N.Y. Insurance Law § 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

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.

(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.