§ 2101 — Definitions

New York § 2101

• Jurisdiction: New York
• Law ISC: Insurance
• Art. 21: Agents, Brokers, Adjusters, Consultants and Intermediaries

Text

§ 2101. Definitions. (a) In this article, "insurance agent" means any\nauthorized or acknowledged agent of an insurer, fraternal benefit\nsociety or health maintenance organization issued a certificate of\nauthority pursuant to article forty-four of the public health law, and\nany sub-agent or other representative of such an agent, who acts as such\nin the solicitation of, negotiation for, or sale of, an insurance,\nhealth maintenance organization or annuity contract, other than as a\nlicensed insurance broker, except that such term shall not include:\n (1) any regular salaried officer or employee of a licensed insurer,\nfraternal benefit society or health maintenance organization or of a\nlicensed insurance agent, who does not solicit or accept from the\npublic, outside of an office of such insurer, health maintenance\norganization or agent, applications or orders for any such contract, if\nsuch officer or employee does not receive a commission or other\ncompensation for his services which commission or other compensation is\ndirectly dependent upon the amount of business done;\n (2) employees of insurers, fraternal benefit societies or health\nmaintenance organizations or organizations employed by insurers,\nfraternal benefit societies or health maintenance organizations who are\nengaging in the inspection, rating or classification of risks, or in the\nsupervision of the training of licensed insurance producers and who are\nnot individually engaged in the sale, solicitation or negotiation of\ninsurance;\n (3) any agent or representative of a fraternal benefit society, other\nthan agents representing societies governed by section four thousand\nfive hundred twenty-seven of this chapter, who devotes, or intends to\ndevote, less than fifty percent of the person's time to the solicitation\nand negotiation or sale of insurance contracts for fraternal benefit\nsocieties and who receives or intends to receive any commission or other\ncompensation directly dependent on the amount of insurance, provided\nthat any person who in the preceding calendar year has solicited,\nnegotiated or sold any of the following contracts of insurance on behalf\nof a fraternal benefit society is presumed to have devoted, or intended\nto devote, fifty percent of the person's time to the solicitation,\nnegotiation and sale of insurance contracts;\n (A) life insurance contracts that, in the aggregate, exceed two\nhundred thousand dollars of coverage for all lives insured for the\npreceding calendar year;\n (B) a permanent life insurance contract offering more than ten\nthousand dollars of coverage on an individual life;\n (C) a term life insurance contract offering more than fifty thousand\ndollars of coverage on an individual life;\n (D) any insurance contracts other than life that the fraternal benefit\nsociety may write that insure the individual lives of more than\ntwenty-five persons;\n (E) any variable life insurance or variable annuity contract;\n (4) any agent or other representative of any title insurance company;\n (5) any service contract provider or any administrator or person\ndesignated by a service contract provider who in this state markets,\nsells, offers for sale, issues, makes, proposes to make or administer\nservice contracts pursuant to article seventy-nine of this chapter;\n (6) a person who secures and furnishes information for the purpose of\ngroup life insurance, group property/casualty insurance, group\nannuities, group or blanket accident and health insurance; or for the\npurpose of enrolling individuals under plans, issuing certificates under\nplans or otherwise assisting in administering plans; or performing\nadministrative services related to mass marketed property/casualty\ninsurance, provided that no commission is paid to the person for the\nservice;\n (7) an employer or association or its officers, directors, employees,\nor the trustees of an employee trust plan, to the extent that the\nemployers, officers, employees, directors or trustees are engaged in the\nadministration or operation of a program of employee benefits for the\nemployer's or association's own employees or the employees of its\nsubsidiaries or affiliates, which program involves the use of insurance\nissued by an insurer, fraternal benefit society or health maintenance\norganization, as long as the employers, associations, officers,\ndirectors, employees or trustees are not in any manner compensated,\ndirectly or indirectly, by the company issuing the contracts;\n (8) a person whose activities in this state are limited to advertising\nwithout the intent to solicit insurance in this state through\ncommunications in printed publications or other forms of electronic mass\nmedia whose distribution is not limited to residents of the state,\nprovided that the person does not sell, solicit or negotiate insurance\nthat would insure risks residing, located or to be performed in this\nstate;\n (9) a person who is not a resident of this state who sells, solicits\nor negotiates a contract of insurance for commercial property/casualty\nrisks