N.Y. ISC Law § 2104 — New York Code / Act ISC / Article 21 / Section 2104
Insurance brokers; licensing
Status: in_force

§ 2104. Insurance brokers; licensing. (a) (1) The superintendent may\nissue an insurance broker's license to any individual, firm, association\nor corporation, hereinafter designated as "licensee," who or which is\ndeemed by him trustworthy and competent to act as a broker in such\nmanner as to safeguard the interests of the insured, and who or which is\notherwise qualified as herein required, and who or which has complied\nwith the prerequisites herein prescribed.\n  (2) The purpose of this section is to protect the public by requiring\nand maintaining professional standards of conduct on the part of all\ninsurance brokers acting as such within this state.\n  (b) (1) Such license shall confer upon the licensee authority to act\nin this state as insurance broker, and upon every natural person named\nas sub-licensee in such license authority to act in this state as\ninsurance broker in the name of and on behalf of such licensee, with\nrespect to the following lines of authority:\n  (A) life insurance, variable life and variable annuity products,\naccident and health insurance and sickness or any other line of\nauthority deemed to be similar by the superintendent, including for this\npurpose, health maintenance organization contracts and legal services\ninsurance; or\n  (B) any and every line of authority, except life insurance and\nvariable life and variable annuity products.\n  (2) A license issued to a corporation may name as sub-licensees only\nthe officers and directors of such corporation, and a license issued to\na firm or association may name as sub-licensees only the individual\nmembers of such firm or association. Each sub-licensee named in such\nlicense must be qualified to obtain a license as an insurance broker,\nand for each such sub-licensee a fee must be paid at the times and at\nthe rates hereinafter specified.\n  (3) The license shall contain the licensee's name, address, personal\nidentification number, the date of issuance, the licensee's lines of\nauthority, the expiration date and any other information the\nsuperintendent deems necessary.\n  (c) (1) Every individual applicant for such license and every proposed\nsub-licensee shall be of the age of eighteen years or over at the time\nof the issuance of such license. No individual shall be deemed qualified\nto obtain such license or to be named as sub-licensee therein unless he\nshall comply with the requirements of subparagraph (A), (B) or (C)\nfollowing:\n  (A) He shall have successfully completed a course or courses, approved\nas to method and content by the superintendent, covering the principal\nbranches of the insurance business and requiring, in the case of a\nlicense under subparagraph (B) of paragraph one of subsection (b) of\nthis section, not less than ninety hours, and in the case of a license\nunder subparagraph (A) of paragraph one of subsection (b) of this\nsection, not less than forty hours of classroom work or the equivalent\nthereof in correspondence work. Such course or courses either were given\nby a degree conferring college or university which has, when such course\nis taken by such individual, a curriculum or curricula registered with\nthe state education department, whether such course be given as a part\nof any such curriculum or separately, or were given by the The College\nof Insurance, or by any other institution which maintains equivalent\nstandards of instruction, which has been continuously in existence for\nnot less than five years prior to the taking of such course by such\nindividual, and which shall have been approved for such purpose by the\nsuperintendent.\n  (B) He shall have been regularly employed by an insurance company or\nan insurance agent or an insurance broker, for a period or periods\naggregating not less than one year during the three years next preceding\nthe date of application, in the case of a license under subparagraph (B)\nof paragraph one of subsection (b) of this section, in responsible\ninsurance duties relating to the underwriting or adjusting of losses in\nany one or more of the following branches of insurance: fire, marine,\nliability and workers' compensation, and fidelity and surety; in the\ncase of a license under subparagraph (A) of paragraph one of subsection\n(b) of this section in responsible insurance duties relating to the use\nof life insurance, accident and health insurance and annuity contracts\nin the design and administration of plans for estate conservation and\ndistribution, employee benefits and business continuation; and he shall\nsubmit with his application a statement subscribed and affirmed as true\nunder the penalties of perjury by such employer or employers stating\nfacts which show compliance with this requirement.