Selling Out of State Company in NY

[Newby]

I was checking out the complaints on a local financial advisor's record on the FINRA website last week. He paid a settlement of $30,000 when someone complained about a policy he had sold them. They didn't agree with the original complaint but did discover that he sold a Kentucky resident an Indiana product on Indiana forms but signed in Kentucky.

From my understanding even though I'm on the state lines and have offices in both states (10-miles from each other) it would be a violation for me to get anyone to cross state lines for the sole purpose of buying an insurance policy.

Sometimes I get Kentucky residents that want to meet at my Indiana office because they are going to a mall or a restaurant over here anyway. I usually talk them out of it. If for no other reason, the Indiana state guarantee funds doesn't cover you if you don't live in Indiana.

 

[CaptiveBroke(r)]

You should know the answer to your question if you are a licensed agent in NY.

You are not only facing possible revocation of your license, more importantly, you are placing your customers in adverse situations where their claim may not be paid due to a material misrepresentation on the application.

If your looking for an FE company that does business in NY and NJ and does not require an agent witness, you can PM me for details.

Otherwise, I believe you are asking for big problems if you continue this way of conducting business.

 

[Josh]

Are you a NJ resident agent? Do you have a physical office in NJ?

Doesn't matter. The act of soliciting the sale and getting them to come to the office is going to mean it has to be sold the product of the state it was marketed in.

If on the other hand folks truly walk in to your office while visiting and want to buy something, that's a different story.

 

[Tahoe Ray]

Doesn't matter. The act of soliciting the sale and getting them to come to the office is going to mean it has to be sold the product of the state it was marketed in.

If on the other hand folks truly walk in to your office while visiting and want to buy something, that's a different story.

That's why I asked the question. Without a physical office and the client coming to that office of their own volition, it is asking for trouble.

Frankly, even this line of thinking is bad....like I said in an earlier post, OP should walk away.

 

[Josh]

The OP may want to spend some time looking at the discpilinary actions the NYS DFS has taken.

Disciplinary Actions

Below are just some of the ones from the
http://www.dfs.ny.gov/insurance/da/2011--2020/da20130102.pdf page.


LICENSEE ADDRESS PENALTY
(agents name removed for posting)
(Agent)
3929 Amboy Road
Staten Island, NY 10308
$9,100 fine
Respondent solicited, negotiated and/or delivered in the State of New York annuity contracts
issued by an unauthorized insurer and otherwise aided and facilitated an unauthorized insurer
in doing an insurance business in the State of New York. [Stipulation approved
October 12, 2012.]

LICENSEE ADDRESS PENALTY
(agents name removed for posting)
(Agent)
137 Montague Street
Brooklyn, NY 11021
$2,000 fine
Respondent solicited, negotiated and/or delivered in the State of New York annuity contracts
issued by an unauthorized insurer, and otherwise aided and facilitated the aforesaid
unauthorized insurer in doing an insurance business in the State of New York. [Stipulation
approved October 25, 2012

LICENSEE ADDRESS PENALTY
(agents name removed for posting)
(Agent)
596 Annadale Road
Staten Island, NY 10312
$63,000 fine
Respondent solicited, negotiated and/or delivered in the State of New York annuity contracts
issued by an unauthorized insurer in the State of New York, and otherwise aided and
facilitated an unauthorized insurer in doing an insurance business in the State of New York.
[Stipulation approved October 18, 2012.]

LICENSEE ADDRESS PENALTY
(agents name removed for posting)
(Agent)
1111 Marcus Avenue
Lake Success, NY 11042
$750 fine
Respondent solicited, negotiated and/or delivered in the State of New York a long term care
insurance policy, to an insured, issued by an unauthorized insurer, and otherwise aided and
facilitated an unauthorized insurer in doing an insurance business in the State of New York.
[Stipulation approved November 19, 2012

LICENSEE ADDRESS PENALTY
(agents name removed for posting)
(Agent)
2028 West 25th Street
Erie, PA 16502
$4,500 fine
Respondent solicited, negotiated and/or delivered in the State of New York annuity contracts
issued by an unauthorized insurer, and otherwise aided and facilitated the aforesaid
unauthorized insurer in doing an insurance business in the State of New York. [Stipulation
approved September 6, 2012.]

 

[Iwillpay]

The OP may want to spend some time looking at the discpilinary actions the NYS DFS has taken.

Disciplinary Actions

Below are just some of the ones from the
http://www.dfs.ny.gov/insurance/da/2011--2020/da20130102.pdf page.


LICENSEE ADDRESS PENALTY
(agents name removed for posting)
(Agent)
3929 Amboy Road
Staten Island, NY 10308
$9,100 fine
Respondent solicited, negotiated and/or delivered in the State of New York annuity contracts
issued by an unauthorized insurer and otherwise aided and facilitated an unauthorized insurer
in doing an insurance business in the State of New York. [Stipulation approved
October 12, 2012.]

