2017 New York Laws
ISC - Insurance
Article 45 - Fraternal Benefit Societies
4523 - Soliciting Membership in Unauthorized Societies; Penalties.

  4523.  Soliciting  membership in unauthorized societies; penalties.
  (a) Any person, firm, association or  corporation  who  or  which  shall
  solicit  a  member  or  members for, or in any way assist in procuring a
  member or members for, or collect payments or dues for or in  connection
  with  the  membership  of,  any  fraternal  benefit society which is not
  licensed to do business in this state and which is  not  exempted  under
  the  provisions of section four thousand five hundred twenty-two of this
  article shall be guilty of a misdemeanor, and in addition, such  person,
  firm,  association  or  corporation  shall be liable to a penalty of one
  hundred dollars for each person so solicited or so procured to become  a
  member  in  such  unauthorized society, and may in addition to either of
  the foregoing, be enjoined from doing any such  unlawful  acts,  in  the
  manner specified in section three hundred twenty-seven of this chapter.
(b)  The  provisions  of  subsection (a) hereof shall not apply to the
  conduct of a designated representative acting under the authority of  an
  unlicensed fraternal benefit society which was heretofore licensed to do
  business  in  this  state  and  has  obtained  a  certificate  from  the
  superintendent authorizing designated representatives to  act  for  such
  society  in  the  collection of payments or dues from members or perform
  any act incident to existing membership but not to  solicit  members  or
  assist  in procuring members. The application for such certificate shall
  be on such form or forms and supplements thereto, and shall contain such
  information,  as  the  superintendent  may  prescribe.  There  shall  be
  attached  to  such  forms  a statement by such society stating that such
  society has satisfied itself that the proposed designated representative
  is trustworthy and competent to act as  such  designated  representative
  and  that  the  society  will  appoint  him  to  act  as  its designated
  representative. Such statement shall be subscribed by an officer of such
  society and affirmed by such officer as  true  under  the  penalties  of
  perjury.    The   superintendent   may   revoke   the   superintendent's
  authorization of any designated representative after notice and  hearing
  and  on the grounds enumerated in subsection (a) of section two thousand
  one hundred ten of this chapter.