senate Bill S5923

2013-2014 Legislative Session

Relates to the licensing of agents of authorized title insurance corporations; repealer

download bill text pdf

Sponsored By

Archive: Last Bill Status - In Committee


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed/Vetoed by Governor

do you support this bill?

Actions

view actions (2)
Assembly Actions - Lowercase
Senate Actions - UPPERCASE
Jan 08, 2014 referred to insurance
Aug 07, 2013 referred to rules

S5923 - Bill Details

See Assembly Version of this Bill:
A8202
Current Committee:
Law Section:
Insurance Law
Laws Affected:
Rpld §2101 sub§ (k) ¶4, amd Ins L, generally

S5923 - Bill Texts

view summary

Relates to the licensing of agents of authorized title insurance corporations.

view sponsor memo
BILL NUMBER:S5923

TITLE OF BILL: An act to amend the insurance law, in relation to the
licensing of agents of authorized title insurance corporations; and to
repeal certain provisions of such law relating thereto

PURPOSE:

To require persons acting as title agents in this state to obtain a
license from department of financial services and to adhere to the
requirements of the insurance law in the conduct of their businesses
as title agents.

SUMMARY OF PROVISIONS:

Sections 1 through 11 of the bill provide for a definition of "title
insurance agent" and add this definition to various sections of the
insurance law relating to insurance producers.

Section 12 of the bill adds a new section 2113 to the insurance law
prohibiting title agents from paying any percentage of the premium or
fees collected to any other agent. Agents are further prohibited from
accepting any payment or reimbursement of fees imposed by the
superintendent.

Section 13 and 14 provide for definitional changes.

Section 15 provides that title insurance corporations and agents are
required to file annual disclosure statements with the superintendent,
which shall remain protected and exempt from FOIL requests.

Section 16 provides attorneys are exempt from the continuing education
requirements otherwise applicable to title insurance agents.

Section 17 adds a new section 2139 to the insurance law to set forth
requirements and standards for the licensing-of title insurance
agents.

Section 18 adds a new section 2140 to the insurance law to subject
title insurance agents to continuing education requirements.

Sections 19 and 20 provide for definitional changes.

Section 21 provides for anti-inducement penalties.

Section 22 provides for definitional changes.

Section 23 provides the effective date.

JUSTIFICATION:

New York State is a state that permits persons to act as title
insurance agents but does not regulate and license these agents. The
proposed bill is intended to bring title insurance agents under a
licensing statute and the direct supervision of the New York State
Superintendent of Financial Services. Title insurance agents handle
large amounts of money on a daily basis Title agents collect and remit


premiums, hold and manage indemnity escrow accounts, mortgage and
transfer taxes and, on occasion, hold and disburse closing proceeds.
It is essential for the protection of the public that the insurance
law establish minimum standards of education and technical proficiency
as well as general rules for the conduct of the title insurance agency
business for all persons acting as title insurance agents. The
proposed bill imposes monetary and other penalties, including
suspension and revocation of an agent's license, for violations of the
insurance law.

LEGISLATIVE HISTORY:

New bill. Similar to S.4203 of 2010-11

FISCAL IMPLICATIONS:

The costs incurred by the department of financial services in
licensing and regulating title insurance agents will be offset by
licensing fees to be paid by applicants for such licenses and for
renewals thereof.

EFFECTIVE DATE:

180 days after becoming a law.

view full text
download pdf
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  5923

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                             August 7, 2013
                               ___________

Introduced  by  Sen.  SEWARD -- read twice and ordered printed, and when
  printed to be committed to the Committee on Rules

AN ACT to amend the insurance law,  in  relation  to  the  licensing  of
  agents  of  authorized  title  insurance  corporations;  and to repeal
  certain provisions of such law relating thereto

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section  1. The opening paragraph of subsection (k) of section 2101 of
the insurance law, as added by chapter 687  of  the  laws  of  2003,  is
amended to read as follows:
  In  this article, "insurance producer" means an insurance agent, TITLE
INSURANCE AGENT,  insurance  broker,  reinsurance  intermediary,  excess
lines broker, or any other person required to be licensed under the laws
of  this  state to sell, solicit or negotiate insurance. Such term shall
not include:
  S 2. Paragraph 4 of subsection (k) of section 2101  of  the  insurance
law  is  REPEALED and paragraphs 5, 6, 7, 8, 9, 10, 11 and 12 are renum-
bered paragraphs 4, 5, 6, 7, 8, 9, 10 and 11.
  S 3. Section 2101 of the insurance law is  amended  by  adding  a  new
subsection (y) to read as follows:
  (Y)  (1) IN THIS CHAPTER, "TITLE INSURANCE AGENT" MEANS ANY AUTHORIZED
OR ACKNOWLEDGED AGENT OF A TITLE INSURANCE CORPORATION, WHICH  EVALUATES
THE  TITLE  SEARCH  TO  DETERMINE  INSURABILITY  OF  TITLE  AND PERFORMS
SUBSTANTIALLY ALL OF THE FOLLOWING FUNCTIONS:
  (A) PREPARES AND ISSUES A TITLE INSURANCE COMMITMENT OR CERTIFICATE OF
TITLE FOR THE PURPOSE OF ISSUING A TITLE INSURANCE POLICY;
  (B) CLEARS UNDERWRITING EXCEPTIONS IN CONNECTION WITH THE ISSUANCE  OF
A TITLE INSURANCE POLICY;
  (C)  ITSELF OR BY ITS DESIGNEE MARKS UP THE TITLE INSURANCE COMMITMENT
OR CERTIFICATE OF TITLE TO BIND A TITLE INSURANCE CORPORATION;

