N.Y. Insurance Law Section 2120
Fiduciary capacity of insurance agents, title insurance agents, insurance brokers and reinsurance intermediaries

(a)

Every insurance agent, title insurance agent, and insurance broker acting as such in this state shall be responsible in a fiduciary capacity for all funds received or collected as insurance agent or insurance broker, and shall not, without the express consent of his, her or its principal, mingle any such funds with his, her or its own funds or with funds held by him, her or it in any other capacity.

(b)

Every reinsurance intermediary acting as such in this state shall be responsible, in a fiduciary capacity for all funds received or collected in such capacity, and shall not, without the express consent of his or its principal or principals, mingle any such funds with his or its own funds or with funds held by him or it in any other capacity.

(c)

This section shall not require any such insurance agent, title insurance agent, insurance broker or reinsurance intermediary to maintain a separate bank deposit for the funds of each such principal, if and as long as the funds so held for each such principal are reasonably ascertainable from the books of account and records of such agent, broker or reinsurance intermediary, as the case may be.

(d)

A retail insurance producer who violates paragraph (a) of subdivision two of Banking Law § 577-A (Premium finance agreements)section five hundred seventy-seven-a of the banking law shall be liable for actual damages for the failure to notify, in writing, the premium finance agency of the information required pursuant to such paragraph (a).

Source: Section 2120 — Fiduciary capacity of insurance agents, title insurance agents, insurance brokers and reinsurance intermediaries, https://www.­nysenate.­gov/legislation/laws/ISC/2120 (updated Oct. 3, 2014; accessed Dec. 6, 2025).

2101
Definitions 2102
Acting without a license 2103
Insurance agents 2104
Insurance brokers 2105
Excess line brokers 2106
Reinsurance intermediaries 2107
Insurance consultants 2108
Adjusters 2109
Agents and brokers 2110
Revocation or suspension of license of insurance producer, insurance consultant, adjuster or life settlement broker 2111
Revoked licensees 2112
Certificate of appointment of an insurance producer to act as an agent and notice of termination of an insurance producer 2113
Title insurance agent commissions 2114
Life, accident and health insurance agents 2115
Property/casualty insurance agents 2116
Insurance brokers 2117
Acting for or aiding unlicensed or unauthorized insurers or health maintenance organizations 2118
Excess line brokers 2119
Insurance agents, brokers, consultants, life settlement brokers, and title insurance agents 2120
Fiduciary capacity of insurance agents, title insurance agents, insurance brokers and reinsurance intermediaries 2121
Broker authorized to receive premium, when 2122
Advertising by insurance producers 2123
Misrepresentations, misleading statements and incomplete comparisons 2124
Stay or suspension of superintendent’s determination 2125
Marine insurance 2126
Impersonation at examinations prohibited 2127
Penalties for violations 2128
Commission and fee sharing prohibited 2129
Duty to have an agent or broker at each place of business 2130
Excess line association 2131
Limited license for rental vehicle companies, wireless communications equipment vendors and self-service storage companies 2132
Continuing education 2133
Forged insurance identification cards 2134
Change of address 2135
Administration of certain functions 2136
Reciprocity 2137
Life settlement brokers 2138
Health benefit exchange navigators 2139
Title insurance agents 2140
Restrictions on insurance producers procuring immigration bonds
Green check means up to date. Up to date

Verified:
Dec. 6, 2025

Last modified:
Oct. 3, 2014

§ 2120. Fiduciary capacity of insurance agents, title insurance agents, insurance brokers & reinsurance intermediaries's source at nysenate​.gov

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