N.Y. Insurance Law § 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.