P&CNew Yorkeasy
A NY-licensed property/casualty producer offers a prospective auto-insurance applicant a $100 gift card if she binds the policy through him. Which NY Insurance Law section does this most directly violate?
NY Ins. Law § 2324 (anti-rebating for P&C)
BNY Ins. Law § 3420 (compulsory liability)
CNY Ins. Law § 2118 (excess line brokers)
DNY Ins. Law § 6303 (Free Trade Zone eligibility)
Why this is the answer
NY Ins. Law § 2324 is the P&C anti-rebating statute. It prohibits a producer, insurer, or agent from offering any valuable consideration outside the filed rate as an inducement to buy a P&C policy. The $100 gift card is exactly the kind of side payment § 2324 targets. Section 4224 is the analogous prohibition for life and accident/health business. The Superintendent may impose fines, license suspension, or revocation under § 2110. A safe harbor exists for incidental promotional items of de minimis value, but $100 is well above that line.
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