N.Y. Laws » CHAPTER Insurance / ARTICLE Agents, Brokers, Adjusters, Consultants and Intermediaries
New York Consolidated Laws

N.Y. Insurance Law § 2120 (2026)

Fiduciary capacity of insurance agents, title insurance agents, insurance brokers and reinsurance intermediaries

✓ current as of May 2026
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§ 2120. Fiduciary capacity of insurance agents, title insurance
agents, insurance brokers and reinsurance intermediaries.
  (a) Every insurance agent, title insurance agent, and insurance broker
acting as such in this state shall be responsible in a fiduciary
capacity for all funds received or collected as insurance agent or
insurance broker, and shall not, without the express consent of his, her
or its principal, mingle any such funds with his, her or its own funds
or with funds held by him, her or it in any other capacity.
  (b) Every reinsurance intermediary acting as such in this state shall
be responsible, in a fiduciary capacity for all funds received or
collected in such capacity, and shall not, without the express consent
of his or its principal or principals, mingle any such funds with his or
its own funds or with funds held by him or it in any other capacity.
  (c) This section shall not require any such insurance agent, title
insurance agent, insurance broker or reinsurance intermediary to
maintain a separate bank deposit for the funds of each such principal,
if and as long as the funds so held for each such principal are
reasonably ascertainable from the books of account and records of such
agent, broker or reinsurance intermediary, as the case may be.
  (d) A retail insurance producer who violates paragraph (a) of
subdivision two of section five hundred seventy-seven-a of the banking
law shall be liable for actual damages for the failure to notify, in
writing, the premium finance agency of the information required pursuant
to such paragraph (a).
Notes of Decisions
Cited in 8 cases, 1987–2005 · leading case: K. Bell & Assocs., Inc. v. Lloyd's Underwriters, 97 F.3d 632 (2d Cir. 1996).
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K. Bell & Assocs., Inc. v. Lloyd's Underwriters, 97 F.3d 632 (2d Cir. 1996). · cites it 2× “Insurance Law § 2120 imposes a fiduciary duty upon an intermediary to be responsible “for all funds received or collected in such capacity,” and the funds must be held so that the principal’s funds are “reasonably ascertainable” from the books and records of the agent.”
Tigue v. Com. Life Ins., 219 A.D.2d 820 (N.Y. App. Div. 1995). “The issue in dispute is what effect termination of the agency agreements had on the agency’s right to receive further renewal commissions.”
Evvtex Co. v. Hartley Cooper Assocs. Ltd., 911 F. Supp. 732 (S.D.N.Y. 1996). “N.Y.Ins.Law § 2120(a) (McKinney 1995). In the broker’s fiduciary capacity, it holds premiums collected by its insured to be forwarded to the insurance company as an agent of the insurer.”
Meadowbrook-Richman, Inc. v. Associated Fin. Corp., 325 F. Supp. 2d 341 (S.D.N.Y. 2004). “]” N.Y. Ins. Law § 2120 (a). However, the AFC Parties did not establish at trial that Rich-man or MRI commingled funds in violation of § 2120(a).”
Sheehan Carriers, Inc. v. James H. Buckley & Sons, Inc., 672 F. Supp. 759 (S.D.N.Y. 1987). “N.Y. Ins. Law § 2120 (a) (McKinney 1985), states: Every insurance agent and every insurance broker acting as such in this state shall be responsible in a fiduciary capacity for all funds received or collected as insurance agent or insurance broker, and shall not, without the…”
Rosen v. Levin, 259 A.D.2d 395 (N.Y. App. Div. 1999). “21) by filing excess line affidavits on behalf *396 of a producing broker unlicénced to procure excess line coverage; that petitioner violated Insurance Law § 2118 (c) and Insurance Department Regulation 41 by failing to maintain “a complete and separate record” regarding excess…”
Great N. Assocs., Inc. v. Curiale, 189 A.D.2d 944 (N.Y. App. Div. 1993). “After a three-day examination of the records of Great Northern and its two affiliated insurance agencies, citation was issued to all three agencies and to Kayo charging incompetency and/or untrustworthiness to act as insurance agents and brokers and/or consultants within the…”
East Coast Mgmt. Ltd. v. Genatt Assocs., Inc., 9 Misc. 3d 440 (N.Y. Sup. Ct. 2005). “(Insurance Law § 2120.) As to the plaintiff’s request for summary judgment on the second cause of action, seeking a declaratory judgment, that application is also granted.”
N.Y. Insurance Law § 2120(a): 1 case
Evvtex Co. v. Hartley Cooper Assocs. Ltd., 911 F. Supp. 732 (S.D.N.Y. 1996). “N.Y.Ins.Law § 2120(a) (McKinney 1995). In the broker’s fiduciary capacity, it holds premiums collected by its insured to be forwarded to the insurance company as an agent of the insurer.”
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