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD11674-01-3

S. 5923                             2

  (D) PREPARES AND ISSUES A TITLE INSURANCE POLICY ON BEHALF OF A  TITLE
INSURANCE CORPORATION;
  (E) COLLECTS THE TITLE INSURANCE PREMIUM, A PORTION OF WHICH IS REMIT-
TED TO THE TITLE INSURANCE CORPORATION.
  (2)  NO  TITLE INSURANCE CORPORATION DOING BUSINESS IN THIS STATE, AND
NO AGENT OR OTHER REPRESENTATIVE THEREOF, SHALL PAY  ANY  PERCENTAGE  OF
THE TITLE INSURANCE PREMIUM OR FEES COLLECTED TO ANY PERSON, FIRM, ASSO-
CIATION  OR  CORPORATION  FOR PERFORMING ANY OF THE FUNCTIONS OF A TITLE
INSURANCE AGENT, EXCEPT TO A LICENSED TITLE INSURANCE AGENT.
  (3) SUCH TERM SHALL  NOT  INCLUDE  ANY  REGULAR  SALARIED  OFFICER  OR
EMPLOYEE  OF  AN AUTHORIZED TITLE INSURANCE CORPORATION OR OF A LICENSED
TITLE INSURANCE AGENT.
  S 4. Subparagraph (A) of paragraph 1 of subsection (a) of section 2102
of the insurance law, as amended by section 8 of part I of chapter 61 of
the laws of 2011, is amended to read as follows:
  (A) No person, firm, association or corporation shall act as an insur-
ance producer, insurance adjuster  OR  TITLE  INSURANCE  AGENT  or  life
settlement  broker  in  this  state without having authority to do so by
virtue of a license issued and in force pursuant to  the  provisions  of
this chapter.
  S  5. Subsection (a) of section 2109 of the insurance law, paragraph 3
as amended by chapter 687 of the laws of 2003, is  amended  to  read  as
follows:
  (a)  The  superintendent  may  issue  a  temporary  insurance  agent's
LICENSE, TITLE INSURANCE AGENT'S LICENSE or insurance broker's  license,
or  both,  AN  INSURANCE AGENT'S AND INSURANCE BROKER'S LICENSE, without
requiring the applicant to pass a written examination or to satisfy  the
requirements  of subsection (c) of section two thousand one hundred four
of this article except as to age, in the case of a license issued pursu-
ant to paragraph two [hereof]  OF  THIS  SUBSECTION,  in  the  following
cases:
  (1)  in the case of the death of a person who at the time of his death
was a licensed accident and health insurance agent under subsection  (a)
of  section  two  thousand one hundred three of this article, a licensed
insurance agent under subsection (b) of such section, A  LICENSED  TITLE
INSURANCE AGENT or a licensed insurance broker:
  (A)  to  the  executor or administrator of the estate of such deceased
agent or broker;
  (B) to a surviving next of kin of such deceased agent or broker, where
no administrator of his estate has been appointed and  no  executor  has
qualified under his duly probated will;
  (C) to the surviving member or members of a firm or association, which
at  the  time  of  the  death  of a member was such a licensed insurance
agent, LICENSED TITLE INSURANCE AGENT or licensed insurance broker; or
  (D) to an officer or director of a corporation upon the death  of  the
only  officer  or director who was qualified as a sub-licensee or to the
executor or administrator of the estate  of  such  deceased  officer  or
director;
  (2)  to any person who may be designated by a person licensed pursuant
to this chapter as an insurance  agent,  TITLE  INSURANCE  AGENT  or  an
insurance  broker,  or both AN INSURANCE AGENT AND INSURANCE BROKER, and
who is absent because of service in any branch of the  armed  forces  of
the  United  States,  including  a  partnership  or corporation which is
licensed pursuant to this chapter as an insurance agent, TITLE INSURANCE
AGENT or as an insurance broker, or both AN INSURANCE AGENT  AND  INSUR-
ANCE  BROKER,  in a case where the sub-licensee or all sub-licensees, if

S. 5923                             3

more than one, named in the license or licenses issued to such  partner-
ship or corporation is or are absent because of service in any branch of
the armed forces of the United States; and
  (3) to the next of kin of a person who has become totally disabled and
prevented  from pursuing any of the duties of his or her occupation, and
who at the commencement of his or her disability was a licensed accident
and health insurance agent under subsection (a) of section two  thousand
one  hundred  three  of  this  article, a licensed insurance agent under
subsection (b) of such section, A LICENSED TITLE INSURANCE  AGENT  or  a
licensed insurance broker.
  S 6. Subsection (c) of section 2109 of the insurance law is amended to
read as follows:
  (c)  Such  license  or  licenses shall authorize the person or persons
named therein to renew the business of the deceased, absent or  disabled
INSURANCE  agent, TITLE INSURANCE AGENT, or INSURANCE broker, or both AN
INSURANCE AGENT AND INSURANCE BROKER, as the case may be, or of the firm
or, in the case of a license issued pursuant to paragraph one  or  three
of  subsection (a) [hereof] OF THIS SECTION, the association whose busi-
ness is being continued thereunder, each such  agent,  broker,  firm  or
association  being  referred  to in this section as "original licensee",
expiring during the period in which such temporary license  or  licenses
are in force, to collect premiums due and payable to the original licen-
see  or,  in  the  case of a license issued pursuant to paragraph one of
subsection (a) [hereof] OF THIS SECTION, to his estate, and  to  perform
such  other  acts  as an insurance agent, TITLE INSURANCE AGENT or as an
insurance broker, or both AN INSURANCE AGENT AND  INSURANCE  BROKER,  as
the  case  may be, as are incidental to the continuance of the insurance
business of such original licensee.
  S 7. Paragraph 4 of subsection (e) of section 2109  of  the  insurance
law,  as  amended by chapter 687 of the laws of 2003, is amended to read
as follows:
  (4) No person or persons so licensed, EXCEPT  FOR  A  TITLE  INSURANCE
AGENT, shall, by virtue of such license, be authorized to solicit, nego-
tiate or sell new insurance.
  S  8.  Paragraph  3 of subsection (f) of section 2109 of the insurance
law is amended to read as follows:
  (3) No person so licensed, EXCEPT FOR A TITLE INSURANCE  AGENT,  shall
solicit new business under such license.
  S  9.  Paragraph  2 of subsection (g) of section 2109 of the insurance
law, as amended by chapter 687 of the laws of 2003, is amended  to  read
as follows:
  (2)  No  person  or  persons so licensed, EXCEPT FOR A TITLE INSURANCE
AGENT, shall, by virtue of such license, be authorized to solicit, nego-
tiate or sell new insurance.
  S 10. The section heading and subsections (a) and (b) of section  2110
of the insurance law, as amended by chapter 499 of the laws of 2009, are
amended to read as follows:
  Revocation  or  suspension of license of insurance producer, insurance
consultant, adjuster [or], life settlement  broker  OR  TITLE  INSURANCE
AGENT.    (a)  The  superintendent  may  refuse to renew, revoke, or may
suspend for a period the superintendent determines the  license  of  any
insurance  producer, TITLE INSURANCE AGENT, insurance consultant, adjus-
ter or life settlement broker, if, after notice and hearing, the  super-
intendent determines that the licensee or any sub-licensee has:
  (1)  violated any insurance laws, or violated any regulation, subpoena
or order of the superintendent or of another state's  insurance  commis-

