New York State Seal
STATE OF NEW YORK
INSURANCE DEPARTMENT
25 BEAVER STREET
NEW YORK, NEW YORK 10004

The Office of General Counsel issued the following informal opinion on September 5, 2000, representing the position of the New York State Insurance Department.

RE: Purchase of Customer Mailing Lists from Non-Licensees / Non-Resident Agent and Non-Resident Broker Solicitation

Questions Presented:

1) Does the New York Insurance Law prohibit a New York State licensed non-resident agent or non-resident broker from purchasing customer mailing lists from non-licensees when such purchase is made for the purpose of soliciting insurance?

2) Does the New York Insurance Law prohibit a New York State licensed non-resident agent or non-resident broker from soliciting insurance in New York State from outside the state?

Conclusions:

1) The New York Insurance Law does not prohibit a New York State licensed non-resident agent or non-resident broker from purchasing customer mailing lists from non-licensees when such purchase is made for the purpose of soliciting insurance.

2) The New York Insurance Law does not prohibit a New York State licensed non-resident agent or non-resident broker from soliciting insurance in New York State from outside the state provided that the insurance solicited is provided by a New York State authorized insurer.

Facts:

An out-of-state insurance agency proposed to purchase names of customers from automobile dealers located in New York State for the purpose of soliciting those New York State residents as insurance customers. The agency further proposed to have New York State licensed non-resident agents and/or non-resident brokers conduct such solicitation from a call center located in St. Louis, MO. The agency inquired whether the New York Insurance Law would prohibit its proposed activities.

Conclusion:

The New York Insurance Law does not prohibit New York State licensed non-resident agents and non-resident brokers from purchasing lists of customers’ names from automobile dealers. Nor does the Insurance Law prohibit New York State licensed non-resident agents and non-resident brokers from soliciting insurance in New York State from outside the state. The very purpose of a non-resident license is to enable such licensee located outside New York State to conduct insurance business in New York State. However, no agent or broker, whether a resident or non-resident licensee, may solicit insurance provided by an unauthorized insurer. N.Y. Ins. Law § 2117 (McKinney 1985 & Supp. 2000).

For further information you may contact Attorney, Sally A. Geisel at the New York City Office.