2023 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
one of the veterans' services 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  one  of  the  veterans'
services  law,  and  has  received a discharge other than bad conduct or
dishonorable from such service, and who within three years prior to  his
or  her  entry  into the armed forces held a license as insurance broker
for similar lines, provided his or her 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  one  of  the
veterans'  services  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 one of the veterans' services 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.