S. 5923                             4

sioner,  or has violated any law in the course of his or her dealings in
such capacity;
  (2)  provided  materially incorrect, materially misleading, materially
incomplete or materially untrue information in the license application;
  (3) obtained or attempted to obtain  a  license  through  misrepresen-
tation or fraud;
  (4)(A) used fraudulent, coercive or dishonest practices;
  (B) demonstrated incompetence;
  (C) demonstrated untrustworthiness; or
  (D) demonstrated financial irresponsibility in the conduct of business
in this state or elsewhere;
  (5)  improperly  withheld,  misappropriated or converted any monies or
properties received in the course of business in  this  state  or  else-
where;
  (6)  intentionally  misrepresented  the terms of an actual or proposed
insurance contract, life settlement contract or application  for  insur-
ance;
  (7) has been convicted of a felony;
  (8)  admitted  or  been  found  to have committed any insurance unfair
trade practice or fraud;
  (9) had an  insurance  producer  license,  a  life  settlement  broker
license,  TITLE  INSURANCE  AGENT  LICENSE,  or  its equivalent, denied,
suspended or revoked in any other state, province, district or  territo-
ry;
  (10)  forged  another's  name  to an application for insurance or life
settlement contract or to any document related to an insurance  or  life
settlement transaction;
  (11) improperly used notes or any other reference material to complete
an  examination  for  an  insurance  license  or  life settlement broker
license;
  (12) knowingly accepted insurance business from an individual  who  is
not licensed;
  (13) failed to comply with an administrative or court order imposing a
child support obligation;
  (14)  failed to pay state income tax or comply with any administrative
or court order directing payment of state income tax;
  (15) while acting as a life settlement broker, failed to  protect  the
privacy  of  the  insured  or  owner  or  other person for whom the life
settlement broker was required to provide protection pursuant to article
seventy-eight of this chapter; or
  (16) ceased to meet the requirements for licensure under this chapter.
  (b) Before revoking or suspending the license of any insurance produc-
er, TITLE INSURANCE AGENT, life  settlement  broker  or  other  licensee
pursuant  to  the  provisions of this article, the superintendent shall,
except when proceeding pursuant to subsection (f) of this section,  give
notice  to  the  licensee  and  to every sub-licensee and shall hold, or
cause to be held, a hearing not less than ten days after the  giving  of
such notice.
  S  11.  Subsections  (a) and (d) of section 2112 of the insurance law,
subsection (a) as amended by  chapter  540  of  the  laws  of  1996  and
subsection  (d)  as  amended  by  chapter  687  of the laws of 2003, are
amended to read as follows:
  (a) Every insurer, fraternal benefit  society  or  health  maintenance
organization  doing  business  in this state shall file a certificate of
appointment in such form as the superintendent may prescribe in order to

S. 5923                             5

appoint insurance agents OR TITLE INSURANCE  AGENTS  to  represent  such
insurer, fraternal benefit society or health maintenance organization.
  (d)  Every  insurer,  fraternal  benefit society or health maintenance
organization or insurance producer or the authorized  representative  of
the  insurer, fraternal benefit society, health maintenance organization
or insurance producer doing business in this state  shall,  upon  termi-
nation  of the certificate of appointment as set forth in subsection (a)
of this section of any insurance agent OR TITLE INSURANCE AGENT licensed
in this state, or upon termination for cause for activities as set forth
in subsection (a) of section two thousand one hundred ten of this  arti-
cle,  of the certificate of appointment, of employment, of a contract or
other insurance business relationship with any insurance producer,  file
with  the superintendent within thirty days a statement, in such form as
the superintendent may prescribe, of the facts relative to  such  termi-
nation for cause. The insurer, fraternal benefit society, health mainte-
nance  organization, insurance producer or the authorized representative
of the insurer, fraternal benefit society, health maintenance  organiza-
tion  or  insurance  producer  shall  provide, within fifteen days after
notification has been sent to the superintendent, a copy of  the  state-
ment  filed with the superintendent to the insurance producer at his, or
her or  its  last  known  address  by  certified  mail,  return  receipt
requested,  postage  prepaid or by overnight delivery using a nationally
recognized carrier.  Every statement made pursuant  to  this  subsection
shall be deemed a privileged communication.
  S  12.  The  insurance  law is amended by adding a new section 2113 to
read as follows:
  S 2113. TITLE INSURANCE AGENTS;  PROHIBITED  PAYMENTS.  (A)  NO  TITLE
INSURANCE  AGENT  OR  ANY REPRESENTATIVE OF SUCH AGENT DOING BUSINESS IN
THIS STATE, SHALL PAY ANY PERCENTAGE OF THE TITLE INSURANCE  PREMIUM  OR
FEES  COLLECTED TO ANY OTHER TITLE INSURANCE AGENT OR ANY REPRESENTATIVE
OF SUCH AGENT.
  (B) A TITLE INSURANCE AGENT SHALL NOT DIRECTLY  OR  INDIRECTLY  ACCEPT
ANY  PAYMENT FOR OR REIMBURSEMENT OF ANY FEE, FINE OR PENALTY IMPOSED BY
THE SUPERINTENDENT ON THE TITLE INSURANCE AGENT PURSUANT TO  THIS  CHAP-
TER.
  S  13. The section heading and subsections (a) and (c) of section 2120
of the insurance law are amended to read as follows:
  Fiduciary capacity of insurance agents, TITLE INSURANCE AGENTS, insur-
ance brokers and reinsurance intermediaries.  (a) Every insurance agent,
TITLE INSURANCE AGENT and [every] insurance broker  acting  as  such  in
this  state  shall  be responsible in a fiduciary capacity for all funds
received or collected as  insurance  agent,  TITLE  INSURANCE  AGENT  or
insurance broker, and shall not, without the express consent of his, HER
or  its  principal, mingle any such funds with his, HER or its own funds
or with funds held by him, HER or it in any other capacity.
  (c) This section shall not require any  such  INSURANCE  agent,  TITLE
INSURANCE  AGENT,  INSURANCE broker or reinsurance intermediary to main-
tain a separate bank deposit for the funds of each  such  principal,  if
and  as long as the funds so held for each such principal are reasonably
ascertainable from the books of  account  and  records  of  such  agent,
broker or reinsurance intermediary, as the case may be.
  S  14.  The  section heading and subsection (a) of section 2122 of the
insurance law are amended to read as follows:
  Advertising by insurance [agents and brokers] PRODUCERS.  (a)  (1)  No
insurance  [agent  or  insurance broker] PRODUCER shall make or issue in
this state any advertisement, sign, pamphlet, circular,  card  or  other

