2013 New York Consolidated Laws
ISC - Insurance
Article 21 - (2101 - 2138) AGENTS, BROKERS, ADJUSTERS, CONSULTANTS AND INTERMEDIARIES
2112 - Certificate of appointment of an insurance producer to act as an agent and notice of termination of an insurance producer.

 
    §  2112. Certificate of appointment of an insurance producer to act as
  an agent and notice of termination of an insurance producer.  (a)  Every
  insurer,  fraternal  benefit  society or health maintenance organization
  doing business in this state shall file a certificate of appointment  in
  such  form  as  the  superintendent  may  prescribe  in order to appoint
  insurance agents to represent such insurer, fraternal benefit society or
  health maintenance organization.
    (b) To appoint a producer, the appointing insurer  shall  file,  in  a
  format  approved  by  the superintendent, a notice of appointment within
  fifteen days from the date the agency contract is executed or the  first
  insurance application is submitted.
    (c) Certificates of appointment shall be valid until (i) terminated by
  the  appointing  insurer  after  a  termination  in  accordance with the
  provisions of the agency contract; (ii)  the  license  is  suspended  or
  revoked  by  the superintendent; or (iii) the license expires and is not
  renewed.
    (d) Every insurer, fraternal benefit  society  or  health  maintenance
  organization  or  insurance producer or the authorized representative of
  the insurer, fraternal benefit society, health maintenance  organization
  or   insurance  producer  doing  business  in  this  state  shall,  upon
  termination of the certificate of appointment as set forth in subsection
  (a) of this section of any insurance agent licensed in  this  state,  or
  upon termination for cause for activities as set forth in subsection (a)
  of  section  two  thousand  one  hundred  ten  of  this  article, of the
  certificate of appointment,  of  employment,  of  a  contract  or  other
  insurance  business  relationship with any insurance producer, file with
  the superintendent within thirty days a statement, in such form  as  the
  superintendent  may prescribe, of the facts relative to such termination
  for cause. The insurer, fraternal benefit  society,  health  maintenance
  organization, insurance producer or the authorized representative of the
  insurer,  fraternal  benefit society, health maintenance organization or
  insurance producer shall provide, within fifteen days after notification
  has been sent to the superintendent, a copy of the statement filed  with
  the  superintendent to the insurance producer at his, or her or its last
  known address by  certified  mail,  return  receipt  requested,  postage
  prepaid  or by overnight delivery using a nationally recognized carrier.
  Every statement made pursuant to  this  subsection  shall  be  deemed  a
  privileged communication.
    (e)   The  insurer,  fraternal  benefit  society,  health  maintenance
  organization, insurance producer or the authorized representative of the
  insurer, fraternal benefit society, health maintenance  organization  or
  insurance  producer shall promptly notify the superintendent in a format
  acceptable  to  the  superintendent   if,   upon   further   review   or
  investigation,   the   insurer,   fraternal   benefit   society,  health
  maintenance  organization  or  insurance  producer  or  the   authorized
  representative   of  the  insurer,  fraternal  benefit  society,  health
  maintenance organization  or  insurance  producer  discovers  additional
  information  that  would  have been reportable to the superintendent had
  the insurer then known of its existence. Every statement  made  pursuant
  to this subsection shall be deemed a privileged communication.
    (f)(1)  Within  fifteen days after making the notification required by
  subsection (e) of this section the insurer, fraternal  benefit  society,
  health  maintenance organization or insurance producer or the authorized
  representative  of  the  insurer,  fraternal  benefit  society,   health
  maintenance  organization or insurance producer shall mail a copy of the
  notification to the insurance producer at his, her  or  its  last  known
  address  by certified mail, return receipt requested, postage prepaid or
  by overnight delivery using a nationally recognized carrier.

