The New York Insurance Department’s Office of General Counsel issued 6 new advisory legal opinions between Sept. 7 and 14 and posted them to its Web site last week.
- Nothing in the Insurance Law bars a licensed insurance agent or broker from using an occupational title in addition to her title of insurance agent or broker. However, she should not use the title in a way that could mislead an insured or prospective insured.
- An insurance company’s requirement that a customer insure her primary home with the company as a condition of covering her second home violates the anti-rebating law because it is an inducement not specified in the policy covering the primary home.
- A managing general agent may not charge an insured an inspection fee even if the insurer the MGA represents requires the MGA to order and pay for the inspection.
- A so-called “lease deposit bond” is either surety insurance, financial guaranty insurance or both, but not residual value insurance.
- Interest on overdue no-fault benefit payments stops accruing on the date the claimant fails to commence a legal action within 30 days of the receipt of a denial of claim form; it does not resume accruing until the claimant actually commences the action.
- Regulation 194 (the producer compensation transparency regulation) does not require an insurance broker to provide information about his compensation if an insured requests it 45 days before or 90 days after the renewal of the policy. However, he may find it desirable to provide the information to a renewing insured at the insured’s request regardless of the time of the insured’s request. The broker must disclose certain general compensation information to a new insurance purchaser without the purchaser asking. The regulation takes effect on Jan. 1, 2011.
All OGC opinions issued since 2000 are available on the department’s Web site.