§ 2103 — Insurance agents; licensing

New York § 2103

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

Text

§ 2103. Insurance agents; licensing. (a) The superintendent may issue\na license to any person, firm or corporation who or which has complied\nwith the requirements of this chapter, authorizing such licensee to act\nas an insurance agent with respect to the lines of authority for life\ninsurance, variable life and variable annuity products, or accident and\nhealth insurance and sickness or any other line of authority deemed to\nbe similar by the superintendent, including for this purpose, health\nmaintenance organization contracts, legal services insurance or with\nrespect to any combination of the above, as specified in such license,\non behalf of any insurer, fraternal benefit society or health\nmaintenance organization, which is authorized to do such kind or kinds\nof insurance or health maintenance organization business in this state.\n (b) The superintendent may issue a license to any person, firm,\nassociation or corporation who or which has complied with the\nrequirements of this chapter, authorizing the licensee to act as agent\nof any authorized insurer, other than an insurer specified in subsection\n(b) of section two thousand one hundred fifteen of this article, with\nrespect to the lines of authority for accident and health or sickness,\nproperty, casualty, personal lines or any other line of authority\ngranted other than life, and variable life and variable annuity\nproducts, which such insurer is authorized to do in this state.\n (c) Any such license issued to a firm or association shall authorize\nonly the members thereof, named in such license as sub-licensees, to act\nindividually as agents thereunder, and any such license issued to a\ncorporation shall authorize only the officers and directors thereof,\nnamed in such license as sub-licensees, to act individually as agents\nthereunder. Every sub-licensee, acting as insurance agent pursuant to\nsuch a license shall be authorized so to act only in the name of the\nlicensee.\n (d) Every individual applicant for a license under this section and\nevery proposed sub-licensee shall be eighteen years of age or over at\nthe time of the issuance of such license.\n (e) Before any original insurance agent's license is issued there\nshall be on file in the office of the superintendent an application by\nthe prospective licensee in such form or forms and supplements, and\ncontaining information the superintendent prescribes and for each\nbusiness entity, the sub-licensee or sub-licensees named in the\napplication shall be designated responsible for the business entity's\ncompliance with the insurance laws, rules and regulations of this state.\n (f) (1) The superintendent shall, in order to determine the competency\nof every individual applicant and of every proposed sub-licensee to have\nthe kind of license applied for, require such individual to submit to a\npersonal written examination and to pass the same to the satisfaction of\nthe superintendent. Such examination shall be held at such times and\nplaces as the superintendent shall from time to time determine. Every\nindividual applying to take any written examination shall, at the time\nof applying therefor, pay to the superintendent, or, at the discretion\nof the superintendent, directly to any organization that is under\ncontract to provide examination services, an examination fee of an\namount which is the actual documented administrative cost of conducting\nsaid qualifying examination as certified by the superintendent from time\nto time. An examination fee represents an administrative expense and is\nnot refundable. The superintendent may accept, in lieu of any such\nexamination, the result of any previous written examination, given by\nthe superintendent, which in his judgment is equivalent to the\nexamination for which it is substituted.\n (2) The superintendent may from time to time make reasonable\nclassifications of the kinds of insurance and may prescribe the\nfollowing types of examinations:\n (A) For individuals seeking to qualify to obtain a license under\nsubsection (a) of this section, one examination adapted to test the\nqualifications for a life insurance agent's license, another adapted to\ntest the qualifications for an accident and health insurance agent's\nlicense and another adapted to test the qualifications for a legal\nservices insurance license. Each such individual shall be required to\npass the type or types of examination prescribed by the superintendent\nfor the line or lines of authority, as specified in subsection (a) of\nthis section, for which the license is sought. No individual shall be\ndeemed qualified to take the examination or examinations unless he shall\nhave successfully completed a course or courses, approved as to method\nand content by the superintendent, covering the principal branches and\ncontracts of life insurance, annuity contracts, disability insurance,\naccident and health insurance and related insurance and requiring not\nless than forty hours of classroom work or the equivalent in\ncorrespondence work or similar instruction, provided, however, that, at\nthe discretion of the superintendent, insurance subject material may be\neliminated from course content, with a corresponding reduction in course\nhours, if an insurer is not authorized to transact such kind or kinds of\ninsurance in this state. Such course or courses either shall have been\ngiven by a degree conferring college or university which has, when such\ncourse is taken by such individual, a curriculum or curricula registered\nwith the state education department, whether such course be given as\npart of any such curricula or separately, or by any other institution or\nlife or accident and health insurer which maintains equivalent standards\nof instruction, and which shall have been approved for such purpose by\nthe superintendent.