The Office of General Counsel issued the following opinion on August 26, 2004, representing the position of the New York State Insurance Department.
Re: Non-Solicitation clause of a licensed life insurance agent's employment contract with another licensed life insurance agent
The inquirer is a licensed life insurance agent, the inquirer currently works for another licensed life insurance agent, and the inquirer plans to leave that employment. The inquirer's employment contract with that life insurance agent has a Non-Solicitation clause that is paraphrased: (1) following termination the employee will not solicit policyholders for a "period of one year" and (2) in the event that the "period of one year" conflicts with any statutory provision, the period permitted by that statute will apply. The inquirer asks whether there is any statute that conflicts with the "period of one year" provided in the inquirer's employment contract with the life insurance agent.
There is no New York statute that regulates the time period of a Non-Solicitation clause.
For further information one may contact Senior Attorney Robert Freedman at the New York City Office.