to an insured with risks located in more than one state insured\nunder that contract, provided that such person is otherwise licensed as\nan insurance producer to sell, solicit or negotiate that insurance in\nthe state where the insured maintains its principal place of business\nand the contract of insurance insures risks located in that state;\n (10) any salaried full-time employee who counsels or advises his or\nher employer relative to the insurance interests of the employer or of\nthe subsidiaries or business affiliates of the employer provided that\nthe employee does not sell or solicit insurance or receive a commission;\nor\n (11) any person who has received a grant from and has been certified\nby the health benefit exchange established pursuant to section 1311 of\nthe affordable care act, 42 U.S.C. § 18031, to act as a navigator, as\nsuch term is used in 42 U.S.C. § 18031(i), provided that the person: (A)\nhas completed the training required by the health benefit exchange; (B)\ndoes not sell insurance; (C) does not engage in any activity with\nrespect to insurance not expressly permitted under 42 U.S.C. §\n18031(i)(3) and regulations thereunder; and (D) does not receive any\ncompensation for acting as a navigator directly or indirectly from an\ninsured, insurance producer, or an insurer.\n (b) In this article, "independent insurance agent" means an "insurance\nagent" who is not owned or controlled by any insurer, fraternal benefit\nsociety or health maintenance organization or group of such insurers and\nwhose agency agreement does not prohibit the representation of other\ninsurers or groups of insurers and which provides that upon termination\nof the agreement the agent's records and use and control of expirations\nremain the property of the agent. Only an "independent insurance agent"\nshall be represented to the public as an independent insurance agent or\nagency.\n (c) In this article, "insurance broker" means any person, firm,\nassociation or corporation who or which for any compensation, commission\nor other thing of value acts or aids in any manner in soliciting,\nnegotiating or selling, any insurance or annuity contract or in placing\nrisks or taking out insurance, on behalf of an insured other than\nhimself, herself or itself or on behalf of any licensed insurance\nbroker, except that such term shall not include:\n (1) any salaried full-time employee who counsels or advises his or her\nemployer relative to the insurance interests of the employer or of the\nsubsidiaries or business affiliates of the employer provided that the\nemployee does not sell or solicit insurance or receive a commission;\n (2) an officer, director or employee of a licensed insurance producer,\nprovided that the officer, director or employee does not receive any\ncommission on policies written or sold to insure risks residing, located\nor to be performed in this state and:\n (A) the officer, director or employee's activities are executive,\nadministrative, managerial, clerical or a combination of these, and are\nonly indirectly related to the sale, solicitation or negotiation of\ninsurance; or\n (B) the officer, director or employee's function relates to\nunderwriting, loss control, inspection or the processing, adjusting,\ninvestigating or settling of a claim on a contract of insurance; or\n (C) the officer, director or employee is acting in the capacity of a\nspecial agent or agency supervisor assisting licensed insurance\nproducers where the person's activities are limited to providing\ntechnical advice and assistance to licensed insurance producers and do\nnot include the sale, solicitation or negotiation of insurance;\n (3) any foreign freight forwarder registered with the federal maritime\ncommission or any custom house broker licensed by the United States\ntreasury department, when such forwarder or broker negotiates, issues or\ndelivers a certificate or other evidence of a contract of insurance\nunder an open marine policy naming the forwarder or broker as the\ninsured and covering exports or imports serviced by such forwarder or\nbroker on behalf of others, provided that such forwarder or broker takes\nor receives no money or other thing of value when acting as hereinafter\nspecified, from any insurer or representative thereof, unless the\nreceipt of money or thing of value is authorized under this chapter;\n (4) any service contract provider or any administrator or person\ndesignated by a service contract provider who in this state markets,\nsells, offers for sale, issues, makes, proposes to make or administers\nservice contracts pursuant to article seventy-nine of this chapter;\n (5) a person who secures and furnishes information for the purpose of\ngroup life insurance, group property/casualty insurance, group\nannuities, group or blanket accident and health insurance; or for the\npurpose of enrolling individuals under plans, issuing certificates under\nplans or otherwise assisting in administering plans; or performs\nadministrative services related to mass marketed property/casualty\ninsurance, where no commission is paid to the person for the service;\n (6) an employer or association or its officers, directors, employees,\nor the trustees of an employee