    (2) Within thirty days after the insurance producer has  received  the
  original  or  additional  notification,  the insurance producer may file
  written comments concerning the substance of the notification  with  the
  superintendent.  The  insurance  producer  shall,  by  the  same  means,
  simultaneously  send  a  copy  of the comments to the reporting insurer,
  fraternal benefit society, health maintenance organization or  insurance
  producer  or  the  authorized  representative  of the insurer, fraternal
  benefit society, health maintenance organization or  insurance  producer
  and  the  comments  shall become a part of the superintendent's file and
  accompany every copy of a report distributed or disclosed for any reason
  about the insurance producer as permitted by section one hundred ten  of
  this chapter.
    (g)(1)  In  the  absence  of  fraud, bad faith or gross negligence, an
  insurer, fraternal benefit society or health  maintenance  organization,
  or  the  authorized  representative  of  the  insurer, fraternal benefit
  society or health maintenance organization, an insurance  producer,  the
  superintendent,  or  an  organization  of  which the superintendent is a
  member and that compiles the information and makes it available to other
  insurance  superintendents  or  commissioners  or  regulatory   or   law
  enforcement  agencies  shall  not  be  subject to civil liability, and a
  civil cause of action of  any  nature  shall  not  arise  against  these
  entities  or  their  respective  agents  or employees as a result of any
  statement or information  required  by  or  provided  pursuant  to  this
  section  or  any  information  relating  to  any  statement  that may be
  requested in writing by the superintendent, from an  insurer,  fraternal
  benefit  society  or  health  maintenance organization or the authorized
  representative of the insurer, or insurance producer, or a statement  by
  a  terminating  insurer, fraternal benefit society or health maintenance
  organization or the authorized representative of the insurer,  fraternal
  benefit   society  or  health  maintenance  organization,  or  insurance
  producer to an insurer, fraternal benefit society or health  maintenance
  organization  or the authorized representative of the insurer, fraternal
  benefit  society  or  health  maintenance  organization,  or   insurance
  producer,  limited  solely  and exclusively to whether a termination for
  cause was reported to the superintendent, provided that the propriety of
  any termination for cause is certified  in  writing  by  an  officer  or
  authorized  representative  of the insurer, fraternal benefit society or
  health maintenance organization or the authorized representative of  the
  insurer, fraternal benefit society or health maintenance organization or
  insurance producer terminating the relationship.
    (2)  In  any  action  brought  against a person that may have immunity
  under paragraph one of this subsection for making any statement required
  by this section or providing any information relating to  any  statement
  that  may  be  requested  by  the superintendent, the party bringing the
  action shall plead specifically in any allegation that paragraph one  of
  this  subsection  does not apply because the person making the statement
  or providing the information  did  so  fraudulently,  in  bad  faith  or
  through gross negligence.
    (3)  Paragraphs  one  and two of this subsection shall not abrogate or
  modify any existing statutory or common law privileges or immunities.
    (h) (1) Any documents, materials or other information in  the  control
  or  possession  of  the  superintendent that is furnished by an insurer,
  fraternal  benefit  society  or  health  maintenance  organization,  the
  authorized  representative  of the insurer, fraternal benefit society or
  health maintenance organization, or insurance producer, or  an  employee
  or  agent  thereof  acting  on  behalf of the insurer, fraternal benefit
  society or health maintenance organization, authorized representative of
  the  insurer,  fraternal   benefit   society   or   health   maintenance

  organization  or  insurance  producer  relating to the termination of an
  insurance  producer  pursuant  to  this  section  or  obtained  by   the
  superintendent  in  an  investigation  pursuant to this section shall be
  confidential  by  law and privileged, shall not be subject to freedom of
  information requests, shall not be subject to subpoena, and shall not be
  subject to discovery or admissible in  evidence  in  any  private  civil
  action.  However, the superintendent is authorized to use the documents,
  materials or other information in furtherance of any regulatory or legal
  action brought as a part of the superintendent's duties.  Further,  this
  paragraph   shall  not  apply  to  any  documents,  materials  or  other
  information in the control or possession of any person or  entity  other
  than  the superintendent or the department, regardless of whether or not
  such documents, materials or other information are identical or  similar
  to  documents,  materials  or  other information in the superintendent's
  control or possession to which the confidentiality restrictions of  this
  paragraph apply.
    (2)  Neither the superintendent nor any person who received documents,
  materials or other information while acting under the authority  of  the
  superintendent  shall be permitted or required to testify in any private
  civil  action  concerning  any  confidential  documents,  materials,  or
  information   subject  to  the  provisions  of  paragraph  one  of  this
  subsection.
    (3) Nothing in this article shall  prohibit  the  superintendent  from
  releasing  final,  adjudicated  actions including for cause terminations
  that are open to public inspection pursuant to article six of the public
  officers law to a data base or other clearinghouse service maintained by
  the National Association of Insurance Commissioners, its  affiliates  or
  subsidiaries.
    (i)  An  insurer,  fraternal  benefit  society  or  health maintenance
  organization, authorized representative of an insurer, fraternal benefit
  society or health maintenance organization or an insurance producer that
  fails to report as required under the provisions of this section or that
  is found to have reported fraudulently, in bad faith  or  through  gross
  negligence  by  a  court of competent jurisdiction may, after notice and
  hearing, have its license  or  certificate  of  authority  suspended  or
  revoked  and  may  be  fined  in  accordance with the provisions of this
  chapter, provided, however, that an insurer may  be  fined  up  to  five
  thousand  dollars.  In the case of a domestic insurer, the provisions of
  article seventy-four of this chapter shall all also apply.