2013 New York Consolidated Laws
ISC - Insurance
Article 21 - (2101 - 2138) AGENTS, BROKERS, ADJUSTERS, CONSULTANTS AND INTERMEDIARIES
2120 - Fiduciary capacity of insurance agents, insurance brokers and reinsurance intermediaries.

 
    §  2120. Fiduciary capacity of insurance agents, insurance brokers and
  reinsurance  intermediaries.  (a)  Every  insurance  agent   and   every
  insurance  broker acting as such in this state shall be responsible in a
  fiduciary capacity for all funds  received  or  collected  as  insurance
  agent or insurance broker, and shall not, without the express consent of
  his or its principal, mingle any such funds with his or its own funds or
  with funds held by him or it in any other capacity.
    (b)  Every reinsurance intermediary acting as such in this state shall
  be responsible, in a  fiduciary  capacity  for  all  funds  received  or
  collected  in  such capacity, and shall not, without the express consent
  of his or its principal or principals, mingle any such funds with his or
  its own funds or with funds held by him or it in any other capacity.
    (c)  This  section  shall  not  require  any  such  agent,  broker  or
  reinsurance  intermediary  to  maintain  a separate bank deposit for the
  funds of each such principal, if and as long as the funds  so  held  for
  each  such  principal  are  reasonably  ascertainable  from the books of
  account and records of such agent, broker or  reinsurance  intermediary,
  as the case may be.
    (d)  A  retail  insurance  producer  who  violates  paragraph  (a)  of
  subdivision two of section five hundred seventy-seven-a of  the  banking
  law  shall  be  liable  for actual damages for the failure to notify, in
  writing, the premium finance agency of the information required pursuant
  to such paragraph (a).