trust plan, to the extent that the\nemployers, officers, employees, director or trustees are engaged in the\nadministration or operation of a program of employee benefits for the\nemployer's or association's own employees or the employees of its\nsubsidiaries or affiliates, which program involves the use of insurance\nissued by an insurer, fraternal benefit society or health maintenance\norganization, as long as the employers, associations, officers,\ndirectors, employees or trustees are not in any manner compensated,\ndirectly or indirectly, by the company issuing the contracts;\n (7) a person whose activities in this state are limited to advertising\nwithout the intent to solicit insurance in this state through\ncommunications in printed publications or other forms of electronic mass\nmedia whose distribution is not limited to residents of the state,\nprovided that the person does not sell, solicit or negotiate insurance\nthat would insure risks residing, located or to be performed in this\nstate;\n (8) a person who is not a resident of this state who sells, solicits\nor negotiates a contract for commercial property/casualty risks to an\ninsured with risks located in more than one state insured under that\ncontract, provided that such person is otherwise licensed as an\ninsurance producer to sell, solicit or negotiate that insurance in the\nstate where the insured maintains its principal place of business and\nthe contract of insurance insures risks located in that state;\n (9) a person who is not a resident of this state who sells, solicits\nor negotiates a contract of property/casualty insurance, as defined in\nparagraph six of subsection (x) of this section, of an insurer not\nauthorized to do business in this state, provided that: (A) the\ninsured's home state is a state other than this state; and (B) such\nperson is otherwise licensed to sell, solicit or negotiate excess line\ninsurance in the insured's home state; or\n (10) any person who has received a grant from and has been certified\nby the health benefit exchange established pursuant to section 1311 of\nthe affordable care act, 42 U.S.C. § 18031, to act as a navigator, as\nsuch term is used in 42 U.S.C. § 18031(i), including any person employed\nby a certified navigator, provided that the person: (A) has completed\nthe training required by the health benefit exchange; (B) does not sell\ninsurance; (C) does not engage in any activity with respect to insurance\nnot expressly permitted under 42 U.S.C. § 18031(i)(3) and regulations\nthereunder; and (D) does not receive any compensation for acting as a\nnavigator directly or indirectly from an insured, insurance producer, or\nan insurer.\n (d) In this article, "non-resident insurance agent" means an\nindividual who is a non-resident of this state and who is licensed or\nauthorized to act as an insurance agent in the state in which he\nresides, or in which he or the firm or association of which he is a\nmember or employee, or the corporation of which he is an officer,\ndirector, or employee maintains an office as an insurance agent.\n (e) In this article, "non-resident insurance broker", means an\nindividual who is a non-resident of this state and who is licensed or\nauthorized to act as an insurance broker in the state in which he\nresides, or in which he, or the firm or association of which he is a\nmember or employee, or the corporation of which he is an officer,\ndirector or employee, maintains an office as an insurance broker.\n (f) In this article, "reinsurance intermediary" means any person,\nfirm, association or corporation who acts as broker in soliciting,\nnegotiating or selling any reinsurance contract or binder, or acts as an\nagent in accepting any reinsurance contract or binder on behalf of an\ninsurer, except that such term shall not include:\n (1) licensed attorneys at law of this state acting in their\nprofessional capacity as such;\n (2) regular salaried officers, employees or attorneys in fact of an\nauthorized insurer or of an underwriting office of such insurer while\nacting in their capacity as such in discharging the duties of their\nemployment or appointment;\n (3) licensed insurance agents acting within the scope of their agency\nauthority in the placement or acceptance of reinsurance on risks\nproduced or managed by such agents; or\n (4) licensed insurance brokers, in the placement of reinsurance on\nrisks produced by such brokers.\n (g) In this article, "adjuster" means any "independent adjuster" or\n"public adjuster" as defined below:\n (1) The term "independent adjuster" means any person, firm,\nassociation or corporation who, or which, for money, commission or any\nother thing of value, acts in this state on behalf of an insurer in the\nwork of investigating and adjusting claims arising under insurance\ncontracts issued by such insurer and who performs such duties required\nby such insurer as are incidental to such claims and also includes any\nperson who for compensation or anything of value investigates and\nadjusts claims on behalf of any independent adjuster, except that such\nterm shall not include:\n (A) any officer, director or regular salaried employee of an\nauthorized insurer or entity licensed pursuant to