S. 5923                             6

public  announcement purporting to make known the financial condition of
any insurer, unless the  same  shall  conform  to  the  requirements  of
section one thousand three hundred thirteen of this chapter.
  (2)  No  insurance [agent, insurance broker] PRODUCER or other person,
shall, by any advertisement or public announcement in this  state,  call
attention to any unauthorized insurer or insurers.
  S 15. Subsections (a) and (b) of section 2128 of the insurance law are
amended to read as follows:
  (a)  Notwithstanding  the  provisions  of  sections two thousand three
hundred twenty-four and four thousand two hundred  twenty-four  of  this
chapter,  no  [insurance  agent, insurance broker, insurance consultant,
excess line broker,  reinsurance  intermediary  or  insurance  adjuster]
LICENSEE  SUBJECT  TO THIS CHAPTER shall receive any commissions or fees
or shares thereof in connection with insurance coverages placed  for  or
insurance  services rendered to the state, its agencies and departments,
public  benefit  corporations,  municipalities  and  other  governmental
subdivisions  in  this  state,  unless  such [insurance agent, insurance
broker, insurance consultant, excess line broker,  reinsurance  interme-
diary  or  insurance adjuster] LICENSEE actually placed insurance cover-
ages on behalf of or rendered insurance services to the state, its agen-
cies and departments, public benefit  corporations,  municipalities  and
other governmental subdivisions in this state.
  (b)  The  superintendent  shall,  by  regulation,  require  [insurance
agents, insurance brokers, insurance consultants, excess  line  brokers,
reinsurance intermediaries and insurance adjusters] LICENSEES SUBJECT TO
THIS CHAPTER to file disclosure statements with the insurance department
and  the  most  senior  official of the governmental unit involved, with
respect to any insurance coverages  placed  for  or  insurance  services
rendered  to  the  state,  its  agencies and departments, public benefit
corporations, municipalities and other governmental subdivisions in this
state, EXCEPT THAT TITLE  INSURANCE  CORPORATIONS  AND  TITLE  INSURANCE
AGENTS  SHALL  ONLY  BE REQUIRED TO FILE DISCLOSURE STATEMENTS ANNUALLY.
ANY SUBMISSIONS MADE PURSUANT TO THIS  SECTION  SHALL  BE  DEEMED  TRADE
SECRETS  WHICH  IF  DISCLOSED TO ANY THIRD PARTY WOULD CAUSE SUBSTANTIAL
INJURY TO THE COMPETITIVE POSITION  OF  THE  SUBMITTER.  AS  SUCH,  SAID
DISCLOSURES ARE EXEMPT FROM FREEDOM OF INFORMATION LAW REQUESTS PURSUANT
TO PARAGRAPH (D) OF SUBDIVISION TWO OF SECTION EIGHT-SEVEN OF THE PUBLIC
OFFICERS LAW.
  S  16. Subsection (b) of section 2132 of the insurance law, as amended
by chapter 499 of the laws of 2009, is amended to read as follows:
  (b) This section shall not apply to:
  (1) those persons holding licenses for which  an  examination  is  not
required by the laws of this state;
  (2) any limited licensees or any other licensees as the superintendent
may  exempt  subject  to  any  continuing  education requirements deemed
appropriate by the superintendent; [or]
  (3) for purposes of the continuing  education  requirements  for  life
settlements,  an insurance producer with a life line of authority who is
acting as a life settlement broker pursuant to section two thousand  one
hundred thirty-seven of this article[.]; OR
  (4)  FOR  PURPOSES  OF  A  TITLE  INSURANCE AGENT LICENSE, AN ATTORNEY
LICENSED TO PRACTICE LAW IN THIS STATE, PROVIDED  SAID  ATTORNEY  IS  IN
GOOD STANDING WITH THE NEW YORK STATE OFFICE OF COURT ADMINISTRATION.
  S  17.  The  insurance  law is amended by adding a new section 2139 to
read as follows:

S. 5923                             7

  S 2139. TITLE INSURANCE AGENTS; LICENSING.(A) THE  SUPERINTENDENT  MAY
ISSUE  A  LICENSE TO ANY PERSON, FIRM, ASSOCIATION OR CORPORATION WHO OR
WHICH 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 A TITLE
INSURANCE AGENT PURSUANT TO SUCH A LICENSE SHALL BE AUTHORIZED SO TO ACT
ONLY  IN  THE NAME OF THE LICENSEE. IN THE CASE OF A LICENSE ISSUED TO A
TITLE INSURANCE AGENT, 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)(1)  BEFORE ANY ORIGINAL TITLE INSURANCE AGENT'S LICENSE IS ISSUED,
THERE SHALL BE ON FILE IN THE OFFICE OF THE SUPERINTENDENT  AN  APPLICA-
TION  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 CONTAIN-
ING INFORMATION THE SUPERINTENDENT PRESCRIBES. 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 THIS
CHAPTER AND REGULATION PROMULGATED THEREUNDER.
  (2) THE SUPERINTENDENT MAY REQUIRE ANY INDIVIDUAL NAMED IN THE  APPLI-
CATION  FOR  SUCH  LICENSE TO SUBMIT A SET OF FINGERPRINTS. SUCH FINGER-
PRINTS SHALL BE SUBMITTED TO THE DIVISION OF CRIMINAL  JUSTICE  SERVICES
FOR  A  STATE  A CRIMINAL HISTORY RECORD CHECK. FOR THE PURPOSES OF THIS
PARAGRAPH,  "CRIMINAL  HISTORY  RECORD"  SHALL  MEAN  A  RECORD  OF  ALL
CONVICTIONS  OF CRIMES AND ANY PENDING CRIMINAL CHARGES MAINTAINED ON AN
INDIVIDUAL BY THE DIVISION OF CRIMINAL JUSTICE SERVICES AND THE  FEDERAL
BUREAU  OF  INVESTIGATION. ALL SUCH CRIMINAL HISTORY RECORDS SENT TO THE
SUPERINTENDENT PURSUANT TO THIS PARAGRAPH SHALL BE CONFIDENTIAL PURSUANT
TO THE APPLICABLE FEDERAL AND STATE LAWS,  RULES  AND  REGULATIONS,  AND
SHALL NOT BE PUBLISHED OR IN ANY WAY DISCLOSED TO PERSONS OTHER THAN THE
SUPERINTENDENT,  UNLESS  OTHERWISE AUTHORIZED BY LAW. THE SUPERINTENDENT
SHALL PROVIDE SUCH APPLICANT WITH A COPY OF HIS OR HER CRIMINAL  HISTORY
RECORD,  IF  ANY,  TOGETHER WITH A COPY OF ARTICLE TWENTY-THREE-A OF THE
CORRECTION LAW, AND INFORM SUCH APPLICANT OF HIS OR HER  RIGHT  TO  SEEK
CORRECTION  OF ANY INCORRECT INFORMATION CONTAINED IN SUCH RECORD PURSU-
ANT TO REGULATIONS AND PROCEDURES ESTABLISHED BY THE DIVISION OF  CRIMI-
NAL  JUSTICE SERVICES. ALL DETERMINATIONS TO GRANT OR DENY CLEARANCE FOR
LICENSURE PURSUANT TO THIS SECTION SHALL BE IN ACCORDANCE WITH  SUBDIVI-
SION  SIXTEEN OF SECTION TWO HUNDRED NINETY-SIX OF THE EXECUTIVE LAW AND
ARTICLE TWENTY-THREE-A OF THE CORRECTION LAW.  WHEN  THE  SUPERINTENDENT
DENIES  AN  APPLICATION,  WRITTEN  NOTICE OF SUCH DETERMINATION SHALL BE
GIVEN TO THE PROSPECTIVE APPLICANT WHO SHALL BE AFFORDED NOTICE AND  THE
RIGHT TO BE HEARD AND OFFER PROOF IN OPPOSITION TO SUCH DETERMINATION.
  (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

S. 5923                             8

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 EXAMINA-
TION, 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 FOR WHICH THE
LICENSE IS SOUGHT.
  (G) NO SUCH WRITTEN EXAMINATION OR PRE-LICENSING  EDUCATION  SHALL  BE
REQUIRED OF ANY:
  (1)  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 ANY 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;
  (2)  APPLICANT SEEKING TO OBTAIN A LICENSE AS A TITLE INSURANCE AGENT,
WHEN SUCH APPLICANT IS A LICENSED ATTORNEY-AT-LAW IN THIS STATE PROVIDED
SAID ATTORNEY IS IN GOOD STANDING WITH THE  NEW  YORK  STATE  OFFICE  OF
COURT ADMINISTRATION;
  (3)  INDIVIDUAL SEEKING TO BE NAMED A LICENSEE OR SUB-LICENSEE, WHO IS
A NON-RESIDENT AND HAS BEEN A TITLE INSURANCE AGENT IN THE  INDIVIDUAL'S
HOME STATE FOR AT LEAST FIVE YEARS; PROVIDED, HOWEVER, THAT THE INDIVID-
UAL'S HOME STATE GRANTS NON-RESIDENT LICENSES TO RESIDENTS OF THIS STATE
ON THE SAME BASIS.
  (H)  NOTWITHSTANDING ANY OTHER PROVISION OF THIS SECTION, NO COURSE OF
STUDY OR WRITTEN EXAMINATION SHALL  BE  REQUIRED  WITH  RESPECT  TO  ANY
APPLICANT  WHO  FILES  AN APPLICATION UNDER THIS SECTION WITHIN ONE YEAR
AFTER THE EFFECTIVE DATE OF THIS ARTICLE AND  WHO  DEMONSTRATES  TO  THE
SATISFACTION OF THE SUPERINTENDENT THAT SUCH PROSPECTIVE LICENSEE OR ITS
PROSPECTIVE  SUB-LICENSEE  HAS  REGULARLY AND CONTINUOUSLY PERFORMED THE
FUNCTIONS OF A TITLE INSURANCE AGENT IN THIS STATE FOR A  PERIOD  OF  AT
LEAST FIVE YEARS IMMEDIATELY PRECEDING THE FILING OF SUCH APPLICATION.
  (I)  THE  SUPERINTENDENT MAY REFUSE TO ISSUE TO AN APPLICATION A TITLE
INSURANCE AGENT'S LICENSE IF,  IN  THE  SUPERINTENDENT'S  JUDGMENT,  THE
PROPOSED  LICENSEE OR ANY SUB-LICENSEE: IS NOT TRUSTWORTHY AND COMPETENT
TO ACT AS SUCH AGENT; HAS GIVEN CAUSE FOR THE REVOCATION  OR  SUSPENSION
OF SUCH A LICENSE; OR HAS FAILED TO COMPLY WITH ANY PREREQUISITE FOR THE
ISSUANCE OF SUCH LICENSE.
  (J)  (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. EVERY SUCH
LICENSE MAY BE RENEWED FOR THE ENSUING PERIOD OF TWENTY-FOUR MONTHS UPON
THE FILING OF AN APPLICATION IN CONFORMITY WITH THIS SUBSECTION.

