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This entry was published on 2014-09-22
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SECTION 2102
Acting without a license
Insurance (ISC) CHAPTER 28, ARTICLE 21
§ 2102. Acting without a license. (a) (1) (A) No person, firm,
association or corporation shall act as an insurance producer, insurance
adjuster or life settlement broker in this state without having
authority to do so by virtue of a license issued and in force pursuant
to the provisions of this chapter.

(B) No person, firm, association or corporation shall act as an excess
line broker in this state without having authority to do so by virtue of
a license issued and in force pursuant to section two thousand one
hundred five of this article, provided, however, that such person, firm,
association or corporation shall not be required to be licensed as an
excess line broker where the insured's home state is a state other than
this state and such person, firm, association or corporation is
otherwise licensed to sell, solicit or negotiate excess line insurance
in the insured's home state.

(2) Any person, firm, association or corporation who or which acts as
a reinsurance intermediary in violation of paragraph one hereof shall,
in addition to other penalties prescribed by law, be subject to a
penalty not to exceed five thousand dollars for each transaction.

(b) (1) Unless licensed as an insurance agent, insurance broker or
insurance consultant, no person, firm, association or corporation shall
in this state identify or hold himself or itself out to be an insurance
advisor, insurance consultant or insurance counselor.

(2) No person, firm, association or corporation shall use any other
designation or title which is likely to mislead the public or shall hold
himself or itself out in any manner as having particular insurance
qualifications other than those for which he may be otherwise licensed
or otherwise qualified.

(3) Unless licensed as an insurance agent, insurance broker or
insurance consultant with respect to the relevant kinds of insurance, no
person, firm, association or corporation shall receive any money, fee,
commission or thing of value for examining, appraising, reviewing or
evaluating any insurance policy, annuity or pension contract, plan or
program or shall make recommendations or give advice with regard to any
of the above.

(4) This subsection shall not apply to:

(A) licensed attorneys at law of this state acting in their
professional capacity as such;

(B) actuaries or certified public accountants who provide information,
recommendations, advice or services in their professional capacity, if
neither they nor their employer receive any compensation directly or
indirectly on account of any insurance, bond, annuity or pension
contract that results in whole or part from such information,
recommendation, advice or services; or

(C) regular salaried officers or employees of an insurer who devote
substantially all of their services to activities other than the
rendering of consulting services to the insuring public while acting in
their capacity as such in discharging the duties of their employment.

(5) Paragraphs one and three of this subsection shall not apply to any
person who has received a grant from and has been certified by the
health benefit exchange established pursuant to section 1311 of the
Affordable Care Act, 42 U.S.C. § 18031 (i), including persons employed
by certified navigators; provided that the person: (A) has completed the
training required by the health benefit exchange; (B) does not sell
insurance; (C) does not engage in any activity with respect to insurance
not expressly permitted under 42 U.S.C. § 18031 (i) (3) and regulations
thereunder; and (D) does not receive any compensation for acting as a
navigator directly or indirectly from an insured, insurance producer, or
an insurer.

(c) Unless licensed as a reinsurance intermediary, no person, firm,
association or corporation shall in this state act as a reinsurance
intermediary or use any other designation or title which is likely to
mislead the public or hold himself or itself out in any manner as a
reinsurance intermediary.

(d) Notwithstanding the foregoing, any membership corporation or
voluntary association organized and operating in this state prior to
January first, nineteen hundred thirty-nine may, as part of its
operations, continue as theretofore to obtain for its members, from a
property/casualty insurance company licensed to do business in this
state and having a certificate of qualification from the superintendent,
the surety bonds or insurance policies required to be filed by such
members pursuant to section three hundred seventy of the vehicle and
traffic law and may, without being licensed as an insurance broker,
receive compensation from such members or from such insurer for such
services.

(e)(1) No person shall accept any commission, service fee, brokerage
or other valuable consideration for selling, soliciting or negotiating
insurance in this state if that person is required to be licensed under
this article and is not so licensed.

(2) Renewal or other deferred commissions may be paid to a person or
other entity for selling, soliciting or negotiating insurance in this
state if the person or other entity was required to be licensed under
this article at the time of the sale, solicitation or negotiation and
was so licensed at that time.

(3) An insurer, fraternal benefit society, health maintenance
organization or licensed insurance producer may pay or assign
commissions, service fees, brokerages or other valuable consideration to
an insurance producer or to persons who do not sell, solicit or
negotiate a contract of insurance in this state, unless the payment
would violate any provision of this chapter.

(f) Every licensee shall notify the superintendent upon changing his,
her or its legal name. Except for an individual licensee's own legal
name, no licensee shall use any name, in conducting a business regulated
by this article that has not been previously approved by the
superintendent.

(g) Any person, firm, association or corporation who or that violates
this section shall be subject to a penalty not to exceed five hundred
dollars for each transaction, except as provided in paragraph two of
subsection (a) of this section.