article forty-four of\nthe public health law providing comprehensive health service plans (as\nused in this paragraph, a "health maintenance organization"), or any\nmanager thereof, individual or corporate, or the manager, agent or\ngeneral agent of any department thereof, individual or corporate, or\nattorney in fact of any reciprocal insurer or Lloyds underwriter, or\nmarine underwriting office, unless acting as an auto body repair\nestimator as defined in subsection (j) of this section;\n (B) any officer, director or regular salaried employee of an insurer\nauthorized to write accident and health insurance, a corporation\nlicensed under article forty-three of this chapter (collectively, as\nused in this paragraph, a "health insurer") or a health maintenance\norganization, or any manager thereof, individual or corporate, when the\nclaim to be adjusted is issued or administered by another health insurer\nor health maintenance organization within the same holding company\nsystem as the health insurer or health maintenance organization\nadjusting the claim;\n (C) any officer, director or regular salaried employee of an article\nfifteen holding company or a controlled person within such holding\ncompany system providing administrative services within that holding\ncompany, or any manager thereof, individual or corporate, when the claim\nto be adjusted is submitted for payment under a health benefit plan that\nis issued or administered by a health insurer or health maintenance\norganization within that same holding company system;\n (D) any officer, director or regular salaried employee of an\nauthorized insurer that is licensed to write the kind of insurance to be\nadjusted, or any manager thereof, individual or corporate, when the\nclaim to be adjusted is pursuant to a policy that is issued or\nadministered by another insurer within the same holding company system\nas the authorized insurer adjusting the claim, unless acting as an auto\nbody repair estimator as defined in subsection (j) of this section;\n (E) any officer, director or regular salaried employee of an\nauthorized life insurance company, or any manager thereof, individual or\ncorporate, or the manager, agent or general agent of any department\nthereof, individual or corporate, when the claim to be adjusted is\nsubmitted under an insurance contract issued by another insurer and the\nclaim: (i) is within the scope of a contract of reinsurance between the\ntwo insurers for all of the underlying risks and none of the underlying\nrisks are later reinsured back to the ceding insurer; and (ii) relates\nto a kind of insurance that the authorized life insurance company\nadjusting the claim is licensed to write;\n (F) any adjustment bureau or association owned and maintained by\ninsurers to adjust or investigate losses, or any regular salaried\nemployee or manager thereof who devotes substantially all of his time to\nthe business of such bureau or association, unless acting as an auto\nbody repair estimator as defined in subsection (j) of this section;\n (G) any licensed agent of an authorized insurer who adjusts losses for\nsuch insurer solely under policies issued through his or its agency,\nprovided the agent receives no compensation for such services in excess\nof fifty dollars per loss adjusted;\n (H) any licensed attorney at law of this state;\n (I) any average adjuster or adjuster of maritime losses; or\n (J) any agent or other representative of an insurer authorized to\nissue life and annuity contracts, provided he receives no compensation\nfor such services.\n (2) "Public adjuster" means any person, firm, association or\ncorporation who, or which, for money, commission or any other thing of\nvalue, acts or aids in any manner on behalf of an insured in negotiating\nfor, or effecting, the settlement of a claim or claims for loss or\ndamage to property of the insured in this state caused by, or resulting\nfrom, any of the risks as enumerated in paragraphs four, five, six,\nseven, eight, nine and ten and subparagraphs (B) and (C) of paragraph\ntwenty of subsection (a) of section one thousand one hundred thirteen of\nthis chapter, not including loss or damage to persons under subparagraph\n(B) of paragraph twenty of subsection (a) of such section or who, or\nwhich, advertises for, or solicits employment as an adjuster of such\nclaims, and shall also include any person who, for money, commission or\nany other thing of value, solicits, investigates, or adjusts such claims\non behalf of any such public adjuster, except that such term shall not\ninclude:\n (A) any employee, agent or other representative of any authorized\ninsurer who acts as such in the adjustment of any claim or any licensed\ninsurance broker who acts as an adjuster for a client of such broker,\nwithout any compensation for such services as adjuster if such insurer's\nrepresentative or such licensed insurance broker does not advertise or\npublicly solicit the adjustment of claims in such a way as is likely to\nmislead the public into believing that he is offering his services as a\npublic adjuster;\n (B) any licensed attorney at law of this state who acts or aids in\nadjusting insurance claims as an incident to the practice of his\nprofession and who does not advertise himself as a public adjuster;\n (C) any licensed insurance broker who acts as an adjuster with respect\nto any loss involving insurance contracts under which he was the broker\nof record in placing the insurance, whether or not designated in writing\nto act for the insured; or\n (D) any other licensed insurance broker who has been designated to act\nfor the insured in writing before a loss occurs.