2013 New York Consolidated Laws
ISC - Insurance
Article 21 - (2101 - 2138) 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  have  been  discharged  under  conditions  other  than
  dishonorable  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
  shall have been discharged, under conditions other than dishonorable, 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
  thirty-first day of October of even-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.
    (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.