\n  (C) He shall have been regularly employed by an insurance company or\nan insurance agent or an insurance broker, for a period or periods\naggregating not less than one year, during the three years next\npreceding the date of entrance into the service of the armed forces of\nthe United States or immediately following his discharge therefrom, in\nthe case of a license under subparagraph (B) of paragraph one of\nsubsection (b) of this section, in responsible insurance duties relating\nto the underwriting or adjusting of losses in any one or more of the\nfollowing branches of insurance: fire, marine, liability and workers'\ncompensation, and fidelity and surety; in the case of a license under\nsubparagraph (A) of paragraph one of subsection (b) of this section in\nresponsible insurance duties relating to the use of life insurance,\naccident and health insurance and annuity contracts in the design and\nadministration of plans for estate conservation and distribution,\nemployee benefits and business continuation; provided the application\nfor such license is filed within one year from the date of discharge;\nand he shall submit with his application a statement subscribed and\naffirmed as true under the penalties of perjury by such employer or\nemployers stating facts which show compliance with this requirement.\n  (2) The requirements of subparagraphs (A), (B) and (C) of paragraph\none hereof shall not apply to any non-resident insurance broker.\n  (d) (1) Before any such license shall be issued by the superintendent\nand before each renewal, there shall be filed in his office a written\napplication therefor by the proposed licensee and by each proposed\nsub-licensee. Such application shall be in the form or forms and\nsupplements prescribed by the superintendent and contain such\ninformation as he or she shall require and for each business entity, the\nsub-licensee or sub-licensees named in the application shall be\ndesignated responsible for the business entity's compliance with the\ninsurance laws, rules and regulations of this state. In connection with\nany such application the superintendent shall have power to examine\nunder oath any person who has or appears to have relevant information,\nand to make an examination of the books, records and affairs of any such\napplicant.\n  (2) The superintendent may require from every applicant and from every\nproposed sub-licensee, before issuing any such license or renewal\nlicense, a statement subscribed and affirmed by the applicant and\nproposed sub-licensee as true under the penalties of perjury as to the\nownership of any interest in an applicant firm, association or\ncorporation and as to facts indicating whether any applicant has been by\nreason of an existing license, if any, or will be by reason of the\nlicense applied for, receiving any benefit or advantage in violation of\nsection two thousand three hundred twenty-four of this chapter, and also\nas to such facts as he may deem pertinent to the requirements of this\nsubsection.\n  (3) The superintendent may refuse to issue a license or renewal\nlicense, as the case may be, to any applicant if he finds that such\napplicant has been or will be, as aforesaid, receiving any benefit or\nadvantage in violation of section two thousand three hundred twenty-four\nof this chapter, or if he finds that more than ten percent of the\naggregate net commissions, received during the term of the existing\nlicense, if any, or to be received during the term of the license\napplied for, by the applicant, resulted or will result from insurance on\nthe property and risks set forth in subparagraphs (A), (B) and (C) of\nparagraph one of subsection (i) of section two thousand one hundred\nthree of this article.\n  (4) Nothing herein shall be deemed to disqualify any applicant by\nreason of acts done or facts existing at a time when the same did not,\nunder the law then in force, constitute or contribute to constituting\nsuch a disqualification.\n  (e) (1) (A) The superintendent shall, in order to determine the\ncompetency of each applicant for an insurance broker's license, other\nthan a renewal license, and of each proposed sub-licensee, to act as\ninsurance broker, require every such person to submit to, and pass to\nthe satisfaction of the superintendent, a personal written examination\non the branches of the insurance business relevant to such license. Such\nexamination shall be held at such times and places as the superintendent\nshall from time to time determine.\n  (B) An exemption may be granted, at the discretion of the\nsuperintendent, as to all or any part of the written examination or the\nprerequisite course specified in subparagraph (A) of paragraph one of\nsubsection (c) of this section, of any individual seeking to be named a\nlicensee or sub-licensee, upon whom has been conferred, in the case of a\nlicense under subparagraph (B) of paragraph one of subsection (b) of\nthis section, the Chartered Property Casualty Underwriter (C.P.C.U.)\ndesignation by the American Institute for Property and Liability\nUnderwriters, or on whom has been conferred, in the case of a license\nunder subparagraph (A) of paragraph one of subsection (b) of this\nsection, the Chartered Life Underwriter (C.L.U.), Chartered Financial\nConsultant (Ch.F.C.) or the Master of Science in Financial Services\n(M.S.F.S.) designations by the American College of Financial Service\nProfessionals.