\n (h) In this chapter, "licensed insurance broker," means an insurance\nbroker who is the licensee or a sub-licensee named in a license issued\nor renewed pursuant to the provisions of section two thousand one\nhundred four of this article and in full force and effect.\n (i) In this chapter, "limited licensee" shall mean a person authorized\nto sell certain coverages relating to the rental of motor vehicles\npursuant to the provisions of section two thousand one hundred\nthirty-one of this article.\n (j) In this article, "auto body repair estimator" means any officer,\ndirector or regular salaried employee of an authorized insurer or of any\nadjustment bureau or association owned and maintained by insurers, who\nwrites, or who directly supervises the writing of, any motor vehicle\nbody repair estimate in this state, on behalf of such insurer in the\nwork of diagnosing or estimating motor vehicle repair costs or\nprocedures relative to appraising, investigating or adjusting claims for\nmotor vehicle body repair work pursuant to an insurance contract.\n (k) In this article, "insurance producer" means an insurance agent,\ntitle insurance agent, insurance broker, reinsurance intermediary,\nexcess lines broker, or any other person required to be licensed under\nthe laws of this state to sell, solicit or negotiate insurance. Such\nterm shall not include:\n (1) an officer, director or employee of a licensed insurer, fraternal\nbenefit society or health maintenance organization or of a licensed\ninsurance producer, provided that the officer, director or employee does\nnot receive any commission on policies written or sold to insure risks\nresiding, located or to be performed in this state and:\n (A) the officer, director or employee's activities are executive,\nadministrative, managerial, clerical or a combination of these, and are\nonly indirectly related to the sale, solicitation or negotiation of\ninsurance; or\n (B) the officer, director or employee's function relates to\nunderwriting, loss control, inspection or the processing, adjusting,\ninvestigating or settling of a claim on a contract of insurance; or\n (C) the officer, director or employee is acting in the capacity of a\nspecial agent or agency supervisor assisting licensed insurance\nproducers where the person's activities are limited to providing\ntechnical advice and assistance to licensed insurance producers and do\nnot include the sale, solicitation or negotiation of insurance;\n (2) employees of insurers, fraternal benefit societies or health\nmaintenance organizations or organizations employed by insurers,\nfraternal benefit societies or health maintenance organizations who are\nengaging in the inspection, rating or classification of risks, or in the\nsupervision of the training of licensed insurance producers and who are\nnot individually engaged in the sale, solicitation or negotiation of\ninsurance;\n (3) any agent or representative of a fraternal benefit society, other\nthan agents representing societies governed by section four thousand\nfive hundred twenty-seven of this chapter, who devotes, or intends to\ndevote, less than fifty percent of the person's time to the\nsolicitation, negotiation or sale of insurance contracts for fraternal\nbenefit societies and who receives or intends to receive any commission\nor other compensation directly dependent on the amount of insurance,\nprovided that any person who in the preceding calendar year has\nsolicited, negotiated or sold any of the following contracts of\ninsurance on behalf of a fraternal benefit society is presumed to have\ndevoted, or intended to devote, fifty percent of the person's time to\nthe solicitation, negotiation or sale of insurance contracts:\n (A) life insurance contracts that, in the aggregate, exceed two\nhundred thousand dollars of coverage for all lives insured for the\npreceding calendar year;\n (B) a permanent life insurance contract offering more than ten\nthousand dollars of coverage on an individual life;\n (C) a term life insurance contract offering more than fifty thousand\ndollars of coverage on an individual life;\n (D) any insurance contracts other than life that the fraternal benefit\nsociety may write that insure the individual lives of more than\ntwenty-five persons;\n (E) any variable life insurance or variable annuity contract; or\n (4) any service contract provider or any administrator or person\ndesignated by a service contract provider who in this state markets,\nsells, offers for sale, issues, makes, proposes to make or administer\nservice contracts pursuant to article seventy-nine of this chapter;\n (5) a person who secures and furnishes information for the purpose of\ngroup life insurance, group property/casualty insurance, group\nannuities, group or blanket accident and health