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This entry was published on 2014-09-22
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Restrictions on premium finance agreements
§ 570. Restrictions on premium finance agreements. 1. No premium
finance agreement shall contain any provision by which:

(a) In the absence of default of the insured, the premium finance
agency holding the agreement may, arbitrarily and without reasonable
cause, accelerate the maturity of any part or all of the amount owing

(b) A power of attorney is given to confess judgment in this state; or

(c) The insured relieves the insurance agent or broker or the premium
finance agency holding the agreement from liability for any legal rights
or remedies that the insured may otherwise have against the insurance
agent or broker.

2. No person may use a premium finance agreement in a manner designed
to evade any requirement of article seventy-eight of the insurance law.

3. Every person or premium finance agency that enters into a premium
finance agreement, as such terms are defined pursuant to article
twelve-B of this chapter, shall file in the office of the superintendent
of financial services, on or before the first day of March, a statement,
to be known as its annual statement, verified by the oath of at least
two of its principal officers, showing its condition at the end of the
preceding calendar year. The statement shall be in such form and shall
contain such other matters as the superintendent of financial services
shall prescribe. In addition to any other requirements, the annual
statement shall specify the total number, aggregate face amount and life
settlement proceeds of, policies settled during the immediately
preceding calendar year, together with a breakdown of the information by
policy issue year.