\n (B) For individuals seeking to qualify to obtain a license under\nsubsection (b) of this section, not more than six types of examinations,\neach adapted to test the qualifications of an individual with respect to\nthe kinds of insurance business specified in such classification. Every\nsuch individual shall be required to pass the type or types of\nexamination prescribed by the superintendent for the line or lines of\nauthority for which the license is sought. No individual shall be deemed\nqualified to take the examination unless he shall have successfully\ncompleted a course or courses, approved as to method and content by the\nsuperintendent, covering the principal branches of the insurance\nbusiness and requiring not less than ninety hours of classroom work or\nthe equivalent in correspondence work, a course offered over the\ninternet or a similar institution, in institutions of learning meeting\nthe standards prescribed by paragraph one of subsection (a) of section\ntwo thousand one hundred four of this article; provided, however, with\nrespect to a license issued pursuant to subsection (b) of this section\nfor a personal line of authority, there shall be required not less than\nforty hours of such classroom work or the equivalent in correspondence\nwork, a course offered over the internet or a similar institution.\n (3) The superintendent shall require that all written examinations\nrequest the applicant to set forth: (i) his or her full name, age,\nresidence address, business address and mailing address; (ii) the\napplicant's gender; (iii) the applicant's native language; (iv) the\napplicant's highest level of education achieved; and (v) the applicant's\nrace or ethnicity. This section of the examination shall include a clear\nand unambiguous statement that the applicant is not required to disclose\nhis or her race or ethnicity, gender, native language or level of\neducation, that he or she will not be penalized for failing to do so,\nand that the department will use this information solely for statistical\npurposes that will then be studied in order to ensure continued quality\nand fairness of the examination.\n (g) No such written examination shall be required:\n (1) as a prerequisite to the issuance of a baggage or accident and\nhealth insurance agent's license to any ticket selling agent or\nrepresentative of a railroad company, steamship company, carrier by air,\nor public bus carrier, who shall act thereunder as insurance agent only\nin reference to the issuance of baggage or accident insurance tickets\nprimarily for the purpose of covering risk of travel;\n (2) in the discretion of the superintendent, of any individual whose\nlicense has been revoked or suspended;\n (3) of any individual seeking to be named as a licensee or sub-\nlicensee, under subsection (a) hereof, to represent a fraternal benefit\nsociety as its agent;\n (4) in connection with any certificate of appointment for an\nadditional insurer, provided the certificate of appointment does not\ninclude any additional kind of insurance;\n (5) in the discretion of the superintendent, of any individual seeking\nto be named as a licensee or sub-licensee who is a non-resident\ninsurance agent;\n (6) of any person who received a license effective the first day of\nJuly, nineteen hundred eighty-seven to represent any assessment\ncorporation which was limited on that date to the kinds of insurance\nspecified in subsection (a) of section six thousand six hundred five of\nthis chapter, and whose license is limited to those kinds of insurance,\nin connection with any certificate of appointment to represent another\nsuch assessment corporation, provided the certificate of appointment\ndoes not include any additional kind of insurance.