Life insurers and producers should stop trying to sell unapproved insurance policies and contracts to residents of New York state.
Mitchel Gennaoui and Michael Maffei, deputy assistants in the New York State Insurance Department, makes that point in a draft 2011 circular letter posted on the department website.
The New York department has found “several” cases of agents and brokers helping unauthorized insurers sell annuity contracts and life insurance policies to New York residents in New York, the officials write in the draft circular letter.
“In many instances, these producers submitted applications on behalf of New York residents that falsely stated that the transactions had taken place outside of New York, even though the producers in fact solicited applicants, completed applications, or delivered the policies or contracts in New York,” the officials write.
Unauthorized insurers issued policies and contracts to the applicants even though they knew or should have known about patterns of irregularities, the officials add.