Rating 4, 5 (the date the agent delivered the policy, collected the initial premium, and obtained a good health statement from the insured · The applicant has the right to receive. An insurance broker must accept an insured's premium payment when it's best for the insured to do so. While Section 2121 does not require an insurance broker to accept an insured's premium payment, an insurance broker must do so when it is in the insured's best interest. Under the New York Auto Insurance Plan Rules (200), an insurance agent represents the insured and, therefore, acts as an insurance broker.
An insurance agent cannot do so, except when acting as a producer of (and only with respect to) an assigned risk auto insurance policy, and in such a case must do so in accordance with N. A number of questions were raised that arose from the agency's practices, including whether the agency can use a credit to resend payment of the premium to an insurance company, instead of forwarding the payment by means of a check drawn up in the agency's premium account. The Office of General Counsel issued the following informal opinion on 4 January 2002, representing the position of the New York State Department of Insurance. § 2120 (McKinney 2000) imposes a fiduciary duty on insurance agents and brokers with respect to funds received or collected as insurance agents and brokers, including, but not limited to, policy premiums.
Therefore, in order for the insurance agent or broker to pay the credit card company by check, the agent or broker will need to deposit the withdrawn funds into their own operating account and issue the check to the credit card company in that operating account. By definition, an insurance agent acts on behalf of the insurer he represents and, as such, is given apparent authority to collect a policyholder's premium payment. If the insurance agent or broker deposits the premium payment into your premium account, when the deposit (if made by check or money order) has been settled and the insurer has received the credit card payment, the insurance agent or broker can make a withdrawal from your premium account to pay the card company of credit. The principal stated that the credit card, which will name the agency as the cardholder, will be used only for the purpose of paying insured premiums to their insurers.
There is one exception to this general rule, and that is with respect to policies placed in the New York Auto Insurance Plan. When the use of the credit card makes the insurance agent or broker qualify for certain benefits provided by the credit card issuer, such as free air mileage, the insurance agent or broker can take advantage of those benefits because the benefits are derived from a separate and separate agreement between the the issuer of the credit card and the insurance agent or broker as the cardholder, and not of the insurance transaction.