\n (7) of any applicant who has passed the written examination given by\nthe superintendent for an insurance agent's license and was licensed as\nsuch or of an applicant who was licensed as an insurance agent but did\nnot pass such an examination, provided the applicant applies within two\nyears following the date of termination of his license;\n (8) of any person who was appointed prior to the first day of July,\nnineteen hundred fifty-seven, to represent any domestic assessment\nco-operative property/casualty insurance company which shall be licensed\nto do the business permitted under subsection (b) of section six\nthousand six hundred five of this chapter, provided such person within\nthree months after that date files with the superintendent an\napplication for a license in such form as the superintendent shall\nprescribe;\n (9) in the discretion of the superintendent, as to all or any part of\nthe written examination or the prerequisite minimum forty hour course\nspecified in subparagraph (A) of paragraph two of subsection (f) of this\nsection, of any individual seeking to be named a licensee or\nsub-licensee, upon whom has been conferred the Chartered Life\nUnderwriter (C.L.U.) or Chartered Life Underwriter Associate designation\nby The American College;\n (10) in the discretion of the superintendent, as to all or any part of\nthe written examination or the prerequisite minimum ninety hour course\nspecified in subparagraph (B) of paragraph two of subsection (f) of this\nsection, of any individual seeking to be named a licensee or\nsublicensee, upon whom has been conferred the Chartered Property\nCasualty Underwriter (C.P.C.U.) designation by the American Institute\nfor Property and Liability Underwriters; or\n (11) of any individual who applies for an insurance agent license in\nthis state who was previously licensed for the same line or lines of\nauthority in another state, provided, however, that the applicant's home\nstate grants non-resident licenses to residents of this state on the\nsame basis. Such individual shall also not be required to complete any\nprelicensing education. This exemption is only available if the person\nis currently licensed in that state or if the application is received\nwithin ninety days of the date of cancellation of the applicant's\nprevious license and if the prior state issues a certification that, at\nthe time of cancellation, the applicant was in good standing in that\nstate or the state's producer database records, maintained by the\nNational Association of Insurance Commissioners, its affiliates or\nsubsidiaries, indicate that the producer is or was licensed in good\nstanding for the line of authority requested. An individual or entity\nlicensed in another state who moves to this state shall make an\napplication within ninety days of establishing legal residence to become\na resident licensee. No prelicensing education or examination shall be\nrequired of that person to obtain any line of authority previously held\nin the prior state except where the superintendent determines otherwise\nby regulation.\n (h) The superintendent may refuse to issue any insurance agent's\nlicense if, in his judgment, the proposed licensee or any sub-licensee\nis not trustworthy and competent to act as such agent, or has given\ncause for the revocation or suspension of such a license, or has failed\nto comply with any prerequisite for the issuance of such license.\n (i) (1) The superintendent may require from every applicant and from\nevery proposed sub-licensee, before or after issuing any such license, a\nstatement subscribed and affirmed as true by the applicant under the\npenalties of perjury as to the ownership of any interest in an applicant\nfirm, association or corporation and as to facts indicating whether any\napplicant has been by reason of an existing license, if any, or will be\nby reason of the license applied for, receiving any benefit or advantage\nin violation of section two thousand three hundred twenty-four of this\nchapter, and also as to such facts as he may deem pertinent to the\nrequirements of this subsection. The superintendent may refuse to issue,\nsuspend or revoke a license, as the case may be, to or of any applicant\nif he finds that such applicant has been or will be, as aforesaid,\nreceiving any benefit or advantage in violation of section two thousand\nthree hundred twenty-four of this chapter, or if he finds that more than\nten percent of the aggregate net commissions, received during the twelve\nmonth period immediately preceding, if any, or to be received during the\nensuing twelve months, by the applicant, resulted or will result from\ninsurance on the property and risks:\n (A) of the spouse of an individual applicant; and of any corporation\nof which such individual applicant or his or her spouse or both own more\nthan fifty percent of the shares; and of any affiliated or subsidiary\ncorporations of such corporation; and of the members of any firm or\nassociation and their spouses, of which firm or association the\nindividual applicant or his or her spouse is a member;\n (B) of the members of an applicant firm or association and their\nrespective spouses, and of the owners of any interest in such firm or\nassociation and their respective spouses, and of any corporation of\nwhich such firm or association or the members or owners and their\nrespective spouses, either individually or in the aggregate, own more\nthan fifty percent of the shares, and of any affiliated or subsidiary\ncorporations of such corporation, and of any other firm and the members\nthereof and their respective spouses, of which other firm a member or\nmembers of the applicant firm or association and their respective\nspouses are members or owners; and\n (C) of the shareholders of an applicant corporation and their\nrespective spouses, and of any affiliated and subsidiary corporations of\nsuch applicant corporation, and of any subsidiary and affiliated\ncorporations of a corporation owning any interest in such applicant\ncorporation, and of any firm or association and the members thereof and\ntheir respective spouses which either individually or collectively own\nmore than fifty percent of the shares of the applicant corporation, and\nof any corporation of which such firm or association and its members and\ntheir respective spouses, either individually or in the aggregate, own\nmore than fifty percent of the shares, and of any affiliated or\nsubsidiary corporation of such corporation.