Despite the clarity of New York State Insurance Law I have been made aware, from plaintiffs , that on multiple occasions structured settlement brokers are doing that which is is expressly prohibited by Article 77. What is worse and what regulators need to be made aware of is that this is occurring when lower rated companies are being pushed. This is exactly the reason why such an advertising prohibition exists in New York and most other states. Last January, this author obtained a legal opinion from the New York State Insurance Department to answer questions raised concerning an NSSTA brochure which were prepared by NSSTA for its members to use in the solicitation of insurance.
We recently wrote about Bryan Milner's efforts to promote the North Carolina equivalent despite a similar prohibition there. Unless and until there is a law that exempts structured settlements from such prohibition you should be following the rules. I trust you will all be guided accordingly.
I don't know whether or not the property and casualty companies retaining some of the brokers in question know of the ILLEGAL sales pitch but I can assure you the directors of those programs will be informed. I don't see how they can afford having these people on their approved lists, representing their companies, potentially exposing their companies.
If you are not going to follow the law I suggest you prepare yourself to be made an example of. You will be exposed.
DON'T GET CAUGHT WITH YOUR PANTS DOWN!
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