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 July 29, 2002, representing the position of the New York State Insurance Department.

RE: New York Insurance Law requirements for a collection agency working on behalf of an insurer.

Questions Presented:

1. Does a collection agency need a license under the New York Insurance Law, to collect on behalf of an insurer, earned premiums owed to the insurer?

2. Does a collection agency need a license under the New York Insurance Law, to collect on behalf of an insurer, unpaid money owed to the insurer as a result of subrogation claims?

Conclusions:

1. The New York Insurance Law does not require a person to be licensed to collect earned premiums owed to an insurer.

2. The New York Insurance Law does not require a person to be licensed to collect subrogation fees owed to an insurer.

Facts:

A collection agency would like to collect, on behalf of insurance companies, money owed to such companies as a result of unpaid subrogation claims and earned premiums. The collection agency has inquired whether any license under the Insurance Law is required for such collections.

Analysis:

The New York Insurance Law does not require a person to be licensed to collect earned premiums owed to an insurer. The New York Insurance Law does not require a person to be licensed to collect subrogation fees owed to an insurer. This opinion is limited to licensing required under the Insurance Law and does not address any and all other applicable statutes with which collection agencies must comply.

For further information you may contact Senior Attorney Susan A. Dess at the New York City Office.