N.Y. Insurance Law Section 2907
Revocation or suspension of a registration or license of a pharmacy benefit manager

(a)

The superintendent may revoke, or may suspend for a period the superintendent determines the registration or license of any pharmacy benefit manager if, after notice and hearing, the superintendent determines that the registrant or licensee or any member, principal, officer, director, or controlling person of the registrant or licensee, has:

(1)

violated any insurance laws, Public Health Law § 280-A (Pharmacy benefit managers)section two hundred eighty-a of the public health law or violated any regulation, subpoena or order of the superintendent or of another state’s insurance commissioner, or has violated any law in the course of his or her dealings in such capacity after such registration or license has been issued or renewed pursuant to this article;

(2)

provided materially incorrect, materially misleading, materially incomplete or materially untrue information in the registration or license application;

(3)

obtained or attempted to obtain a registration or license through misrepresentation or fraud;

(4)

(A) used fraudulent, coercive or dishonest practices; (B) demonstrated incompetence; (C) demonstrated untrustworthiness; or (D) demonstrated financial irresponsibility in the conduct of business in this state or elsewhere;

(5)

improperly withheld, misappropriated or converted any monies or properties received in the course of business in this state or elsewhere;

(6)

intentionally misrepresented the terms of an actual or proposed insurance contract;

(7)

admitted or been found to have committed any insurance unfair trade practice or fraud;

(8)

had a pharmacy benefit manager registration or license, or its equivalent, denied, suspended or revoked in any other state, province, district or territory;

(9)

failed to pay state income tax or comply with any administrative or court order directing payment of state income tax; or

(10)

ceased to meet the requirements for registration or licensure under this article.

(b)

Before revoking or suspending the registration or license of any pharmacy benefit manager pursuant to the provisions of this article, the superintendent shall give notice to the registrant or licensee and shall hold, or cause to be held, a hearing not less than ten days after the giving of such notice.

(c)

If a registration or license pursuant to the provisions of this article is revoked or suspended by the superintendent, then the superintendent shall forthwith give notice to the registrant or licensee.

(d)

The revocation or suspension of any registration or license pursuant to the provisions of this article shall terminate forthwith such registration or license and the authority conferred thereby. For good cause shown, the superintendent may delay the effective date of a revocation or suspension to permit the registrant or licensee to satisfy some or all of its contractual obligations to perform pharmacy benefit management services in the state.

(e)

(1) No individual, corporation, firm or association whose registration or license as a pharmacy benefit manager has been revoked pursuant to subsection (a) of this section, and no firm or association of which such individual is a member, and no corporation of which such individual is an officer or director, and no controlling person of the registrant or licensee shall be entitled to obtain any registration or license under the provisions of this article for a minimum period of one year after such revocation, or, if such revocation be judicially reviewed, for a minimum period of one year after the final determination thereof affirming the action of the superintendent in revoking such license.

(2)

If any such registration or license held by a firm, association or corporation be revoked, no member of such firm or association and no officer or director of such corporation or any controlling person of the registrant or licensee shall be entitled to obtain any registration or license under this article for the same period of time, unless the superintendent determines, after notice and hearing, that such member, officer or director was not personally at fault in the matter on account of which such registration or license was revoked.

(f)

If any corporation, firm, association or person aggrieved shall file with the superintendent a verified complaint setting forth facts tending to show sufficient ground for the revocation or suspension of any pharmacy benefit manager’s registration or license, and the superintendent finds the complaint credible, then the superintendent shall, after notice and a hearing, determine whether such registration or license shall be suspended or revoked.

(g)

The superintendent shall retain the authority to enforce the provisions of and impose any penalty or remedy authorized by this chapter against any person or entity who is under investigation for or charged with a violation of this chapter, even if the person’s or entity’s registration or license has been surrendered, or has expired or has lapsed by operation of law.

(h)

A registrant or licensee subject to this article shall report to the superintendent any administrative action taken against the registrant or licensee in another jurisdiction or by another governmental agency in this state within thirty days of the final disposition of the matter. This report shall include a copy of the order, consent to order or other relevant legal documents.

(i)

Within thirty days of the initial pretrial hearing date, a registrant or licensee subject to this article shall report to the superintendent any criminal prosecution of the registrant or licensee taken in any jurisdiction. The report shall include a copy of the initial complaint filed, the order resulting from the hearing and any other relevant legal documents.

Source: Section 2907 — Revocation or suspension of a registration or license of a pharmacy benefit manager, (updated Mar. 4, 2022; accessed Mar. 9, 2025).

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Accessed:
Mar. 9, 2025

Last modified:
Mar. 4, 2022

§ 2907’s source at

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