NY Ins L § 2104 (2021)
2021 New York Laws ISC - Insurance Article 21 - Agents, Brokers, Adjusters, Consultants and Intermediaries 2104 - Insurance Brokers; Licensing.

§  2104.  Insurance brokers; licensing. (a) (1) The superintendent may issue an insurance broker's license to any individual, firm, association or corporation, hereinafter designated as "licensee," who  or  which  is deemed  by  him  trustworthy  and  competent  to act as a broker in such manner as to safeguard the interests of the insured, and who or which is otherwise qualified as herein required, and who or  which  has  complied with the prerequisites herein prescribed.  (2)  The purpose of this section is to protect the public by requiring and maintaining professional standards of conduct on  the  part  of  all insurance brokers acting as such within this state.  (b)  (1)  Such license shall confer upon the licensee authority to act in this state as insurance broker, and upon every natural  person  named as  sub-licensee  in  such  license  authority  to  act in this state as insurance broker in the name of and on behalf  of  such  licensee,  with respect to the following lines of authority:  (A)  life  insurance,  variable  life  and  variable annuity products, 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 and legal services insurance; or  (B) any and  every  line  of  authority,  except  life  insurance  and variable life and variable annuity products.  (2)  A  license issued to a corporation may name as sub-licensees only the officers and directors of such corporation, and a license issued  to a  firm  or  association  may  name as sub-licensees only the individual members of such firm or association. Each  sub-licensee  named  in  such license  must  be  qualified to obtain a license as an insurance broker, and for each such sub-licensee a fee must be paid at the  times  and  at the rates hereinafter specified.  (3)  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.  (c) (1) Every individual applicant for such license and every proposed sub-licensee shall be of the age of eighteen years or over at  the  time of the issuance of such license. No individual shall be deemed qualified to  obtain such license or to be named as sub-licensee therein unless he shall comply with the requirements  of  subparagraph  (A),  (B)  or  (C) following:  (A) 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,  in  the  case  of  a license  under  subparagraph  (B)  of paragraph one of subsection (b) of this section, not less than ninety hours, and in the case of  a  license under  subparagraph  (A)  of  paragraph  one  of  subsection (b) of this section, not less than forty hours of classroom work or  the  equivalent thereof in correspondence work. Such course or courses either were 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  a  part of  any  such curriculum or separately, or were given by the The College of Insurance, or by any other  institution  which  maintains  equivalent standards  of  instruction, which has been continuously in existence for not less than five years prior to the taking  of  such  course  by  such individual,  and  which shall have been approved for such purpose by the superintendent.  (B) He shall have been regularly employed by an insurance  company  or an  insurance  agent  or  an  insurance  broker, for a period or periods  aggregating not less than one year during the three years next preceding the date of application, in the case of a license under subparagraph (B) of paragraph one of subsection  (b)  of  this  section,  in  responsible insurance  duties relating to the underwriting or adjusting of losses in any one or more of the following branches of  insurance:  fire,  marine, liability  and  workers'  compensation,  and fidelity and surety; in the case of a license under subparagraph (A) of paragraph one of  subsection (b)  of this section in responsible insurance duties relating to the use of life insurance, accident and health insurance and  annuity  contracts in  the  design  and administration of plans for estate conservation and distribution, employee benefits and business continuation; and he  shall submit  with his application a statement subscribed and affirmed as true under the penalties of perjury by such  employer  or  employers  stating facts which show compliance with this requirement.  (C)  He  shall have been regularly employed by an insurance company or an insurance agent or an insurance  broker,  for  a  period  or  periods aggregating  not  less  than  one  year,  during  the  three  years next preceding the date of entrance into the service of the armed  forces  of the  United  States or immediately following his discharge therefrom, in the case of a  license  under  subparagraph  (B)  of  paragraph  one  of subsection (b) of this section, in responsible insurance duties relating to  the  underwriting  or  adjusting of losses in any one or more of the following branches of insurance: fire, marine,  liability  and  workers' compensation,  and  fidelity  and surety; in the case of a license under subparagraph (A) of paragraph one of subsection (b) of this  section  in responsible  insurance  duties  relating  to  the use of life insurance, accident and health insurance and annuity contracts in  the  design  and administration  of  plans  for  estate  conservation  and  distribution, employee benefits and business continuation;  provided  the  application for  such  license  is filed within one year from the date of discharge; and he shall submit with his  application  a  statement  subscribed  and affirmed  as  true  under  the  penalties of perjury by such employer or employers stating facts which show compliance with this requirement.  (2) The requirements of subparagraphs (A), (B) and  (C)  of  paragraph one hereof shall not apply to any non-resident insurance broker.  (d)  (1) Before any such license shall be issued by the superintendent and before each renewal, there shall be filed in his  office  a  written application  therefor  by  the  proposed  licensee  and by each proposed sub-licensee. Such application  shall  be  in  the  form  or  forms  and supplements   prescribed   by   the   superintendent  and  contain  such information as he or she shall require 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. In connection  with any  such  application  the  superintendent  shall have power to examine under oath any person who has or appears to have  relevant  information, and to make an examination of the books, records and affairs of any such applicant.  (2) The superintendent may require from every applicant and from every proposed  sub-licensee,  before  issuing  any  such  license  or renewal license, a statement  subscribed  and  affirmed  by  the  applicant  and proposed  sub-licensee  as true 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.  (3)  The  superintendent  may  refuse  to  issue  a license or renewal license, as the case may be, to 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 term of the existing license, if any, or to be  received  during  the  term  of  the  license applied for, by the applicant, resulted or will result from insurance on the  property  and  risks set forth in subparagraphs (A), (B) and (C) of paragraph one of subsection (i) of  section  two  thousand  one  hundred three of this article.  (4)  Nothing  herein  shall  be  deemed to disqualify 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.  (e) (1) (A) The  superintendent  shall,  in  order  to  determine  the competency  of  each  applicant for an insurance broker's license, other than a renewal license, and of each proposed  sub-licensee,  to  act  as insurance  broker,  require  every such person to submit to, and pass to the satisfaction of the superintendent, a personal  written  examination on the branches of the insurance business relevant to such license. Such examination shall be held at such times and places as the superintendent shall from time to time determine.  (B)   An   exemption   may  be  granted,  at  the  discretion  of  the superintendent, as to all or any part of the written examination or  the prerequisite  course  specified  in subparagraph (A) of paragraph one of subsection (c) of this section, of any individual seeking to be named  a licensee or sub-licensee, upon whom has been conferred, in the case of a license  under  subparagraph  (B)  of paragraph one of subsection (b) of this section, the Chartered  Property  Casualty  Underwriter  (C.P.C.U.) designation  by  the  American  Institute  for  Property  and  Liability Underwriters, or on whom has been conferred, in the case  of  a  license under  subparagraph  (A)  of  paragraph  one  of  subsection (b) of this section, the Chartered Life Underwriter  (C.L.U.),  Chartered  Financial Consultant  (Ch.F.C.)  or  the  Master  of Science in Financial Services (M.S.F.S.) designations by the American  College  of  Financial  Service Professionals.  (2)  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,  whenever  in  his  judgment  it appears  advisable in order to determine the competency of any applicant for a renewal license, or of  any  proposed  sub-licensee  to  be  named therein,  require  such  person  to  pass  to  the  satisfaction  of the superintendent, a similar written examination.  (3) The superintendent may issue a license to any person seeking to be named as licensee or sub-licensee who:  (A) has since July first, nineteen hundred  twenty-eight,  passed  the examination  given  by  the  superintendent  for that insurance broker's license and was licensed as such;  (B) within three years from the date of the receipt of his application was a similarly licensed insurance broker;  (C) within ten years from the date of the receipt of  his  application was, in the case of a license under subparagraph (B) of paragraph one of subsection  (b)  of  this section, a similarly licensed insurance broker and during the period of three years next preceding the receipt  of  his application  was licensed as a property/casualty insurance agent and, in the case of a  license  under  subparagraph  (A)  of  paragraph  one  of subsection  (b)  of  this  section,  was  a similarly licensed insurance broker and during the period of three years next preceding  the  receipt of  his  application  was  licensed  as  a  life and accident and health insurance agent;  (D) has regularly and continuously acted, in the  case  of  a  license under  subparagraph  (B)  of  paragraph  one  of  subsection (b) of this section, as a  licensed  resident  property/casualty  and  accident  and health  insurance agent and, in the case of a license under subparagraph (A) of paragraph one of subsection (b)  of  this  section,  acted  as  a licensed life and accident and health insurance agent for a period of at least  five  years  immediately  preceding  the  date  of receipt of his application;  (E) is a non-resident insurance broker for similar lines;  (F) served as a member of the armed forces of the United States at any time, and shall (i) have been discharged  under  conditions  other  than dishonorable,  or (ii) 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 (iii) 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, and who within three years  prior  to his  entry  into the armed forces held a license as insurance broker for similar lines, provided his application for such license is filed before one year from the date of final discharge; or  (G) 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.  (f) (1) At the time of application for every  such  license,  and  for every   biennial   renewal   thereof,   there   shall  be  paid  to  the superintendent for each  individual  applicant  and  for  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 applicant or  a proposed  sub-licensee  should  withdraw  his  or its application or the superintendent should deny his or its  application  before  the  license applied for is issued, the superintendent may refund the fee paid by the applicant  for  the  license applied for, excepting any examination fees required pursuant to subsection (e) of this section.  (2) 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, 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.  (g) (1) Every insurance  broker's  license  issued  pursuant  to  this section  to  a  business  entity  shall  be  for  a term expiring on the thirtieth day of June 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 section. 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. 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.  (2)  An  application  for  a  renewal  license shall be filed with the superintendent not less than sixty days prior to the  date  the  license expires  or  the  applicant shall be required to pay, in addition to the fee required in subsection (f) of this section, a further fee  for  late filing of ten dollars.  (3) 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  given  notice of such refusal to the applicant and to each proposed sub-licensee.  (4) Before refusing to renew any such license, except on the ground of failure to pass a written examination required  pursuant  to  subsection (e)  hereof,  the  superintendent  shall  notify  the  applicant  of his intention so to do and shall give such applicant a hearing.  (5) (A) The superintendent may in issuing a renewal  license  dispense with  the  requirement  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 broker 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.  (h)  Any  corporation,  association  or  firm licensed as an insurance broker under this section may at any time make  an  application  to  the superintendent  for  the  issuance of a supplemental license authorizing additional officers or directors  of  such  corporation,  or  additional members  of  such  firm  or  association,  as the case may be, to act as sub-licensees, and, if  the  requirements  of  this  section  are  fully complied   with   as   to  each  of  such  proposed  sub-licensees,  the superintendent may issue to such licensee a supplemental license  naming such additional person or persons as sub-licensees.  (i) If an application for a license under this section be rejected, or if  such  a  license  be  suspended or revoked by the superintendent, he shall forthwith  give  notice  thereof  to  the  applicant,  or  to  the licensee.  (j)  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.