DLJ Insurance Group
New Member
- Jurisdiction
- New York
Does anyone know if there is a statute of limitation if an insurer violated insurance law in the state of New York?
-
Welcome to our legal community! Click here or the create new topic button to ask a question and receive answers and comments from our friendly and helpful legal community.
Articles that answer frequent legal questions are in our Law Guide. Important legal news is reported in The Law JournalYou can find a lawyer near you in the Lawyer Directory. If you know that you need to hire an attorney, you can submit a case review from a lawyer.
NY Insurance law violations - Statute of limitations
- Thread Starter DLJ Insurance Group
- Start date
adjusterjack
Super Moderator
What insurer?
What violation?
What law?
Provide details and I may be able to find it for you.
Does this have anything to do with last year's post?
NY Insurance Law regarding terminations of insurance agents and brokers · TheLaw.com
If it does, I'll revive the thread and add the details to it.
If it's something new, provide details.
What violation?
What law?
Provide details and I may be able to find it for you.
Does this have anything to do with last year's post?
NY Insurance Law regarding terminations of insurance agents and brokers · TheLaw.com
If it does, I'll revive the thread and add the details to it.
If it's something new, provide details.
zddoodah
Well-Known Member
There are statutes of limitations for virtually every civil claim.
DLJ Insurance Group
New Member
Hello, thank you for responding. Yes, this is regarding last years post. My Cousin was heavily filed by NYS. The insurer was State Farm. She wants to make a complaint to the NYS Insurance Dept. for not sending out the termination notice within the required time frame in violation of NY Insurance law 2112D. State Farm should take some responsibility for this. There was reason why this law was created. Any advice would be appreciated.
adjusterjack
Super Moderator
Answer the following:
What was the EXACT date she was let go?
What was the EXACT date of the letter?
Explain to me what an "appointment" is and what the consequences are for having the appointment terminated.
Years ago, in Arizona I had to be appointed by an insurance company in order to stay licensed. During my down years I had to finagle something with friends at insurance agencies where I could list one of their companies as my appointment. After a few years Arizona did away with that requirement, and I was able to keep my licenses as long as I paid the renewal fees.
Did losing her "appointment" also mean that she lost her insurance license? Or does she still have her insurance license?
When you've answered all those questions I may have more to say.
What was the EXACT date she was let go?
What was the EXACT date of the letter?
Explain to me what an "appointment" is and what the consequences are for having the appointment terminated.
Years ago, in Arizona I had to be appointed by an insurance company in order to stay licensed. During my down years I had to finagle something with friends at insurance agencies where I could list one of their companies as my appointment. After a few years Arizona did away with that requirement, and I was able to keep my licenses as long as I paid the renewal fees.
Did losing her "appointment" also mean that she lost her insurance license? Or does she still have her insurance license?
When you've answered all those questions I may have more to say.
DLJ Insurance Group
New Member
She was laid off from the agency on 05/18/2020. The termination for cause letter was dated 06/03/2020. The thing is that this letter was never mailed to her from State Farm. She told the insurance department that she never received a copy of the termination letter. Six months later the insurance department provided a copy of the State Farm letter to her. The letter had her wrong address on it. In responding to the insurance department, she explained all of this to them. They somehow did not believe her. She even contacted State Farm and they told her that they do not have proof that this letter was even mailed. If they sent it certified mail, returned receipt as required by insurance law, they should have proof of mailing.
In order to place business with an insurance company, an agent has to get appointed. This means you have to submit an application, they do a background check, product training, etc.
With or without cause, your appointment can be terminated. If you do not have at least one active
appointment, your insurance license becomes temporarily inactive until you pick up another appointment.
My cousin still has her license and is representing another carrier. She agreed to pay the fine from the insurance department to move on from this. The reason for her termination was for running too many consumer reports on automobile insurance quotes. State Farm suspected rate manipulation.
She feels like even though she accepted liability for what she was being accused of, State Farm should take some responsibility for not notifying her of this termination for cause in the beginning.
That is why she was asking me if it was too late to file a separate complaint to the insurance department about this State Farm insurance violation.
In order to place business with an insurance company, an agent has to get appointed. This means you have to submit an application, they do a background check, product training, etc.
With or without cause, your appointment can be terminated. If you do not have at least one active
appointment, your insurance license becomes temporarily inactive until you pick up another appointment.
My cousin still has her license and is representing another carrier. She agreed to pay the fine from the insurance department to move on from this. The reason for her termination was for running too many consumer reports on automobile insurance quotes. State Farm suspected rate manipulation.
She feels like even though she accepted liability for what she was being accused of, State Farm should take some responsibility for not notifying her of this termination for cause in the beginning.
That is why she was asking me if it was too late to file a separate complaint to the insurance department about this State Farm insurance violation.
Zigner
Well-Known Member
Sounds to me like she admitted to what she was accused of. Lashing out for a perceived minor violation isn't likely to help her.
adjusterjack
Super Moderator
Well, you can bet that it's not going to.
I read the statute that you cited:
New York Insurance Law § 2112 (2021) - Certificate of Appointment of an Insurance Producer to Act as an Agent and Notice of Termination of an Insurance Producer. :: 2021 New York Laws :: US Codes and Statutes :: US Law :: Justia
There is no penalty in there to an insurance company for inadvertently getting it wrong (sent to wrong address). See (g)(1).
Nor is there anything in there with a time limit for "filing a complaint." She's free to do that at any time. Might make her feel good but it isn't going to get anybody at State Farm punished.
Your cousin is still licensed and working. Time for her to get over it.
army judge
Super Moderator
DLJ Insurance Group
New Member
Great, thank you so much for your honest opinion. What you are saying makes sense and you gave me the answer I was looking for. Kudos to you!
adjusterjack
Super Moderator
Happy to help.
Share this page
