NY Ins L § 2103 (2021)
2021 New York Laws ISC - Insurance Article 21 - Agents, Brokers, Adjusters, Consultants and Intermediaries 2103 - Insurance Agents; Licensing.

§  2103. Insurance agents; licensing. (a) The superintendent may issue a license to any person, firm or corporation who or which  has  complied with  the requirements of this chapter, authorizing such licensee to act as an insurance agent with respect to the lines of  authority  for  life insurance,  variable life and variable annuity products, or accident and health insurance and sickness or any other line of authority  deemed  to be  similar  by  the  superintendent, including for this purpose, health maintenance organization contracts, legal  services  insurance  or  with respect  to  any combination of the above, as specified in such license, on  behalf  of  any  insurer,  fraternal  benefit  society   or   health maintenance  organization,  which is authorized to do such kind or kinds of insurance or health maintenance organization business in this state.  (b) The superintendent may  issue  a  license  to  any  person,  firm, association   or   corporation  who  or  which  has  complied  with  the requirements of this chapter, authorizing the licensee to act  as  agent of any authorized insurer, other than an insurer specified in subsection (b)  of  section  two thousand one hundred fifteen of this article, with respect to the lines of authority for accident and health  or  sickness, property,  casualty,  personal  lines  or  any  other  line of authority granted  other  than  life,  and  variable  life  and  variable  annuity products, which such insurer is authorized to do in this state.  (c)  Any  such license issued to a firm or association shall authorize only the members thereof, named in such license as sub-licensees, to act individually as agents thereunder, and any  such  license  issued  to  a corporation  shall  authorize  only  the officers and directors thereof, named in such license as sub-licensees, to act  individually  as  agents thereunder.  Every  sub-licensee,  acting as insurance agent pursuant to such a license shall be authorized so to act only in  the  name  of  the licensee.  (d)  Every  individual  applicant for a license under this section and every proposed sub-licensee shall be eighteen years of age  or  over  at the time of the issuance of such license.  (e)  Before  any  original  insurance  agent's license is issued there shall be on file in the office of the superintendent an  application  by the  prospective  licensee  in  such  form or forms and supplements, and containing  information  the  superintendent  prescribes  and  for  each business   entity,  the  sub-licensee  or  sub-licensees  named  in  the application shall be designated responsible for  the  business  entity's compliance with the insurance laws, rules and regulations of this state.  (f) (1) The superintendent shall, in order to determine the competency of every individual applicant and of every proposed sub-licensee to have the  kind of license applied for, require such individual to submit to a personal written examination and to pass the same to the satisfaction of the superintendent. Such examination shall be held  at  such  times  and places  as  the  superintendent shall from time to time determine. Every individual applying to take any written examination shall, at  the  time of  applying  therefor, pay to the superintendent, or, at the discretion of the superintendent,  directly  to  any  organization  that  is  under contract  to  provide  examination  services,  an  examination fee of an amount which is the actual documented administrative cost of  conducting said qualifying examination as certified by the superintendent from time to  time. An examination fee represents an administrative expense and is not refundable. The superintendent may  accept,  in  lieu  of  any  such examination,  the  result  of any previous written examination, given by the  superintendent,  which  in  his  judgment  is  equivalent  to   the examination for which it is substituted.  (2)   The  superintendent  may  from  time  to  time  make  reasonable classifications  of  the  kinds  of  insurance  and  may  prescribe  the following types of examinations:  (A)  For  individuals  seeking  to  qualify  to obtain a license under subsection (a) of this section, one  examination  adapted  to  test  the qualifications  for a life insurance agent's license, another adapted to test the qualifications for an accident  and  health  insurance  agent's license  and  another  adapted  to  test  the qualifications for a legal services insurance license. Each such individual shall  be  required  to pass  the  type or types of examination prescribed by the superintendent for the line or lines of authority, as specified in  subsection  (a)  of this  section,  for  which the license is sought. No individual shall be deemed qualified to take the examination or examinations unless he shall have successfully completed a course or courses, approved as  to  method and  content  by the superintendent, covering the principal branches and contracts of life insurance, annuity  contracts,  disability  insurance, accident  and  health  insurance and related insurance and requiring not less  than  forty  hours  of  classroom  work  or  the   equivalent   in correspondence  work or similar instruction, provided, however, that, at the discretion of the superintendent, insurance subject material may  be eliminated from course content, with a corresponding reduction in course hours, if an insurer is not authorized to transact such kind or kinds of insurance  in  this state. Such course or courses either shall have been given by a degree conferring college or university which has, when  such course is taken by such individual, a curriculum or curricula registered with  the  state  education  department, whether such course be given as part of any such curricula or separately, or by any other institution or life or accident and health insurer which maintains equivalent standards of instruction, and which shall have been approved for such  purpose  by the superintendent.  (B)  For  individuals  seeking  to  qualify  to obtain a license under subsection (b) of this section, not more than six types of examinations, each adapted to test the qualifications of an individual with respect to the kinds of insurance business specified in such classification.  Every such  individual  shall  be  required  to  pass  the  type  or  types of examination prescribed by the superintendent for the line  or  lines  of authority for which the license is sought. No individual shall be deemed qualified  to  take  the  examination  unless he shall have successfully completed a course or courses, approved as to method and content by  the superintendent,   covering  the  principal  branches  of  the  insurance business and requiring not less than ninety hours of classroom  work  or the  equivalent  in  correspondence  work,  a  course  offered  over the internet or a similar institution, in institutions of  learning  meeting the  standards  prescribed by paragraph one of subsection (a) of section two thousand one hundred four of this article; provided,  however,  with respect  to  a license issued pursuant to subsection (b) of this section for a personal line of authority, there shall be required not less  than forty  hours  of such classroom work or the equivalent in correspondence work, a course offered over the internet or a similar institution.  (3) The superintendent shall require  that  all  written  examinations request  the  applicant  to  set  forth:  (i) his or her full name, age, residence address,  business  address  and  mailing  address;  (ii)  the applicant's  gender;  (iii)  the  applicant's  native language; (iv) the applicant's highest level of education achieved; and (v) the applicant's race or ethnicity. This section of the examination shall include a clear and unambiguous statement that the applicant is not required to disclose his or her race or  ethnicity,  gender,  native  language  or  level  of education,  that  he  or she will not be penalized for failing to do so,  and that the department will use this information solely for statistical purposes that will then be studied in order to ensure continued  quality and fairness of the examination.  (g) No such written examination shall be required:  (1)  as  a  prerequisite  to the issuance of a baggage or accident and health  insurance  agent's  license  to  any  ticket  selling  agent  or representative of a railroad company, steamship company, carrier by air, or  public bus carrier, who shall act thereunder as insurance agent only in reference to the issuance of baggage or  accident  insurance  tickets primarily for the purpose of covering risk of travel;  (2)  in  the discretion of the superintendent, of any individual whose license has been revoked or suspended;  (3) of any individual seeking to  be  named  as  a  licensee  or  sub- licensee,  under subsection (a) hereof, to represent a fraternal benefit society as its agent;  (4)  in  connection  with  any  certificate  of  appointment  for   an additional  insurer,  provided  the  certificate of appointment does not include any additional kind of insurance;  (5) in the discretion of the superintendent, of any individual seeking to be named  as  a  licensee  or  sub-licensee  who  is  a  non-resident insurance agent;  (6)  of  any  person who received a license effective the first day of July,  nineteen  hundred  eighty-seven  to  represent   any   assessment corporation  which  was  limited  on that date to the kinds of insurance specified in subsection (a) of section six thousand six hundred five  of this  chapter, and whose license is limited to those kinds of insurance, in connection with any certificate of appointment to  represent  another such  assessment  corporation,  provided  the certificate of appointment does not include any additional kind of insurance.  (7) of any applicant who has passed the written examination  given  by the  superintendent for an insurance agent's license and was licensed as such or of an applicant who was licensed as an insurance agent  but  did not  pass such an examination, provided the applicant applies within two years following the date of termination of his license;  (8) of any person who was appointed prior to the first  day  of  July, nineteen  hundred  fifty-seven,  to  represent  any  domestic assessment co-operative property/casualty insurance company which shall be licensed to do the  business  permitted  under  subsection  (b)  of  section  six thousand  six  hundred five of this chapter, provided such person within three  months  after  that  date  files  with  the   superintendent   an application  for  a  license  in  such  form as the superintendent shall prescribe;  (9) in the discretion of the superintendent, as to all or any part  of the  written  examination  or the prerequisite minimum forty hour course specified in subparagraph (A) of paragraph two of subsection (f) of this section,  of  any  individual  seeking  to  be  named  a   licensee   or sub-licensee,   upon   whom   has  been  conferred  the  Chartered  Life Underwriter (C.L.U.) or Chartered Life Underwriter Associate designation by The American College;  (10) in the discretion of the superintendent, as to all or any part of the written examination or the prerequisite minimum ninety  hour  course specified in subparagraph (B) of paragraph two of subsection (f) of this section,   of   any  individual  seeking  to  be  named  a  licensee  or sublicensee,  upon  whom  has  been  conferred  the  Chartered  Property Casualty  Underwriter  (C.P.C.U.)  designation by the American Institute for Property and Liability Underwriters; or  (11) of any individual who applies for an insurance agent  license  in this  state  who  was  previously licensed for the same line or lines of  authority in another state, provided, however, that the applicant's home state grants non-resident licenses to residents of  this  state  on  the same  basis.  Such individual shall also not be required to complete any prelicensing  education.  This exemption is only available if the person is currently licensed in that state or if the  application  is  received within  ninety  days  of  the  date  of  cancellation of the applicant's previous license and if the prior state issues a certification that,  at the  time  of  cancellation,  the applicant was in good standing in that state or the  state's  producer  database  records,  maintained  by  the National  Association  of  Insurance  Commissioners,  its  affiliates or subsidiaries, indicate that the producer is  or  was  licensed  in  good standing  for  the  line of authority requested. An individual or entity licensed in another  state  who  moves  to  this  state  shall  make  an application within ninety days of establishing legal residence to become a  resident  licensee. No prelicensing education or examination shall be required of that person to obtain any line of authority previously  held in  the prior state except where the superintendent determines otherwise by regulation.  (h) The superintendent may  refuse  to  issue  any  insurance  agent's license  if,  in his judgment, the proposed licensee or any sub-licensee is not trustworthy and competent to act as  such  agent,  or  has  given cause  for the revocation or suspension of such a license, or has failed to comply with any prerequisite for the issuance of such license.  (i) (1) The superintendent may require from every applicant  and  from every proposed sub-licensee, before or after issuing any such license, a statement  subscribed  and  affirmed  as true by the applicant under the penalties of perjury as to the ownership of any interest in an applicant firm, association or corporation and as to facts indicating whether  any applicant  has been by reason of an existing license, if any, or will be by reason of the license applied for, receiving any benefit or advantage in violation of section two thousand three hundred twenty-four  of  this chapter,  and  also  as  to  such  facts as he may deem pertinent to the requirements of this subsection. The superintendent may refuse to issue, suspend or revoke a license, as the case may be, to or of any  applicant if  he  finds  that  such  applicant  has been or will be, as aforesaid, receiving any benefit or advantage in violation of section two  thousand three hundred twenty-four of this chapter, or if he finds that more than ten percent of the aggregate net commissions, received during the twelve month period immediately preceding, if any, or to be received during the ensuing  twelve  months,  by the applicant, resulted or will result from insurance on the property and risks:  (A) of the spouse of an individual applicant; and of  any  corporation of which such individual applicant or his or her spouse or both own more than  fifty  percent  of the shares; and of any affiliated or subsidiary corporations of such corporation; and of the  members  of  any  firm  or association  and  their  spouses,  of  which  firm  or  association  the individual applicant or his or her spouse is a member;  (B) of the members of an  applicant  firm  or  association  and  their respective  spouses,  and  of the owners of any interest in such firm or association and their respective spouses,  and  of  any  corporation  of which  such  firm  or  association  or  the  members or owners and their respective spouses, either individually or in the  aggregate,  own  more than  fifty  percent  of the shares, and of any affiliated or subsidiary corporations of such corporation, and of any other firm and the  members thereof  and  their  respective spouses, of which other firm a member or members of the  applicant  firm  or  association  and  their  respective spouses are members or owners; and  (C)  of  the  shareholders  of  an  applicant  corporation  and  their respective spouses, and of any affiliated and subsidiary corporations of such  applicant  corporation,  and  of  any  subsidiary  and  affiliated corporations  of  a  corporation  owning  any interest in such applicant corporation,  and of any firm or association and the members thereof and their respective spouses which either individually or  collectively  own more  than fifty percent of the shares of the applicant corporation, and of any corporation of which such firm or association and its members and their respective spouses, either individually or in the  aggregate,  own more  than  fifty  percent  of  the  shares,  and  of  any affiliated or subsidiary corporation of such corporation.  (2) Nothing herein disqualifies any applicant by reason of  acts  done or facts existing at a time when the same did not, under the law then in force, constitute or contribute to constituting such a disqualification.  (3)  The  word  "applicant" in this subsection, includes a licensee or sub-licensee.  (j) (1) Any license currently in force issued to an insurance agent of any  insurer,  fraternal   benefit   society   or   health   maintenance organization  pursuant to subsection (a) of this section shall be deemed terminated as of  June  thirtieth,  nineteen  hundred  eighty-five.  Any license  currently  in force issued to an insurance agent of any insurer pursuant to subsection (b) of this section without  an  expiration  date shall  be  deemed  terminated  as  of  June  thirtieth, nineteen hundred eighty-six.  (2) Every license issued to a business entity pursuant  to  subsection (a)  of  this  section  shall  expire  on June thirtieth of odd numbered years.  Every license issued to a business entity pursuant to subsection (b) of this section shall expire  on  June  thirtieth  of  odd  numbered years.  On  and  after  January first, two thousand seven, every license issued pursuant to this section to an individual, and every  license  in effect  prior  to  January  first,  two  thousand  seven that was issued pursuant to this section to an  individual,  who  was  born  in  an  odd numbered  year,  shall  expire  on the individual's birthday in each odd numbered year. On and after January first,  two  thousand  seven,  every license  issued  pursuant  to  this  section to an individual, and every license in effect prior to January first, two thousand  seven  that  was issued  pursuant  to  this  section to an individual, who was born in an even numbered year, shall expire on the individual's  birthday  in  each even  numbered year.   Every such license may be renewed for the ensuing period of twenty-four months  upon  the  filing  of  an  application  in conformity with this subsection. The superintendent may issue such rules and  regulations  as the superintendent deems necessary to implement the terms of this subsection including regulations providing that, prior  to July  first,  two  thousand  twenty-three,  the  registration  fees  and continuing education requirements for the renewal of any license  issued to  a  business  entity pursuant to this subsection for a period that is more than twenty-four months may  be  increased  in  proportion  to  the length of the period of licensure.  (3)  In  the  case  of  a  license  issued  to  a  new  applicant, the superintendent may issue a license for a term of more  than  two  years, provided however, such term shall not exceed thirty months.  (4)  Any  license  shall  be  considered  in  good standing within the license term unless:  (A) revoked or  suspended  by  the  superintendent  pursuant  to  this article.  (B)  all  certificates  of  appointment  have  been  terminated by the insurers, at which time the license becomes inactive.  (C) if at the expiration  date  of  the  license  term,  provided  the license was in good standing during the term, the licensee fails to file a renewal application.  (5)  Before  the  renewal  of  any  insurance agent's license shall be issued, the following requirements shall have been met:  (A) The licensee shall have filed a completed renewal  application  in such   form  or  forms  and  supplements  thereto  and  containing  such information as the superintendent may prescribe.  (B) The licensee shall have paid such fees as are prescribed  in  this section.  (6)  If  the  agent's license is deemed to be in an inactive status at the time of renewal, a renewal application may be  completed  and  filed with the superintendent for the ensuing term of a license; however, if a certificate of appointment is not filed on the agent's behalf within the term  of the renewal, the license will expire and will not be renewed at the end of the license term. During the term of the license for which no certificate of appointment was  on  file,  it  shall  be  deemed  to  be inactive.  (7) If an application for a renewal license shall have been filed with the  superintendent  before  the expiration of such license, the license sought to be renewed shall continue in  full  force  and  effect  either until  the issuance by the superintendent of the renewal license applied for or until five days after the superintendent shall  have  refused  to issue  such  renewal license and shall have given notice of such refusal to the applicant and to each proposed sub-licensee. Before  refusing  to renew  any  such  license,  except  on  the  ground of failure to pass a written examination, the superintendent shall notify  the  applicant  of his intention to do so and shall give such applicant a hearing.  (8)  (A)  The superintendent may in issuing a renewal license dispense with the requirements  of  a  verified  application  by  any  individual licensee or sub-licensee who, by reason of being engaged in any military service  for  the  United States, is unable to make personal application for such renewal license, upon the filing of an application on behalf of such individual, in such form as the superintendent shall prescribe,  by some  person  or persons who in his judgment have knowledge of the facts and who make affidavit showing such military service and  the  inability of such insurance agent to make personal application.  (B)  An  individual  licensee  or sub-licensee who is unable to comply with license renewal procedures due to other extenuating  circumstances, such  as  a  long-term  medical disability, may request a waiver of such procedures, in such form as  the  superintendent  shall  prescribe.  The licensee  or  sub-licensee  may also request a waiver of any examination requirement or any other fine or sanction imposed for failure to  comply with renewal procedures.  (9)  In  addition to any examination fee required by subsection (f) of this section, there  shall  be  paid  to  the  superintendent  for  each individual  license  applicant and each proposed sub-licensee the sum of forty dollars for each year or fraction of a year  in  which  a  license shall  be  valid.  If,  however,  the  license  applicant  or a proposed sub-licensee should  withdraw  the  application  or  the  superintendent should  deny  the  application before the license applied for is issued, the superintendent may refund the fee paid  by  the  applicant  for  the license  applied for with the exception of any examination fees required pursuant to subsection (f) of this section.  (10) An application for the renewal of a license shall be  filed  with the  superintendent  not  less  than  sixty  days  prior to the date the license expires or the applicant shall be subject to a further  fee  for late filing of ten dollars.  (11)  No  license  fee shall be required of any person who served as a member of the armed forces of the United States at any time and who  (A) shall  have  been  discharged  therefrom,  under  conditions  other than dishonorable, or (B) has a qualifying condition, as defined  in  section three  hundred  fifty of the executive law, and has received a discharge other than bad conduct or dishonorable from such service, or  (C)  is  a discharged  LGBT  veteran,  as defined in section three hundred fifty of the executive law, and has received a discharge other than  bad  conduct or  dishonorable  from  such service, in a current licensing period, for the duration of such period.  (12) Except where a corporation, association or firm  licensed  as  an insurance  agent  is  applying to add a sub-licensee, or the date of the expiration of the license is changed, there shall be no fee required for the issuance of an amended license.  (13) The license shall contain the licensee's name, address,  personal identification  number,  the  date  of issuance, the licensee's lines of authority,  the  expiration  date  and   any   other   information   the superintendent deems necessary.  (k)  If  the  superintendent  deems  it  necessary  he may require any licensed agent to submit a new application at any time.  (l) Any licensee may at any time while such license is in force  apply to  the  superintendent  for  an  additional  license  authorizing  such licensee, and the sub-licensees named in such existing license,  to  act as  insurance  agents  for  additional insurers. The superintendent may, after the requirements of this chapter have been  complied  with,  issue such additional license.  (m)  An agent appointed for an insurer authorized to transact business in this state may transact business for any subsidiaries  or  affiliates of  said  insurer  that  are licensed in this state for the same line or lines  of  insurance  without  such   insurers   submitting   additional appointments,  provided  a certified copy of a resolution adopted by the board of directors of each of the insurers requesting such authority  is filed  with  the  superintendent by each of the insurers and renewed and refiled whenever deemed necessary by the superintendent. The  resolution shall  also designate the primary insurer for which all of the company's agents must be appointed pursuant to  subsection  (a)  or  (b)  of  this section,  and said appointment must be in full force and effect in order to transact business for any of the affiliated or subsidiary insurers.  (n) Any insurance agent licensed pursuant to subsection  (b)  of  this section  is  hereby  authorized  while  so licensed, to act in the sale, solicitation or negotiation for an insurance contract  providing  solely for  disability benefits written to meet minimum requirements of article nine of the workers' compensation law.  (o) The superintendent may issue a  replacement  for  a  currently  in force  license which has been lost or destroyed. Before such replacement license shall be issued, there shall be on file in  the  office  of  the superintendent  a  written  application  for  such  replacement license, affirming under penalty of perjury that the original  license  has  been lost or destroyed, together with a fee of fifteen dollars.