2013 New York Consolidated Laws
ISC - Insurance
Article 65 - (6501 - 6508) MORTGAGE GUARANTY INSURANCE COMPANIES
6504 - Required approvals; prohibitions.

 
    §  6504.  Required approvals; prohibitions. (a) Every mortgage insurer
  shall file with the superintendent for his approval in  accordance  with
  article  twenty-three  of  this  chapter  its  premium  rates,  forms of
  policies, certificates,  applications  and  other  forms  pertaining  to
  mortgage  guaranty  insurance.  The  premium  rate  charged for mortgage
  guaranty insurance shall not be deemed to be interest for  the  purposes
  of section 5-501 of the general obligations law.
    (b) No mortgage insurer shall pay:
    (1)  to any person who is acting as agent, representative, attorney or
  employee of the owner, mortgagee of the prospective owner, or  mortgagee
  of  the  real  property  or  any  interest  therein,  either directly or
  indirectly, any consideration as an inducement for or as compensation on
  any mortgage guaranty insurance business; or
    (2) any compensation to any person for transacting  insurance  for  or
  with  it  based  in whole or in part upon a commission basis unless such
  person is licensed pursuant to this chapter.
    (c) In connection with the placement or renewal of  any  insurance,  a
  mortgage  insurer  shall  not  permit any compensation to be paid to, or
  received by: any insured lender; any officer, director, or  employee  of
  the  insured;  any  member  of  their immediate family; any corporation,
  partnership, trust, or trade  association  in  which  an  insured  is  a
  member;  or  other  entity  in  which  an  insured  or any such officer,
  director, or employee or any member of  their  immediate  family  has  a
  financial interest; or any designee, trustee, nominee, or other agent or
  representative of any of the foregoing.
    (d)  The  superintendent  may,  after a hearing, suspend or revoke the
  license of any mortgage insurer which, after  ten  days  written  notice
  from  the  superintendent requiring it to cease and desist, continues to
  pay any consideration in willful violation of this article.