§ 2107 — Insurance consultants; licensing and duties

New York § 2107

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

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§ 2107. Insurance consultants; licensing and duties. (a) (1) The\nsuperintendent may issue an insurance consultant's license to any\nperson, firm, association or corporation who or which has complied with\nthe requirements of this chapter with respect to either: life insurance,\nmeaning all of those kinds of insurance authorized in paragraphs one,\ntwo and three of subsection (a) of section one thousand one hundred\nthirteen of this chapter; or general insurance, meaning all of those\nkinds of insurance authorized in paragraphs four through twenty-three of\nsuch subsection, as specified in such license.\n (2) Any such license issued to a firm or association shall authorize\nonly the members of such firm or association named in such license as\nsub-licensees to act individually as consultants thereunder, and any\nsuch license issued to a corporation shall authorize only the officers\nand directors thereof named in such license as sub-licensees to act\nindividually as consultants thereunder. Each sub-licensee named in such\nlicense must be qualified to obtain a license as an insurance\nconsultant, and for each such sub-licensee the fee specified in\nsubsection (b) of this section must be paid. Every sub-licensee acting\nindividually as a consultant pursuant to a license issued to a firm,\nassociation or corporation shall be authorized to act only in the name\nof such firm, association or corporation.\n (b) (1) Before an insurance consultant's license shall be issued or\nrenewed the prospective licensee shall properly file in the office of\nthe superintendent an application therefor in such form or forms and\nsupplements that the superintendent prescribes, and pay a fee of fifty\ndollars for each year or fraction of a year in which a license shall be\nvalid and pay an additional fee of fifty dollars for each year or\nfraction of a year in which a license shall be valid for each\nsub-licensee. Every consultant's license issued pursuant to this section\nto a business entity shall expire on the thirty-first day of March, with\nrespect to (A) life insurance in the odd year and (B) general insurance\nin the even year, next following the date of issue. On and after January\nfirst, two thousand seven, every license issued pursuant to this section\nto an individual consultant, and every license in effect prior to\nJanuary first two thousand seven that was issued pursuant to this\nsection to an individual consultant, who was born in an odd numbered\nyear, shall expire on the individual's birthday in each odd numbered\nyear. On and after January first, two thousand seven, every license\nissued pursuant to this section to an individual consultant, and every\nlicense in effect prior to January first, two thousand seven that was\nissued pursuant to this section to an individual consultant, who was\nborn in an even numbered year, shall expire on the individual's birthday\nin each even numbered year. Every license issued pursuant to this\nsection may be renewed for the ensuing period of twenty-four months upon\nthe filing of an application in conformity with this subsection. In the\ncase of a license issued to a new applicant, the superintendent may\nissue a license for a term of more than two years, provided however,\nsuch term shall not exceed thirty months.\n (2) (A) If an application for a renewal license shall have been filed\nwith the superintendent before the expiration of such license, the\nlicense sought to be renewed shall continue in full force and effect\neither until the issuance by the superintendent of the renewal license\napplied for or until five days after the superintendent shall have\nrefused to issue such renewal license and shall have given notice of\nsuch refusal to the applicant.\n (B) Before refusing to renew any such license, except on the ground of\nfailure to pass a written examination required pursuant to subsection\n(c) of this section, the superintendent shall notify the applicant of\nhis intention so to do and shall give such applicant a hearing.\n (c) (1) The superintendent shall, in order to determine the competency\nof every applicant for license as an insurance consultant, require such\napplicant to submit to and pass to his satisfaction a personal, written\nexamination concerning the kinds of insurance specified in paragraphs\none, two and three of subsection (a) of section one thousand one hundred\nthirteen of this chapter for a life insurance consultant's license and\nparagraphs four through twenty-three of such subsection for a general\ninsurance consultant's license. The fee for each such examination taken\nshall be fifty dollars.\n (2) The superintendent may accept, in lieu of any part or all of such\nexamination, the result of any previous written examination given by the\nsuperintendent, The American College, the American College of Property\nand Liability Underwriters, the Society of Actuaries, the Casualty\nActuarial Society, the American Academy of Actuaries or any similar\norganization which administers professional examinations.\n (d) The superintendent may refuse to issue an insurance consultant's\nlicense if, in his judgment, the applicant or any proposed sub-licensee\nis not trustworthy and competent to act as a consultant, or has given\ncause for revocation or suspension of such license, or has failed to\ncomply with any prerequisite for the issuance of such license.\n (e) No person licensed as an insurance consultant under this section\nmay be an executive in or employee of or own any shares which give him a\nsubstantial interest, direct or indirect, in any authorized insurer. No\nsuch consultant may recommend or encourage the purchase of insurance,\nannuities or securities from any authorized insurer in which any member\nof his immediate family holds an executive position or holds a\nsubstantial interest.\n (f) 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