insurance; or for the\npurpose of enrolling individuals under plans, issuing certificates under\nplans or otherwise assisting in administering plans; or performs\nadministrative services related to mass marketed property/casualty\ninsurance, where no commission is paid to the person for the service;\n (6) an employer or association or its officers, directors, employees,\nor the trustees of an employee trust plan, to the extent that the\nemployers, officers, employees, directors or trustees are engaged in the\nadministration or operation of a program of employee benefits for the\nemployer's or association's own employees or the employees of its\nsubsidiaries or affiliates, which program involves the use of insurance\nissued by an insurer, fraternal benefit society or health maintenance\norganization, as long as the employers, associations, officers,\ndirectors, employees or trustees are not in any manner compensated,\ndirectly or indirectly, by the company issuing the contracts;\n (7) a person whose activities in this state are limited to advertising\nwithout the intent to solicit insurance in this state through\ncommunications in printed publications or other forms of electronic mass\nmedia whose distribution is not limited to residents of the state,\nprovided that the person does not sell, solicit or negotiate insurance\nthat would insure risks residing, located or to be performed in this\nstate;\n (8) a person who is not a resident of this state who sells, solicits\nor negotiates a contract of insurance for commercial property/casualty\nrisks to an insured with risks located in more than one state insured\nunder that contract, provided that such person is otherwise licensed as\nan insurance producer to sell, solicit or negotiate that insurance in\nthe state where the insured maintains its principal place of business\nand the contract of insurance insures risks located in that state;\n (9) any salaried full-time employee who counsels or advises his or her\nemployer relative to the insurance interests of the employer or of the\nsubsidiaries or business affiliates of the employer, provided that the\nemployee does not sell or solicit insurance or receive a commission;\n (10) a person who is not a resident of this state who sells, solicits\nor negotiates a contract of property/casualty insurance, as defined in\nparagraph six of subsection (x) of this section, of an insurer not\nauthorized to do business in this state, provided that: (A) the\ninsured's home state is a state other than this state; and (B) such\nperson is otherwise licensed to sell, solicit or negotiate excess line\ninsurance in the insured's home state; or\n (11) any person who has received a grant from and has been certified\nby the health benefit exchange established pursuant to section 1311 of\nthe affordable care act, 42 U.S.C. § 18031 to act as a navigator, as\nsuch term is used in 42 U.S.C. § 18031(i), including any person employed\nby a certified navigator, provided that the person: (A) has completed\nthe training required by the health benefit exchange; (B) does not sell\ninsurance; (C) does not engage in any activity with respect to insurance\nnot expressly permitted under 42 U.S.C. § 18031 (i) (3) and regulations\nthereunder; and (D) does not receive any compensation for acting as a\nnavigator directly or indirectly from an insured, insurance producer, or\nan insurer.\n (l) In this article, "home state" means the District of Columbia or\nany state or territory of the United States in which an insurance\nproducer maintains his, her or its principal place of residence or\nprincipal place of business and is licensed to act as an insurance\nproducer.\n (m) In this article, "negotiate" or "negotiation" means the act of\nconferring directly with or offering advice directly to a purchaser or\nprospective purchaser of a particular contract of insurance concerning\nany of the substantive benefits, terms or conditions of the contract,\nprovided that the person engaged in that act either sells insurance or\nobtains insurance from licensed insurers, fraternal benefit societies or\nhealth maintenance organizations for purchasers.\n (n) In this article, "sell" or "sale" means to exchange a contract of\ninsurance by any means, for money or its equivalent, on behalf of a\nlicensed insurer, fraternal benefit society or health maintenance\norganization.\n (o) In this article, "solicit" or "solicitation" means attempting to\nsell insurance or asking or urging a person to apply for a particular\nkind of insurance from a particular licensed insurer, fraternal benefit\nsociety or health maintenance organization.\n (p) In this article, "business entity" means a corporation,\nassociation, partnership, limited liability company, limited liability\npartnership or other legal entity.\n (q) In this article, "person" means an individual or a business\nentity.