11, § 20.3 (1996) (Regulation 29) does not permit such action. ![]() However, the insurance agent or broker may not write a check on the premium account made payable directly to the credit card company because N.Y. However, as to assigned risk automobile insurance policies, an insurance agent or broker may not remit the premium to the insurer by credit card.Ĥ) If the insurance agent or broker deposits the premium payment into its premium account, when the deposit (if made by check or money order) has cleared, and the insurer has received the credit card payment, the insurance agent or broker may make a withdrawal from its premium account to pay the credit card company. ![]() Service fees relating to an assigned risk automobile insurance policy may be limited by § 21(C) of the Rules of New York Automobile Insurance Plan (2001).ģ) An insurance agent or broker that accepts a premium payment by an insured may forward the premium to the insurer by credit card where such credit card is used solely for the purpose of paying insureds premiums, if the insurer has agreed to accept remittance by credit card. An insurance agent may not do so, except when acting as a producer of (and only with respect to) an assigned risk automobile insurance policy, and in such case must do so in accordance with N.Y. A producer of an assigned risk automobile insurance policy must always take a premium payment proffered to it in an acceptable form from an insured pursuant to § 14(E)(2)(b) of the Rules of New York Automobile Insurance Plan (2001).Ģ) An insurance broker may charge a fee for the services involved in accepting premium payments where a written memorandum, signed by the insured and specifying the amount and purpose of such compensation, is obtained N.Y. An insurance agent is the representative of the insurer and must, therefore, accept premium payment from an insured. An insurance broker should accept an insureds premium payment where it is in the insureds best interests to do so. Law § 2121(a) (McKinney 2000), a premium payment made to an insurance broker is deemed to be payment made to the insurer. Re: Payment of Premium to Insurance Agent or Broker Questions Presented:ġ) Is an insurance agent or broker obliged to accept a premium payment from an insured, even if the insured agreed, as a condition of policy issuance, to pay its premium directly to the insurer?Ģ) May an insurance agent or broker charge a fee to an insured for forwarding a premium payment on to the insurer?ģ) May an insurance agent or broker that accepts a premium payment from an insured, in effect, "forward" the premium payment to the insurer by credit card, where such credit card is used solely for the purpose of paying insureds premiums?Ĥ) May the insurance agent or broker make a withdrawal from its premium account to pay the credit card bill?ĥ) Where the use of the credit card to forward insurance premiums to insurers results in the insurance agent or broker qualifying for certain benefits provided by the credit card issuer, such as free air mileage, may the insurance agent or broker take advantage of such benefits? Conclusions:ġ) Pursuant to N.Y. The Office of General Counsel issued the following informal opinion on January 4, 2002, representing the position of the New York State Insurance Department.
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