N.Y. Comp. Codes R. & Regs. tit. 12 § 317.17
Group administrators, trustees of the group, and insurance brokers and consultants shall make a good faith effort to fully disclose to prospective group members both the rights and responsibilities of participating in the group. No party shall make a material misrepresentation or omission of a material fact in connection with the solicitation of a prospective group member, or engage in any practices prohibited by section 2403 of the Insurance Law. No group shall pay commissions to or otherwise engage in marketing or sales relationships with insurance brokers who have had their licenses suspended or revoked by the Insurance Department. The trustees of a group shall require all brokers to comply with section 2120 of the Insurance Law.
N.Y. Comp. Codes R. & Regs. Tit. 12 § 317.17