2013 New York Consolidated Laws
ISC - Insurance
Article 21 - (2101 - 2138) 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,  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.
    (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 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 subsection.
    (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
  shall have  been  discharged  therefrom,  under  conditions  other  than
  dishonorable,  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.