New York state insurance producers may have to accept cash premium payments if refusing the payments would hurt insureds.
Officials in the Office of General Counsel at the New York State Insurance Department have come to that conclusion in OGC Opinion Number 09-12-06.
Despite public belief to the contrary, "there is no federal statute mandating that a private business, a person or an organization must accept cash as payment for goods or services," officials note in the opinion, which was issued in response to a general inquiry.
"In the absence of an express prohibition, an insurance producer may refuse to accept cash premium payments from its clients," officials write. "However, an insurance producer should fully explain to an insured or potential insured any refusal to accept cash payments, preferably in writing."
In addition, "an insurance producer should not refuse a cash payment if the insured may be adversely impacted by imminent cancellation, non-renewal, or non-issuance of the insurance policy," officials write.
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