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This entry was published on 2014-10-03
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SECTION 2120
Fiduciary capacity of insurance agents, title insurance agents, insurance brokers and reinsurance intermediaries
Insurance (ISC) CHAPTER 28, ARTICLE 21
§ 2120. Fiduciary capacity of insurance agents, title insurance
agents, insurance brokers and reinsurance intermediaries.

(a) Every insurance agent, title insurance agent, and 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, her
or its principal, mingle any such funds with his, her or its own funds
or with funds held by him, her 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 insurance agent, title
insurance agent, insurance 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).