\n (2) Nothing herein disqualifies any applicant by reason of acts done\nor facts existing at a time when the same did not, under the law then in\nforce, constitute or contribute to constituting such a disqualification.\n (3) The word "applicant" in this subsection, includes a licensee or\nsub-licensee.\n (j) (1) Any license currently in force issued to an insurance agent of\nany insurer, fraternal benefit society or health maintenance\norganization pursuant to subsection (a) of this section shall be deemed\nterminated as of June thirtieth, nineteen hundred eighty-five. Any\nlicense currently in force issued to an insurance agent of any insurer\npursuant to subsection (b) of this section without an expiration date\nshall be deemed terminated as of June thirtieth, nineteen hundred\neighty-six.\n (2) Every license issued to a business entity pursuant to subsection\n(a) of this section shall expire on June thirtieth of odd numbered\nyears. Every license issued to a business entity pursuant to subsection\n(b) of this section shall expire on June thirtieth of odd numbered\nyears. On and after January first, two thousand seven, every license\nissued pursuant to this section to an individual, and every license in\neffect prior to January first, two thousand seven that was issued\npursuant to this section to an individual, who was born in an odd\nnumbered year, shall expire on the individual's birthday in each odd\nnumbered year. On and after January first, two thousand seven, every\nlicense issued pursuant to this section to an individual, and every\nlicense in effect prior to January first, two thousand seven that was\nissued pursuant to this section to an individual, who was born in an\neven numbered year, shall expire on the individual's birthday in each\neven numbered year. Every such license may be renewed for the ensuing\nperiod of twenty-four months upon the filing of an application in\nconformity with this subsection. The superintendent may issue such rules\nand regulations as the superintendent deems necessary to implement the\nterms of this subsection including regulations providing that, prior to\nJuly first, two thousand twenty-three, the registration fees and\ncontinuing education requirements for the renewal of any license issued\nto a business entity pursuant to this subsection for a period that is\nmore than twenty-four months may be increased in proportion to the\nlength of the period of licensure.\n (3) In the case of a license issued to a new applicant, the\nsuperintendent may issue a license for a term of more than two years,\nprovided however, such term shall not exceed thirty months.\n (4) Any license shall be considered in good standing within the\nlicense term unless:\n (A) revoked or suspended by the superintendent pursuant to this\narticle.\n (B) all certificates of appointment have been terminated by the\ninsurers, at which time the license becomes inactive.\n (C) if at the expiration date of the license term, provided the\nlicense was in good standing during the term, the licensee fails to file\na renewal application.\n (5) Before the renewal of any insurance agent's license shall be\nissued, the following requirements shall have been met:\n (A) The licensee shall have filed a completed renewal application in\nsuch form or forms and supplements thereto and containing such\ninformation as the superintendent may prescribe.\n (B) The licensee shall have paid such fees as are prescribed in this\nsection.\n (6) If the agent's license is deemed to be in an inactive status at\nthe time of renewal, a renewal application may be completed and filed\nwith the superintendent for the ensuing term of a license; however, if a\ncertificate of appointment is not filed on the agent's behalf within the\nterm of the renewal, the license will expire and will not be renewed at\nthe end of the license term. During the term of the license for which no\ncertificate of appointment was on file, it shall be deemed to be\ninactive.\n (7) If an application for a renewal license shall have been filed with\nthe superintendent before the expiration of such license, the license\nsought to be renewed shall continue in full force and effect either\nuntil the issuance by the superintendent of the renewal license applied\nfor or until five days after the superintendent shall have refused to\nissue such renewal license and shall have given notice of such refusal\nto the applicant and to each proposed sub-licensee. Before refusing to\nrenew any such license, except on the ground of failure to pass a\nwritten examination, the superintendent shall notify the applicant of\nhis intention to do so and shall give such applicant a hearing.