NY S03539

Amends Insurance Law Section 1209(f) to allow domestic mutual insurance corporations to enter into commission agreements with officers, directors, or firms/corporations in which they have pecuniary interests, subject to superintendent approval.

Superintendent may permit such agreements only if: (1) policyholders will not be adversely affected; (2) the officer or director has no direct pecuniary interest in the insurance producer; and (3) any benefit to the officer or director is not material relative to the corporation's overall premium volume.

Approved agreements are subject to annual review by the superintendent, who may revoke approval if the agreement no longer conforms to the law's requirements.

Exempts domestic mutual insurance companies organized before January 1, 1940 for marine protection and indemnity insurance from these restrictions.

Takes effect immediately upon enactment.