\n (r) In this article, "line of authority" means any of the following:\n (1) life: insurance coverage on human lives including benefits of\nendowment and annuities, and may include benefits in the event of death\nor dismemberment by accident and benefits for disability income;\n (2) accident and health or sickness: insurance coverage for sickness,\nbodily injury or accidental death and may include benefits for\ndisability income;\n (3) property: insurance coverage for the direct or consequential loss\nor damage to property of every kind;\n (4) casualty: insurance coverage against legal liability, including\nthat for death, injury or disability or damage to real or personal\nproperty;\n (5) variable life and variable annuity products: insurance coverage\nprovided under variable life insurance contracts and variable annuities;\n (6) personal lines: property/casualty insurance coverage sold to\nindividuals and families for primarily noncommercial purposes; and\n (7) any other line of insurance permitted pursuant to this chapter.\n (s) In this article, "controlled person" shall have the meaning set\nforth in paragraph five of subsection (a) of section one thousand five\nhundred one of this chapter.\n (t) In this article, "holding company" shall have the meaning set\nforth in paragraph three of subsection (a) of section one thousand five\nhundred one of this chapter.\n (u) In this article, "holding company system" shall have the meaning\nset forth in paragraph six of subsection (a) of section one thousand\nfive hundred one of this chapter.\n (v) In this article, "life settlement broker" shall have the meaning\ncontained in subsection (j) of section seven thousand eight hundred two\nof this chapter.\n (w) In this article, "state" means the District of Columbia or any\nstate or territory of the United States.\n (x) In this article, with respect to excess line insurance and excess\nline brokers:\n (1) With respect to an insured's home state, "affiliated group" means\nany group of entities that are all affiliated. For the purposes of this\nparagraph:\n (A) "affiliate" means, with respect to an insured, any entity that\ncontrols, is controlled by, or is under common control with the insured;\nand\n (B) an entity has control over another entity if the entity:\n (i) directly or indirectly or acting through one or more other persons\nowns, controls, or has the power to vote twenty-five percent or more of\nany class of voting securities of the other entity; or\n (ii) controls in any manner the election of a majority of the\ndirectors or trustees of the other entity;\n (2) "Exempt commercial purchaser" means any person purchasing\ncommercial insurance that, at the time of placement, meets the following\nrequirements:\n (A) the person employs or retains a qualified risk manager to\nnegotiate insurance coverage;\n (B) the person has paid aggregate nationwide commercial\nproperty/casualty insurance premiums in excess of one hundred thousand\ndollars in the immediately preceding twelve months; and\n (C) (i) the person meets at least one of the following criteria:\n (I) the person possesses a net worth in excess of twenty million\ndollars, as such amount is adjusted pursuant to item (ii) of this\nsubparagraph;\n (II) the person generates annual revenues in excess of fifty million\ndollars, as such amount is adjusted pursuant to item (ii) of this\nsubparagraph;\n (III) the person employs more than five hundred full-time or full-time\nequivalent employees per individual insured or is a member of an\naffiliated group employing more than one thousand employees in the\naggregate;\n (IV) the person is a not-for-profit organization or public entity\ngenerating annual budgeted expenditures of at least thirty million\ndollars, as such amount is adjusted pursuant to item (ii) of this\nsubparagraph; or\n (V) the person is a municipality with a population in excess of fifty\nthousand persons;\n (ii) Effective on the fifth January first occurring after July\ntwenty-first, two thousand ten and each fifth January first occurring\nthereafter, the amounts in clauses (I), (II), and (IV) of item (i) of\nthis subparagraph shall be adjusted to reflect the percentage change for\nsuch five-year period in the Consumer Price Index for All Urban\nConsumers published by the Bureau of Labor Statistics of the Unites\nStates Department of Labor;\n (3) "Insured's home state" means:\n (A) the state in which an insured maintains its principal place of\nbusiness or, in the case of an individual, the individual's principal\nresidence;\n (B) if one hundred percent of the insured risk is located outside of\nthe state referred to in subparagraph (A) of this paragraph, then the\nstate to which the greatest percentage of the insured's taxable premium\nfor that insurance contract is allocated;\n (C) if more than one insured from an affiliated group are named\ninsureds on a single insurance contract, then the insured's home state,\nas determined pursuant to subparagraph (A) of this paragraph, of the\nmember of the affiliated group that has the largest percentage of\npremium attributed to it under such insurance contract; or\n (D) in the case of a group policy:\n (i) when the group policyholder pays one hundred percent of the\npremium from its own funds, then the insured's home state, as determined\npursuant to subparagraph (A) of this paragraph, of the group\npolicyholder; or\n (ii) when the group policyholder does not pay one hundred percent of\nthe premium from its own funds, then the home state, as determined\npursuant to subparagraph (A) of this paragraph, of