\n (8) (A) The superintendent may in issuing a renewal license dispense\nwith the requirements of a verified application by any individual\nlicensee or sub-licensee who, by reason of being engaged in any military\nservice for the United States, is unable to make personal application\nfor such renewal license, upon the filing of an application on behalf of\nsuch individual, in such form as the superintendent shall prescribe, by\nsome person or persons who in his judgment have knowledge of the facts\nand who make affidavit showing such military service and the inability\nof such insurance agent to make personal application.\n (B) An individual licensee or sub-licensee who is unable to comply\nwith license renewal procedures due to other extenuating circumstances,\nsuch as a long-term medical disability, may request a waiver of such\nprocedures, in such form as the superintendent shall prescribe. The\nlicensee or sub-licensee may also request a waiver of any examination\nrequirement or any other fine or sanction imposed for failure to comply\nwith renewal procedures.\n (9) In addition to any examination fee required by subsection (f) of\nthis section, there shall be paid to the superintendent for each\nindividual license applicant and each proposed sub-licensee the sum of\nforty dollars for each year or fraction of a year in which a license\nshall be valid. If, however, the license applicant or a proposed\nsub-licensee should withdraw the application or the superintendent\nshould deny the application before the license applied for is issued,\nthe superintendent may refund the fee paid by the applicant for the\nlicense applied for with the exception of any examination fees required\npursuant to subsection (f) of this section.\n (10) An application for the renewal of a license shall be filed with\nthe superintendent not less than sixty days prior to the date the\nlicense expires or the applicant shall be subject to a further fee for\nlate filing of ten dollars.\n (11) No license fee shall be required of any person who served as a\nmember of the armed forces of the United States at any time and who (A)\nshall have been discharged therefrom, under conditions other than\ndishonorable, or (B) has a qualifying condition, as defined in section\none of the veterans' services law, and has received a discharge other\nthan bad conduct or dishonorable from such service, or (C) is a\ndischarged LGBT veteran, as defined in section one of the veterans'\nservices law, and has received a discharge other than bad conduct or\ndishonorable from such service, in a current licensing period, for the\nduration of such period.\n (12) Except where a corporation, association or firm licensed as an\ninsurance agent is applying to add a sub-licensee, or the date of the\nexpiration of the license is changed, there shall be no fee required for\nthe issuance of an amended license.\n (13) The license shall contain the licensee's name, address, personal\nidentification number, the date of issuance, the licensee's lines of\nauthority, the expiration date and any other information the\nsuperintendent deems necessary.\n (k) If the superintendent deems it necessary he may require any\nlicensed agent to submit a new application at any time.\n (l) Any licensee may at any time while such license is in force apply\nto the superintendent for an additional license authorizing such\nlicensee, and the sub-licensees named in such existing license, to act\nas insurance agents for additional insurers. The superintendent may,\nafter the requirements of this chapter have been complied with, issue\nsuch additional license.\n (m) An agent appointed for an insurer authorized to transact business\nin this state may transact business for any subsidiaries or affiliates\nof said insurer that are licensed in this state for the same line or\nlines of insurance without such insurers submitting additional\nappointments, provided a certified copy of a resolution adopted by the\nboard of directors of each of the insurers requesting such authority is\nfiled with the superintendent by each of the insurers and renewed and\nrefiled whenever deemed necessary by the superintendent. The resolution\nshall also designate the primary insurer for which all of the company's\nagents must be appointed pursuant to subsection (a) or (b) of this\nsection, and said appointment must be in full force and effect in order\nto transact business for any of the affiliated or subsidiary insurers.\n (n) Any insurance agent licensed pursuant to subsection (b) of this\nsection is hereby authorized while so licensed, to act in the sale,\nsolicitation or negotiation for an insurance contract providing solely\nfor disability benefits written to meet minimum requirements of article\nnine of the workers' compensation law.\n (o) The superintendent may issue a replacement for a currently in\nforce license which has been lost or destroyed. Before such replacement\nlicense shall be issued, there shall be on file in the office of the\nsuperintendent a written application for such replacement license,\naffirming under penalty of perjury that the original license has been\nlost or destroyed, together with a fee of fifteen dollars.\n