N.Y. Insurance Law § 2139: Title insurance agents; licensing

§ 2139. Title insurance agents; licensing. (a) The superintendent may

issue a license to any person, firm, association or corporation that has

complied with the requirements of this chapter, authorizing the licensee

to act as a title insurance agent of any authorized title insurance

corporation.

(b) 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 title insurance 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

title insurance agents thereunder. Every sub-licensee acting as title

insurance agent pursuant to such a license shall be authorized so to act

only in the name of the licensee. At least one designated sub-licensee

must have a financial or other beneficial interest in the licensee.

(c) Every individual applicant for a license under this section and

every proposed licensee shall be eighteen years of age or older at the

time of the issuance of such license.

(d) Before any original title 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 thereto, along with a fee in the amount of forty dollars for

each year or fraction of a year in which the license shall be valid, and

containing information the superintendent prescribes.

(e) The superintendent shall, in order to determine the competency of

every individual applicant and of every proposed sub-licensee for the

title insurance agent license, require such individual to submit to a

personal written examination and to pass the same to the satisfaction of

the superintendent. The 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 that 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 shall not be

refundable. The superintendent may accept, in lieu of any such

examination, the result of any previous written examination, given by

the superintendent, which in the superintendent's judgment, is

equivalent to the examination for which it is substituted.

(f) Every individual seeking to qualify to obtain a license under

subsection (b) of this section shall be required to pass the type or

types of examination prescribed by the superintendent. An individual

shall not be deemed qualified to take the examination unless the

individual has successfully completed a course or courses, approved as

to method and content by the superintendent, covering the title

insurance business and requiring not less than twenty hours of classroom

work or the equivalent in correspondence work or similar instruction.

Such course or courses shall have been given by an institution meeting

the standards prescribed by subparagraph (A) of paragraph one of

subsection (c) of section two thousand one hundred four of this article.

(g) No such written examination or pre-licensing education shall be

required of any:

(1) applicant who files an application under this section within one

year after the effective date of this subsection and who demonstrates to

the satisfaction of the superintendent that such applicant or its

prospective sub-licensee has, without interruption, regularly and

continuously performed the functions of a title insurance agent for a

period of at least five years immediately preceding the filing of such

application and is competent and trustworthy to act as a title insurance

agent;

(2) applicant who has passed the written examination given by the

superintendent for a title insurance agent's license and was licensed as

such, or of an applicant who was licensed as a title insurance agent but

did not pass such an examination, provided the applicant applies within

two years following the date of termination of the applicant's license;

or

(3) applicant seeking to obtain a license as a title insurance agent,

when such applicant is a licensed attorney-at-law in this state provided

that such attorney is in good standing with the New York state office of

court administration.

(h) The superintendent may refuse to issue to an applicant a title

insurance agent's license if, in the superintendent's judgment, the

proposed licensee or any sub-licensee:

(1) is not trustworthy and competent to act as such agent;

(2) has given cause for the revocation or suspension of such a

license; or

(3) has failed to comply with any prerequisite for the issuance of

such license.

(i) (1) Every license issued to a business entity pursuant to

subsection (a) of this section shall expire on June thirtieth of

odd-numbered years.

(2) Every license issued to an individual born in an odd-numbered year

shall expire on the individual's birthday in each odd-numbered year.

Licenses issued to individuals born in even-numbered years shall expire

on the individual's birthday in each even-numbered year.

(3) Every license may be renewed for the ensuing period of twenty-four

months upon the filing of an application in conformity with this

subsection.

(4) The license may be issued for all of such two year terms, or upon

application made during any such term, for the balance thereof.

(5) Any license shall be considered in good standing within the

license term unless:

(A) revoked or suspended by the superintendent pursuant to this

article; or

(B) if at the expiration date of the license term, the licensee fails

to file a renewal application, provided the license was in good standing

during the term.

(6) Before the renewal of any title insurance agent's license shall be

issued, the licensee shall have:

(A) filed a completed renewal application in such form or forms, and

supplements thereto, and containing such information as the

superintendent may prescribe; and

(B) paid such fees as are prescribed in this section.

(7) If an application for a renewal license shall have been filed with

the superintendent before the expiration of such license, then 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 the superintendent's intention to do so and shall give the

applicant a hearing.

(8) 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 or her judgment have knowledge of the

facts and who make affidavit showing such military service and the

inability of such title insurance agent to make personal application.

(9) 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.

(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 of

ten dollars for late filing.

(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 a

title 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 superintendent may issue a replacement license for a

currently in-force license that 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.

(j) The superintendent may refuse to issue a license or renewal

license, as the case may be, to any applicant if the superintendent

finds that the applicant has been or will be:

(1) receiving any benefit or advantage in violation of section six

thousand four hundred nine of this chapter; or

(2) acting in a manner inconsistent with:

(A) regulations by the superintendent which are promulgated in

accordance with the relevant provisions of the federal real estate

settlement procedures act of 1974, as amended; or

(B) section twenty-one hundred thirteen of this article.

(k) For the purposes of this chapter, any person or entity performing

any activity related to the procurement or issuance of a title insurance

policy, as the result of an authorization or request from a licensed

title agent or title insurance corporation, shall be presumed to be

acting under the authority of such licensed agent or title insurance

corporation, for the purpose of performing such activity so authorized

or requested.