the group member;\n (4) With respect to determining an insured's home state, "principal\nplace of business" means the state where:\n (A) the insured maintains its headquarters and where the insured's\nhigh-level officers direct, control, and coordinate the business\nactivities; or\n (B) if the insured's high-level officers direct, control, and\ncoordinate the business activities in more than one state, or if the\ninsured's principal place of business is located outside any state, then\nthe state to which the greatest percentage of the insured's taxable\npremium for that insurance contract is allocated;\n (5) With respect to determining an insured's home state, "principal\nresidence" means the state:\n (A) where the individual resides for the greatest number of days\nduring a calendar year; or\n (B) if the insured's principal residence is located outside any state,\nthe state to which the greatest percentage of the insured's taxable\npremium for that insurance contract is allocated;\n (6) "Property/casualty insurance" means any kind of insurance as\nspecified in subsection (a) of section one thousand one hundred thirteen\nof this chapter, except insurance issued pursuant to paragraph one, two,\nthree, fifteen, eighteen or thirty-one of subsection (a) of section one\nthousand one hundred thirteen of this chapter or insurance substantially\nsimilar thereto; and\n (7) With respect to an exempt commercial purchaser, "qualified risk\nmanager" means, with respect to a policyholder of commercial insurance,\na person who meets all of the following requirements:\n (A) the person is an employee of, or third-party consultant retained\nby, the commercial policyholder;\n (B) the person provides skilled services in loss prevention, loss\nreduction, or risk and insurance coverage analysis, and purchase of\ninsurance;\n (C) the person:\n (i)(I) has a bachelor's degree or higher from an accredited college or\nuniversity in risk management, business administration, finance,\neconomics, or any other field determined by the superintendent to\ndemonstrate minimum competence in risk management; and\n (II)(aa) has three years of experience in risk financing, claims\nadministration, loss prevention, risk and insurance analysis, or\npurchasing commercial lines of insurance; or\n (bb) has:\n (aaa) a designation as a chartered property and casualty underwriter\n(in this clause referred to as a "CPCU") issued by the American\nInstitute for CPCU/Insurance Institute of America;\n (bbb) a designation as an associate in risk management (ARM) issued by\nthe American Institute for CPCU/Insurance Institute of America;\n (ccc) a designation as certified risk manager (CRM) issued by the\nNational Alliance for Insurance Education & Research;\n (ddd) a designation as a Risk and Insurance Management Society (RIMS)\nfellow (RF) issued by the Global Risk Management Institute; or\n (eee) any other designation, certification, or license determined by\nthe superintendent to demonstrate minimum competency in risk management;\n (ii) (I) has at least seven years of experience in risk financing,\nclaims administration, loss prevention, risk and insurance coverage\nanalysis, or purchasing commercial lines of insurance; and\n (II) has any one of the designations specified in subclauses (aaa)\nthrough (eee) of subitem (bb) of clause (II) of item (i) of this\nsubparagraph;\n (iii) has at least ten years of experience in risk financing, claims\nadministration, loss prevention, risk and insurance coverage analysis,\nor purchasing commercial lines of insurance; or\n (iv) has a graduate degree from an accredited college or university in\nrisk management, business administration, finance, economics, or any\nother field determined by the superintendent to demonstrate minimum\ncompetence in risk management.\n (y)(1) In this chapter, "title insurance agent" means any authorized\nor acknowledged agent of a title insurance corporation, and any subagent\nor other representative of such an agent, who or which for commission,\ncompensation, or any other thing of value, performs the following acts\nin conjunction with the issuance of a title insurance policy:\n (A) sells, or negotiates the sale of a title insurance policy;\n (B) evaluates the insurability of title, based upon the performance or\nreview of a title search; and\n (C) performs one or more of the following functions:\n (i) collects, remits or disburses title insurance premiums, escrows or\nother related funds;\n (ii) prepares, amends, marks up or delivers a title insurance\ncommitment or certificate of title for the purpose of the issuance of a\ntitle insurance policy by a title insurance corporation;\n (iii) prepares, amends or delivers a title insurance policy on behalf\nof a title insurance corporation; or\n (iv) negotiates the clearance of title exceptions, in connection with\nthe issuance of a title insurance policy.\n (2) Such term shall not include any regular salaried officer or\nemployee of an authorized title insurance corporation or of a licensed\ntitle insurance agent, who does not receive a commission or other\ncompensation for services, which commission or other compensation is\ndirectly dependent upon the amount of title insurance business done.\n