New York Laws
Article 23 - Property/casualty Insurance Rates
2324 - Rebating and Discrimination.

(b) Within the meaning of subsection (a) hereof, the sharing of a
commission with the insured shall be deemed to include any case in which
a licensed insurance agent or a licensed insurance broker which is a
subsidiary corporation of, or a corporation affiliated with, any
corporation insured, received commissions for the negotiation or
procurement of any policy or contract of insurance for the insured.
(c) This section shall not prohibit any insurer from equitably
distributing to its policyholders dividends payable from surplus on
earned premiums, nor prohibit the return at any time during the term or
at the termination of the contract of insurance of dividends, savings or
the unused or unabsorbed portion of premiums and premium deposits to
policyholders of a mutual insurer or to subscribers of a reciprocal
insurer, nor prohibit any insurer or insurance agent from paying
commissions to a licensed insurance broker for negotiating a policy or
contract of insurance, nor prohibit any licensed insurance broker from
sharing or dividing a commission earned or received by him with any
other licensed insurance broker or brokers who shall have aided him in
respect to the insurance for the negotiation of which the commission has
been earned or paid.
(d) This section shall not prohibit the making of temporary contracts
of insurance, either by temporary binders or other memoranda, if the
premium applicable to the insurance shall be due and shall be paid for
the time during which the insurance is in force by virtue of the
temporary contract.
(e) This section shall not apply to any policy or contract of
reinsurance nor to any contract or policy of life insurance, accident
insurance or health insurance which is subject to the provisions of
section four thousand two hundred twenty-four of this chapter, nor to
any contract or policy of marine insurance, other than contracts or
policies of automobile insurance, or of marine protection and indemnity
insurance, nor to any insurance contract, or rate of insurance in

connection with any insurance contract either against loss or damage to,
or legal liability in connection with, any property located wholly
outside of this state or any activity carried on outside of this state
or any motor vehicle or aircraft principally garaged and used outside of
this state.
(f) Any person or corporation violating the provisions of this section
shall, in addition to all other penalties provided by law, pay to the
people of this state as a penalty the sum of five hundred dollars for
each such violation.

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