LICENSEE ADDRESS PENALTY
(agents name removed for posting)
(Agent)
137 Montague Street
Brooklyn, NY 11021
$2,000 fine
Respondent solicited, negotiated and/or delivered in the State of New York annuity contracts
issued by an unauthorized insurer, and otherwise aided and facilitated the aforesaid
unauthorized insurer in doing an insurance business in the State of New York. [Stipulation
approved October 25, 2012

LICENSEE ADDRESS PENALTY
(agents name removed for posting)
(Agent)
596 Annadale Road
Staten Island, NY 10312
$63,000 fine
Respondent solicited, negotiated and/or delivered in the State of New York annuity contracts
issued by an unauthorized insurer in the State of New York, and otherwise aided and
facilitated an unauthorized insurer in doing an insurance business in the State of New York.
[Stipulation approved October 18, 2012.]

LICENSEE ADDRESS PENALTY
(agents name removed for posting)
(Agent)
1111 Marcus Avenue
Lake Success, NY 11042
$750 fine
Respondent solicited, negotiated and/or delivered in the State of New York a long term care
insurance policy, to an insured, issued by an unauthorized insurer, and otherwise aided and
facilitated an unauthorized insurer in doing an insurance business in the State of New York.
[Stipulation approved November 19, 2012

LICENSEE ADDRESS PENALTY
(agents name removed for posting)
(Agent)
2028 West 25th Street
Erie, PA 16502
$4,500 fine
Respondent solicited, negotiated and/or delivered in the State of New York annuity contracts
issued by an unauthorized insurer, and otherwise aided and facilitated the aforesaid
unauthorized insurer in doing an insurance business in the State of New York. [Stipulation
approved September 6, 2012.]

Very good post for the subject .

 

[Jack B]

The OP may want to spend some time looking at the discpilinary actions the NYS DFS has taken.

Disciplinary Actions

Below are just some of the ones from the
http://www.dfs.ny.gov/insurance/da/2011--2020/da20130102.pdf page.


LICENSEE ADDRESS PENALTY
(agents name removed for posting)
(Agent)
3929 Amboy Road
Staten Island, NY 10308
$9,100 fine
Respondent solicited, negotiated and/or delivered in the State of New York annuity contracts
issued by an unauthorized insurer and otherwise aided and facilitated an unauthorized insurer
in doing an insurance business in the State of New York. [Stipulation approved
October 12, 2012.]

LICENSEE ADDRESS PENALTY
(agents name removed for posting)
(Agent)
137 Montague Street
Brooklyn, NY 11021
$2,000 fine
Respondent solicited, negotiated and/or delivered in the State of New York annuity contracts
issued by an unauthorized insurer, and otherwise aided and facilitated the aforesaid
unauthorized insurer in doing an insurance business in the State of New York. [Stipulation
approved October 25, 2012

LICENSEE ADDRESS PENALTY
(agents name removed for posting)
(Agent)
596 Annadale Road
Staten Island, NY 10312
$63,000 fine
Respondent solicited, negotiated and/or delivered in the State of New York annuity contracts
issued by an unauthorized insurer in the State of New York, and otherwise aided and
facilitated an unauthorized insurer in doing an insurance business in the State of New York.
[Stipulation approved October 18, 2012.]

LICENSEE ADDRESS PENALTY
(agents name removed for posting)
(Agent)
1111 Marcus Avenue
Lake Success, NY 11042
$750 fine
Respondent solicited, negotiated and/or delivered in the State of New York a long term care
insurance policy, to an insured, issued by an unauthorized insurer, and otherwise aided and
facilitated an unauthorized insurer in doing an insurance business in the State of New York.
[Stipulation approved November 19, 2012

LICENSEE ADDRESS PENALTY
(agents name removed for posting)
(Agent)
2028 West 25th Street
Erie, PA 16502
$4,500 fine
Respondent solicited, negotiated and/or delivered in the State of New York annuity contracts
issued by an unauthorized insurer, and otherwise aided and facilitated the aforesaid
unauthorized insurer in doing an insurance business in the State of New York. [Stipulation
approved September 6, 2012.]

Thanks, got the message.

Interesting though, none of the penalties are for Life insurance, they are for annuities & LTC.

 

[Josh]

Thanks, got the message.

Interesting though, none of the penalties are for Life insurance, they are for annuities & LTC.

Read through the links and you'll find them with life too. There are TONS of agents that get burnt for it.

 

[Tahoe Ray]

Thanks, got the message.

Interesting though, none of the penalties are for Life insurance, they are for annuities & LTC.

Annuities are definitely on the radar and fined more frequently but I think that has to do with instances of abuse as opposed to the severity of the infraction.

I'm glad that you got the point. I personally know more than a few agents that got caught up with these issues. The fines are large, the penalties severe, and it's just not worth it.

 

[Norwayguy]

Thanks, got the message.

Interesting though, none of the penalties are for Life insurance, they are for annuities & LTC.

Thats is a scary response...You asked if you can get in trouble and everyone is telling you that it is illegal and unethical and once presented evidence that people get burned for doing exactly what you suggest your response is none of these is for life insurance.