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This entry was published on 2014-10-03
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SECTION 2128
Commission and fee sharing prohibited
Insurance (ISC) CHAPTER 28, ARTICLE 21
§ 2128. Commission and fee sharing prohibited. (a) Notwithstanding the
provisions of sections two thousand three hundred twenty-four and four
thousand two hundred twenty-four of this chapter, no licensee subject to
this article shall receive any commissions or fees or shares thereof in
connection with insurance coverages placed for or insurance services
rendered to the state, its agencies and departments, public benefit
corporations, municipalities and other governmental subdivisions in this
state, unless such licensee actually placed insurance coverages on
behalf of or rendered insurance services to the state, its agencies and
departments, public benefit corporations, municipalities and other
governmental subdivisions in this state.

(b) The superintendent shall, by regulation, require licensees subject
to this article to file disclosure statements with the department of
financial services and the most senior official of the governmental unit
involved, with respect to any insurance coverages placed for or
insurance services rendered to the state, its agencies and departments,
public benefit corporations, municipalities and other governmental
subdivisions in this state, except that neither a title insurance
corporation nor a title insurance agent shall be required to file a
disclosure statement if an industrial development agency, state of New
York mortgage agency or its successor, or any similar type of entity, is
the named insured under the policy and is a mortgagee with respect to
the property insured.