S. 5923                             9

  (3) THE LICENSE MAY BE ISSUED FOR ALL OF SUCH TWO YEAR TERMS, OR  UPON
APPLICATION MADE DURING ANY SUCH TERM, FOR THE BALANCE THEREOF.
  (4)  ANY  LICENSE  SHALL  BE  CONSIDERED  IN  GOOD STANDING WITHIN THE
LICENSE TERM UNLESS:
  (A) REVOKED OR SUSPENDED BY THE SUPERINTENDENT PURSUANT TO THIS  ARTI-
CLE; 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.
  (5) 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 SUPERINTEN-
DENT MAY PRESCRIBE;
  (B)  SUBMITTED  EVIDENCE  OF  COMPLIANCE  WITH  CONTINUING   EDUCATION
REQUIREMENT  PURSUANT  TO SECTION TWO THOUSAND ONE HUNDRED FORTY OF THIS
ARTICLE.
  (C) PAID SUCH FEES AS ARE PRESCRIBED IN THIS SECTION.
  (6) 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 APPLI-
CANT OF THE SUPERINTENDENT'S INTENTION TO  DO  SO  AND  SHALL  GIVE  THE
APPLICANT A HEARING.
  (7)  THE  SUPERINTENDENT  MAY,  IN ISSUING A RENEWAL LICENSE, DISPENSE
WITH THE REQUIREMENTS OF A VERIFIED APPLICATION BY ANY INDIVIDUAL LICEN-
SEE 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 TITLE INSURANCE AGENT TO MAKE A PERSONAL APPLICATION.
  (8)  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.
  (9)  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.
  (10) 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
SHALL  HAVE  BEEN  DISCHARGED  THEREFROM  UNDER  CONDITIONS  OTHER  THAN
DISHONORABLE,  IN  A  CURRENT  LICENSING PERIOD FOR THE DURATION OF SUCH
PERIOD.
  (11) EXCEPT WHERE A CORPORATION, ASSOCIATION OR  FIRM  LICENSED  AS  A
TITLE  INSURANCE AGENT IS APPLYING TO ADD A SUB-LICENSEE, OR THE DATE OF

S. 5923                            10

THE EXPIRATION OF THE LICENSE IS CHANGED, THERE SHALL BE NO FEE REQUIRED
FOR THE ISSUANCE OF AN AMENDED LICENSE.
  (12) THE SUPERINTENDENT MAY ISSUE A REPLACEMENT LICENSE FOR A CURRENT-
LY  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.
  (K)  THE  SUPERINTENDENT  MAY  REFUSE  TO  ISSUE  A LICENSE OR RENEWAL
LICENSE, AS THE CASE MAY BE, TO  ANY  APPLICANT  IF  THE  SUPERINTENDENT
FINDS  THAT  SUCH APPLICANT HAS BEEN OR WILL BE, AS AFORESAID, RECEIVING
ANY BENEFIT OR ADVANTAGE IN  VIOLATION  OF  SECTION  SIX  THOUSAND  FOUR
HUNDRED  NINE  OF THIS CHAPTER, OR IF THE SUPERINTENDENT 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.
  (L) ALL LICENSED TITLE INSURANCE AGENTS SHALL BE ENTITLED TO  THE  DUE
PROCESS  PROVISIONS  AS  PROVIDED  BY THE STATE ADMINISTRATIVE PROCEDURE
ACT.
  S 18. The insurance law is amended by adding a  new  section  2140  to
read as follows:
  S  2140.  CONTINUING  EDUCATION  FOR  TITLE INSURANCE AGENTS. (A) THIS
SECTION SHALL APPLY TO TITLE INSURANCE AGENTS LICENSED PURSUANT TO  THIS
ARTICLE  WHO ARE NATURAL PERSONS AND TO INDIVIDUALS DESIGNATED AS A SUB-
LICENSEE TO FULFILL THE CONTINUING EDUCATION REQUIREMENTS FOR AN  ENTITY
LICENSED UNDER THIS ARTICLE.
  (B) THE FOLLOWING INDIVIDUALS SHALL BE EXEMPT FROM THESE REQUIREMENTS:
  (1)  AN  ATTORNEY LICENSED TO PRACTICE LAW IN THIS STATE PROVIDED SAID
ATTORNEY IS IN GOOD STANDING WITH THE OFFICE OF COURT ADMINISTRATION;
  (2) ANY LICENSEES AS THE SUPERINTENDENT  MAY  EXEMPT  SUBJECT  TO  ANY
CONTINUING  EDUCATION REQUIREMENTS DEEMED APPROPRIATE BY THE SUPERINTEN-
DENT.
  (C) PERSONS LICENSED PURSUANT TO THIS ARTICLE  AND  NOT  EXEMPT  UNDER
THIS  ARTICLE,  SHALL BIENNIALLY SATISFACTORILY COMPLETE SUCH COURSES OR
PROGRAMS OF INSTRUCTION AS MAY BE APPROVED  BY  THE  SUPERINTENDENT,  AS
FOLLOWS:
  (1)  ANY  PERSON HOLDING A LICENSE ISSUED PURSUANT TO THIS ARTICLE AND
NOT EXEMPT UNDER SUBSECTION (B) OF THIS SECTION SHALL, DURING EACH  FULL
BIENNIAL  LICENSING  PERIOD, SATISFACTORILY COMPLETE COURSES OR PROGRAMS
OF INSTRUCTION OR ATTEND SEMINARS AS MAY BE APPROVED BY THE  SUPERINTEN-
DENT EQUIVALENT TO FIFTEEN CREDIT HOURS OF INSTRUCTION.
  (2)  EXCESS  CREDIT  HOURS  ACCUMULATED  DURING ANY BIENNIAL LICENSING
PERIOD SHALL NOT CARRY FORWARD TO THE NEXT BIENNIAL LICENSING PERIOD.
  (D)(1) THE COURSES OR PROGRAMS OF INSTRUCTION SUCCESSFULLY  COMPLETED,
WHICH SHALL BE DEEMED TO MEET THE SUPERINTENDENT'S STANDARDS FOR CONTIN-
UING  EDUCATION  REQUIREMENTS, SHALL BE COURSES, PROGRAMS OF INSTRUCTION
OR SEMINARS, APPROVED AS TO METHOD AND CONTENT  BY  THE  SUPERINTENDENT,
RELATED  TO TITLE INSURANCE, AND GIVEN BY A DEGREE CONFERRING COLLEGE OR
UNIVERSITY WHOSE CURRICULUM  IS  REGISTERED  WITH  THE  STATE  EDUCATION
DEPARTMENT  AT THE TIME THE PERSON TAKES THE COURSE, WHETHER SUCH COURSE
BE GIVEN AS PART OF SUCH CURRICULUM  OR  SEPARATELY,  OR  BY  ANY  OTHER
INSTITUTION,  AGENTS' ASSOCIATION, TRADE ASSOCIATION, BAR ASSOCIATION OR
TITLE INSURANCE CORPORATION, WHICH  MAINTAINS  EQUIVALENT  STANDARDS  OF

