advice with regard to any of the above, unless
  such compensation is based upon a written memorandum signed by the party
  to be charged and specifying or clearly defining the amount or extent of
  such compensation.
    (2)  A  copy of every such memorandum or contract shall be retained by
  the licensee for not less than three years after such services have been
  fully performed.
    (b) (1) No  person  licensed  as  an  insurance  agent,  broker  or  a
  consultant may receive any compensation, direct or indirect, as a result
  of  the  sale  of insurance or annuities to, or the use of securities or
  trusts in connection with pensions for, any  person  to  whom  any  such
  licensee  has  performed any related consulting service for which he has
  received a fee or contracted to  receive  a  fee  within  the  preceding
  twelve months unless such compensation is provided for in the memorandum
  or contract required pursuant to subsection (a) hereof.
    (2)  This  chapter shall not prohibit the offset, in whole or in part,
  of compensation payable under  subsection  (a)  hereof  by  compensation
  otherwise  payable  to such consultant as agent or broker as a result of
  such sale of insurance or annuities or the use of securities  or  trusts
  in  connection  with pensions, if any such offset is provided for in the
  written memorandum or contract required under subsection (a) hereof.
    (c) (1) No insurance broker may receive any compensation,  other  than
  commissions deductible from premiums on insurance policies or contracts,
  from  any  insured or prospective insured for or on account of the sale,
  solicitation or negotiation of, or other services  in  connection  with,
  any  contract  of  insurance made or negotiated in this state or for any
  other services on account  of  such  insurance  policies  or  contracts,
  including   adjustment   of   claims   arising  therefrom,  unless  such
  compensation is based upon a written memorandum, signed by the party  to
  be  charged,  and specifying or clearly defining the amount or extent of
  such compensation.
    (2) A copy of every such memorandum shall be retained  by  the  broker
  for  not  less  than  three  years  after  such services have been fully
  performed.
    (3) This subsection shall not affect the right of any such  broker  to
  recover  from  the  insured  the  amount  of any premium or premiums for
  insurance effectuated by or through such broker.
    (4) This subsection shall not affect the  requirements  of  subsection
  (a)  or  (b)  hereof, subsection (g) of section two thousand one hundred
  one or section two thousand one hundred eight of this article.
    (d)  No  insurance  broker  shall,  in  connection  with   the   sale,
  solicitation  or  negotiation,  issuance,  delivery  or transfer in this
  state of any contract of insurance made or  negotiated  in  this  state,
  directly   or  indirectly  charge,  or  receive  from,  the  insured  or
  prospective insured therein any greater sum than  the  rate  of  premium
  fixed  therefor  by  the  insurer obligated as such therein, unless such
  broker has a right to compensation for services created  in  the  manner
  specified in subsection (c) of this section.
    (e)(1)  No person licensed as a life settlement broker may receive any
  compensation for examining, appraising, reviewing or evaluating any life
  settlement contract or for making recommendations or giving advice  with
  regard  to  such contract; or receive any compensation from any owner or

  proposed owner for or on account of the solicitation or negotiation  of,
  or  other  services  in  connection  with,  any life settlement contract
  subject to this chapter or for any other services  on  account  of  such
  contract;  unless  such  compensation is based upon a written memorandum
  signed by the party to be charged and specifying or clearly defining the
  amount or extent of such compensation. A copy of every  such  memorandum
  shall  be  retained  by the licensee for not less than three years after
  such services have been fully performed.
    (2) No person licensed as a life settlement  broker  may  receive  any
  compensation,  direct or indirect, for or on account of the solicitation
  or  negotiation  of,  or  other  services  in  connection  with  a  life
  settlement contract subject to this chapter from any person for whom any
  such licensee has performed any related consulting service for which the
  licensee  has  received  a fee or contracted to receive a fee within the
  preceding twelve months unless such compensation is provided for in  the
  written   memorandum   required   pursuant  to  paragraph  one  of  this
  subsection.
    (3) No person licensed as a life settlement  broker  may  receive  any
  compensation, direct or indirect, from a life settlement provider or any
  other  person  with  respect to any life settlement contract if the life
  settlement broker has already received  or  will  receive  compensation,
  direct or indirect from, or on behalf of, the owner with respect to that
  life settlement contract.