\n  (2) Every individual applying to take any written examination shall,\nat the time of applying therefor, pay to the superintendent, or, at the\ndiscretion of the superintendent, directly to any organization that is\nunder contract to provide examination services, an examination fee of an\namount which is the actual documented administrative cost of conducting\nsaid qualifying examination as certified by the superintendent from time\nto time. An examination fee represents an administrative expense and is\nnot refundable. The superintendent may, whenever in his judgment it\nappears advisable in order to determine the competency of any applicant\nfor a renewal license, or of any proposed sub-licensee to be named\ntherein, require such person to pass to the satisfaction of the\nsuperintendent, a similar written examination.\n  (3) The superintendent may issue a license to any person seeking to be\nnamed as licensee or sub-licensee who:\n  (A) has since July first, nineteen hundred twenty-eight, passed the\nexamination given by the superintendent for that insurance broker's\nlicense and was licensed as such;\n  (B) within three years from the date of the receipt of his application\nwas a similarly licensed insurance broker;\n  (C) within ten years from the date of the receipt of his application\nwas, in the case of a license under subparagraph (B) of paragraph one of\nsubsection (b) of this section, a similarly licensed insurance broker\nand during the period of three years next preceding the receipt of his\napplication was licensed as a property/casualty insurance agent and, in\nthe case of a license under subparagraph (A) of paragraph one of\nsubsection (b) of this section, was a similarly licensed insurance\nbroker and during the period of three years next preceding the receipt\nof his application was licensed as a life and accident and health\ninsurance agent;\n  (D) has regularly and continuously acted, in the case of a license\nunder subparagraph (B) of paragraph one of subsection (b) of this\nsection, as a licensed resident property/casualty and accident and\nhealth insurance agent and, in the case of a license under subparagraph\n(A) of paragraph one of subsection (b) of this section, acted as a\nlicensed life and accident and health insurance agent for a period of at\nleast five years immediately preceding the date of receipt of his\napplication;\n  (E) is a non-resident insurance broker for similar lines;\n  (F) served as a member of the armed forces of the United States at any\ntime, and shall (i) have been discharged under conditions other than\ndishonorable, or (ii) has a qualifying condition, as defined in section\none of the veterans' services law, and has received a discharge other\nthan bad conduct or dishonorable from such service, or (iii) is a\ndischarged LGBT veteran, as defined in section one of the veterans'\nservices law, and has received a discharge other than bad conduct or\ndishonorable from such service, and who within three years prior to his\nor her entry into the armed forces held a license as insurance broker\nfor similar lines, provided his or her application for such license is\nfiled before one year from the date of final discharge; or\n  (G) was previously licensed for the same line or lines of authority in\nanother state, provided, however, that the applicant's home state grants\nnon-resident licenses to residents of this state on the same basis. Such\nindividual shall also not be required to complete any prelicensing\neducation. This exemption is only available if the person is currently\nlicensed in that state or if the application is received within ninety\ndays of the date of cancellation of the applicant's previous license and\nif the prior state issues a certification that, at the time of\ncancellation, the applicant was in good standing in that state or the\nstate's producer database records, maintained by the National\nAssociation of Insurance Commissioners, its affiliates or subsidiaries,\nindicate that the producer is or was licensed in good standing for the\nline of authority requested. An individual or entity licensed in another\nstate who moves to this state shall make an application within ninety\ndays of establishing legal residence to become a resident licensee. No\nprelicensing education or examination shall be required of that person\nto obtain any line of authority previously held in the prior state\nexcept where the superintendent determines otherwise by regulation.\n  (f) (1) At the time of application for every such license, and for\nevery biennial renewal thereof, there shall be paid to the\nsuperintendent for each individual applicant and for each proposed\nsub-licensee the sum of forty dollars for each year or fraction of a\nyear in which a license shall be valid. If, however, the applicant or a\nproposed sub-licensee should withdraw his or its application or the\nsuperintendent should deny his or its application before the license\napplied for is issued, the superintendent may refund the fee paid by the\napplicant for the license applied for, excepting any examination fees\nrequired pursuant to subsection (e) of this section.\n  (2) No license fee shall be required of any person who served as a\nmember of the armed forces of the United States at any time, and who (A)\nshall have been discharged, under conditions other than dishonorable, or\n(B) has a qualifying condition, as defined in section one of the\nveterans' services law, and has received a discharge other than bad\nconduct or dishonorable from such service, or (C) is a discharged LGBT\nveteran, as defined in section one of the veterans' services law, and\nhas received a discharge other than bad conduct or dishonorable from\nsuch service, in a current licensing period, for the duration of such\nperiod.