S. 5923                            11

INSTRUCTION  AND  WHICH SHALL HAVE BEEN APPROVED FOR SUCH PURPOSE BY THE
SUPERINTENDENT.
  (2)  THE  NUMBER  OF  CREDIT  HOURS ASSIGNED TO EACH OF THE COURSES OR
PROGRAMS OF INSTRUCTION SET FORTH IN PARAGRAPH ONE  OF  THIS  SUBSECTION
SHALL BE DETERMINED BY THE SUPERINTENDENT.
  (E)  A  PERSON  WHO  TEACHES ANY APPROVED COURSE OF INSTRUCTION OR WHO
LECTURES AT ANY APPROVED SEMINAR, AND WHO IS SUBJECT  TO  THIS  SECTION,
SHALL  BE GRANTED THREE CREDIT HOURS FOR EACH FIFTY MINUTES OF PRESENTA-
TION AND ONE CREDIT FOR  EACH  FIFTY  MINUTES  OF  REPEAT  PRESENTATIONS
DURING ANY BIENNIAL LICENSING PERIOD.
  (F)  EVERY  PERSON  SUBJECT  TO  THIS SECTION SHALL FURNISH, IN A FORM
SATISFACTORY TO  THE  SUPERINTENDENT,  CERTIFICATION  ATTESTING  TO  THE
COURSE  OR  PROGRAMS  OF INSTRUCTION TAKEN AND SUCCESSFULLY COMPLETED BY
SUCH PERSON PURSUANT TO SUBSECTION (D) OF THIS SECTION.
  (G) (1) ANY PERSON FAILING TO MEET THE REQUIREMENTS  IMPOSED  BY  THIS
SECTION SHALL NOT BE ELIGIBLE TO RENEW THE LICENSE.
  (2)  ANY PERSON WHOSE LICENSE WAS NOT RENEWED SHALL NOT BE ELIGIBLE TO
BECOME RELICENSED DURING THE NEXT BIENNIAL LICENSING PERIOD  UNTIL  THAT
PERSON  HAS  DEMONSTRATED TO THE SATISFACTION OF THE SUPERINTENDENT THAT
CONTINUING EDUCATION REQUIREMENTS FOR THE LAST BIENNIAL LICENSING PERIOD
WERE MET.
  (3) ANY PERSON WHOSE LICENSE WAS NOT RENEWED PURSUANT TO PARAGRAPH ONE
OF THIS SUBSECTION, WHO ACCUMULATES  SUFFICIENT  CREDIT  HOURS  FOR  THE
PRIOR LICENSING PERIOD TO QUALIFY FOR RELICENSING IN THE BIENNIAL PERIOD
FOLLOWING SUCH NON-RENEWAL, MAY NOT APPLY THOSE SAME CREDIT HOURS TOWARD
THE CONTINUING EDUCATION REQUIREMENTS FOR THE CURRENT BIENNIAL LICENSING
PERIOD.
  (H)(1)  ANY  ENTITY  ELIGIBLE TO PROVIDE COURSES, PROGRAMS OF INSTRUC-
TION, OR SEMINARS IN ACCORDANCE WITH SUBSECTION  (D)  OF  THIS  SECTION,
MUST  FILE  FOR  APPROVAL  BY THE SUPERINTENDENT ON A BIENNIAL BASIS, TO
CONFORM WITH ITS AREA OF INSTRUCTION, A PROVIDER  ORGANIZATION  APPLICA-
TION  AND  A  COURSE SUBMISSION APPLICATION FOR EACH COURSE, PROGRAM AND
SEMINAR, AND COURSES MAY BE ADDED  ON  APPROVAL  BY  THE  SUPERINTENDENT
DURING  THE  PERIOD ON NOTIFICATION TO THE SUPERINTENDENT AND PAYMENT OF
THE APPROPRIATE FILING FEE.
  (2) THE PROVIDER ORGANIZATION APPLICATION SHALL INCLUDE THE  NAMES  OF
ALL  INSTRUCTORS  TO BE USED DURING THE CONTRACT PERIOD, AND INSTRUCTORS
MAY BE ADDED DURING THE  PERIOD  BY  NOTIFYING  THE  SUPERINTENDENT  AND
PAYING THE APPROPRIATE FILING FEE.
  (3)  THE  COMPLETED APPLICATIONS SHALL BE RETURNED IN A TIMELY MANNER,
AS SPECIFIED BY THE SUPERINTENDENT, WITH A NON-REFUNDABLE FILING FEE  OF
TWO  HUNDRED DOLLARS PER ORGANIZATION, FIFTY DOLLARS PER COURSE, PROGRAM
AND SEMINAR, AND FIFTY DOLLARS PER INSTRUCTOR.
  (4) APPROVAL OF THE APPLICATION SHALL BE  AT  THE  DISCRETION  OF  THE
SUPERINTENDENT.
  (I) EACH LICENSEE SHALL PAY A BIENNIAL FEE OF TEN DOLLARS PER LICENSE,
FOR  CONTINUING  EDUCATION  CERTIFICATE FILING AND RECORDING CHARGES, TO
THE SUPERINTENDENT OR, AT THE DISCRETION OF THE SUPERINTENDENT, DIRECTLY
TO AN ORGANIZATION UNDER CONTRACT TO PROVIDE CONTINUING EDUCATION ADMIN-
ISTRATIVE SERVICES.
  S 19. Section 2314 of the insurance law is amended to read as follows:
  S 2314. Charging of rates. No  authorized  insurer  [shall,  and],  no
licensed insurance agent, NO TITLE INSURANCE AGENT, no employee or other
representative  of  an  authorized  insurer,  and  no licensed insurance
broker shall knowingly, charge or demand a rate  or  receive  a  premium
which  departs from the rates, rating plans, classifications, schedules,

