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 opinion on March 21, 2001 representing the position of the New York State Insurance Department.

Re: Production requirements by a licensed life insurance company for its licensed life insurance agents.

Question Presented:

Is there any New York State Insurance Law ("Insurance Law") prohibition against a licensed life insurance company requiring its licensed life insurance agents to sell a specified number of policies or a specified dollar amount of life insurance as a condition of employment?

Conclusion:

The Insurance Law does not prohibit production requirements by a licensed life insurance company for its licensed life insurance agents.

Facts:

No specific facts were provided.

Analysis:

There are no provisions in the Insurance Law or Insurance Department Regulations promulgated thereunder that address production requirements by a licensed life insurance company for its licensed insurance agents. N.Y. Ins. Law §4228 (McKinney 2000) regulates expense limitations related to certain life insurance and annuity business including compensation paid to licensed life insurance agents. However, N.Y. Ins Law §4228 (McKinney 2000) does not address production requirements by a licensed life insurance company for its licensed life insurance agents. Generally, life insurance companies are free to set the terms of employment with their agents, including imposition of minimum production requirements.

For further information you may contact Senior Attorney Robert Freedman at the New York City Office.