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?


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.


None presented.


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.