S. 5923                            12

rules and standards in effect on behalf of the insurer, or  shall  issue
or make any policy or contract involving a violation thereof.
  S  20.  Subsection (e) of section 2324 of the insurance law is amended
to read as follows:
  (e) This section shall not apply to any policy or contract of reinsur-
ance nor to any contract or policy of life insurance, accident insurance
or health insurance which is subject to the provisions of  section  four
thousand two hundred twenty-four of this chapter, NOR TO ANY CONTRACT OR
POLICY  OF  TITLE  INSURANCE,  nor  to  any contract or policy of marine
insurance, other than contracts or policies of automobile insurance,  or
of  marine  protection  and  indemnity  insurance,  nor to any insurance
contract, or rate of insurance in connection with any insurance contract
either against loss or damage to, or legal liability in connection with,
any property located wholly  outside  of  this  state  or  any  activity
carried  on outside of this state or any motor vehicle or aircraft prin-
cipally garaged and used outside of this state.
  S 21. Subsection (d) of section 6409 of the insurance law  is  amended
to read as follows:
  (d)  No  title  insurance corporation OR TITLE INSURANCE AGENT, or any
other person acting for or on behalf of it, shall make any rebate of any
portion of the fee, premium or charge made, or pay or give to any appli-
cant for insurance, or to any person, firm,  or  corporation  acting  as
agent, representative, attorney, or employee of the owner, lessee, mort-
gagee or the prospective owner, lessee, or mortgagee of the real proper-
ty  or  any interest therein, either directly or indirectly, any commis-
sion, any part of its fees or charges, or  any  other  consideration  or
valuable  thing, as an inducement for, or as compensation for, any title
insurance business. Any person or entity who accepts or receives such  a
commission  or rebate shall be subject to a penalty equal to the greater
of [one] FIVE thousand dollars or five times the amount [thereof] OF THE
REBATE, AND ANY PERSON OR ENTITY WHO OTHERWISE VIOLATES THIS SUB-SECTION
SHALL BE SUBJECT TO A PENALTY EQUAL TO  THE  GREATER  OF  FIVE  THOUSAND
DOLLARS OR THE AMOUNT OF THE TITLE INSURANCE PREMIUM EARNED ON THE TRAN-
SACTION ON WHICH THE VIOLATION OCCURRED, EXCEPT, AS TO A TITLE INSURANCE
AGENT,  SUCH  SUM  SHALL NOT INCLUDE THAT PORTION OF THE PREMIUM PAID OR
PAYABLE TO THE TITLE INSURANCE CORPORATION.
  S 22. Subsection (a) of section 107 of the insurance law is amended by
adding a new paragraph 54 to read as follows:
  (54) "TITLE INSURANCE AGENT" SHALL HAVE THE MEANING ASCRIBED TO IT  BY
PARAGRAPH  ONE OF SUBSECTION (Y) OF SECTION TWO THOUSAND ONE HUNDRED ONE
OF THIS CHAPTER.
  S 23. This act shall take effect on  the  one  hundred  eightieth  day
after  it  shall  have  become  a law, provided, however, that effective
immediately:
  (1) the addition, amendment and/or repeal of any  rule  or  regulation
necessary  for  the implementation of this act on its effective date are
authorized and directed to be made  and  completed  on  or  before  such
effective date;
  (2) the superintendent of financial services shall promulgate applica-
tion  forms  for  persons,  firms  and  corporations seeking to obtain a
license as a title insurance agent; and
  (3) each person, firm or corporation who has filed an application  for
a  license  as  a  title insurance agent on or before January 1, 2014 or
within 90 days  after  the  superintendent  of  financial  services  has
promulgated  application  forms  pursuant to this act, whichever date is
later, may act as such licensee without a  license  issued  pursuant  to

S. 5923                            13

sections  2138, 2139, or 2140 of the insurance law until the superinten-
dent of financial services has made a final determination on the  appli-
cation for such license filed by such person, firm or corporation.

Comments

Open Legislation comments facilitate discussion of New York State legislation. All comments are subject to moderation. Comments deemed off-topic, commercial, campaign-related, self-promotional; or that contain profanity or hate speech; or that link to sites outside of the nysenate.gov domain are not permitted, and will not be published. Comment moderation is generally performed Monday through Friday.

By contributing or voting you agree to the Terms of Participation and verify you are over 13.