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 December 14, 2001, representing the position of the New York State Insurance Department.

RE: Sharing Commissions Between Life/Health Insurance Agents.

Question Presented:

Under the New York Insurance Law, must life/health insurance agents represent the same insurer in order to share commissions?

Conclusion:

N. Y. Ins. Law § 2114(a)(2) and (3) (McKinney 2000) provide that agents must represent the same insurer in order to share life or accident and health commissions.

Facts:

None presented.

Analysis:

N. Y. Ins. Law § 2114(a)(2) (McKinney 2000) states: "No agent or other representative of any such life insurer [doing business in this state]. . . shall pay any commission or other compensation to any person for any services. . . , except to a licensed life insurance agent of such insurer. . ." (emphasis added). Similar language in N.Y. Ins. Law § 2114(a)(3) (McKinney 2000) concerns paying commissions to a licensed accident and health insurance agent in the same insurance company.

For further information, you may contact Associate Attorney Jeffrey A. Stonehill at the New York City office.