\n  (g) (1) Every insurance broker's license issued pursuant to this\nsection to a business entity shall be for a term expiring on the\nthirtieth day of June of odd-numbered years. On and after January first,\ntwo thousand seven, every license issued pursuant to this section to an\nindividual, and every license in effect prior to January first, two\nthousand seven that was issued pursuant to this section to an\nindividual, who was born in an odd numbered year, shall expire on the\nindividual's birthday in each odd numbered year. On and after January\nfirst, two thousand seven, every license issued pursuant to this section\nto an individual, and every license in effect prior to January first,\ntwo thousand seven that was issued pursuant to this section to an\nindividual, who was born in an even numbered year, shall expire on the\nindividual's birthday in each even numbered year. Every such license may\nbe renewed for the ensuing period of twenty-four months upon the filing\nof an application in conformity with this section. In the case of a\nlicense issued to a new applicant, the superintendent may issue a\nlicense for a term of more than two years, provided however, such term\nshall not exceed thirty months. The superintendent may issue such rules\nand regulations as the superintendent deems necessary to implement the\nterms of this subsection including regulations providing that, prior to\nJuly first, two thousand twenty-three, the registration fees and\ncontinuing education requirements for the renewal of any license issued\nto a business entity pursuant to this subsection for a period that is\nmore than twenty-four months may be increased in proportion to the\nlength of the period of licensure.\n  (2) An application for a renewal license shall be filed with the\nsuperintendent not less than sixty days prior to the date the license\nexpires or the applicant shall be required to pay, in addition to the\nfee required in subsection (f) of this section, a further fee for late\nfiling of ten dollars.\n  (3) If an application for a renewal license shall have been filed with\nthe superintendent before the expiration of such license, the license\nsought to be renewed shall continue in full force and effect either\nuntil the issuance by the superintendent of the renewal license applied\nfor or until five days after the superintendent shall have refused to\nissue such renewal license and given notice of such refusal to the\napplicant and to each proposed sub-licensee.\n  (4) Before refusing to renew any such license, except on the ground of\nfailure to pass a written examination required pursuant to subsection\n(e) hereof, the superintendent shall notify the applicant of his\nintention so to do and shall give such applicant a hearing.\n  (5) (A) The superintendent may in issuing a renewal license dispense\nwith the requirement of a verified application by any individual\nlicensee or sub-licensee who, by reason of being engaged in any military\nservice for the United States, is unable to make personal application\nfor such renewal license, upon the filing of an application on behalf of\nsuch individual, in such form as the superintendent shall prescribe, by\nsome person or persons who in his judgment have knowledge of the facts\nand who make affidavit showing such military service and the inability\nof such insurance broker to make personal application.\n  (B) An individual licensee or sub-licensee who is unable to comply\nwith license renewal procedures due to other extenuating circumstances,\nsuch as a long-term medical disability, may request a waiver of such\nprocedures, in such form as the superintendent shall prescribe. The\nlicensee or sub-licensee may also request a waiver of any examination\nrequirement or any other fine or sanction imposed for failure to comply\nwith renewal procedures.\n  (h) Any corporation, association or firm licensed as an insurance\nbroker under this section may at any time make an application to the\nsuperintendent for the issuance of a supplemental license authorizing\nadditional officers or directors of such corporation, or additional\nmembers of such firm or association, as the case may be, to act as\nsub-licensees, and, if the requirements of this section are fully\ncomplied with as to each of such proposed sub-licensees, the\nsuperintendent may issue to such licensee a supplemental license naming\nsuch additional person or persons as sub-licensees.\n  (i) If an application for a license under this section be rejected, or\nif such a license be suspended or revoked by the superintendent, he\nshall forthwith give notice thereof to the applicant, or to the\nlicensee.\n  (j) The superintendent may issue a replacement for a currently in\nforce license which has been lost or destroyed. Before such replacement\nlicense shall be issued, there shall be on file in the office of the\nsuperintendent a written application for such replacement license,\naffirming under penalty of perjury that the original license has been\nlost or destroyed, together with a fee of fifteen dollars.\n