Senate Bill S5805

2017-2018 Legislative Session

Relates to domestic insurers and the national association of registered agents and brokers; repealer

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Archive: Last Bill Status - In Senate Committee Insurance Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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Date of Action	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 03, 2018	referred to insurance
May 01, 2017	referred to insurance

2017-S5805 (ACTIVE) - Details

Current Committee:: Senate Insurance
Law Section:: Insurance Law
Laws Affected:: Rpld §2103 sub§ (j) ¶10, §2104 sub§ (g) ¶2, §2132 sub§ (i), §6505, amd Ins L, generally; amd §1552, Tax L

2017-S5805 (ACTIVE) - Summary

Relates to foreign insurers deemed to be domestic insurers (Part A); relates to the national association of registered agents and brokers (Part B).

2017-S5805 (ACTIVE) - Sponsor Memo

                                 BILL NUMBER:  S5805

 TITLE OF BILL :  An act to amend the insurance law, in relation to
foreign insurers deemed to be domestic insurers (Part A); and to amend
the insurance law and the tax law, in relation to the national
association of registered agents and brokers; and to repeal certain
provisions of the insurance law thereto (Part B)

 PURPOSE OF THE BILL :

This bill would amend the Insurance Law to provide for oversight over
certain insurance companies that would be deemed domestic (i.e.,
commercially domiciled) in New York, and domestic insurers that are
parts of holding company systems controlled by authorized insurance
companies that are not domiciled in New York. The bill would also
amend the Insurance Law to make technical changes necessary to conform
New York law to the federal National Association of Registered Agents
and Brokers ("NARAB") legislation.

 SUMMARY OF PROVISIONS :

Part A of the bill would expand the Department of Financial Services'
("DFS") regulatory oversight over holding company transactions
involving New York domiciled insurance companies to include instances
when the holding company is an authorized insurer not domiciled in New
York.

*Section 1 would amend Ins. L. § 1501(d) to deem an authorized foreign
life insurer domiciled in New York as a domestic insurer.

*Section 2 would amend Ins. L. § 1502(a) to clarify that domestic
insurers shall not be deemed a holding company, except insurers deemed
to be domestic insurers pursuant to amended subsection d of Ins. L.
section 1501.

*Section 3 would amend Ins. L. section 1506(a) to prohibit any person,
other than a domestic insurer not deemed a domestic insurer pursuant
to amended subsection d of Ins. L. section 1501 from acquiring control
of any domestic insurer.

*Section 4 would amend Ins. L. section 1603(a) to make a technical
correction to require the DFS' approval for all acquisitions of other
companies made by domestic insurers.

*Section 5 would provide that the bill take effect immediately.


Part B of the proposal would amend the Ins. L. with regard to the
NARAB and to make other technical amendments to the Ins. L. and Tax
Law.

*Section 1 would amend Ins. L. § 110 to allow the DFS to share
confidential information with and receive confidential information
from NARAB.

*Section 2 would amend Ins. L. § 2101(a)(2) to make technical
amendments to an exception from the definition of "insurance agent."

*Section 3 would amend Ins. L. § 2101(g)(1)(C), (D), and (E) to make
technical amendments to the exceptions from the definition of
"independent adjuster."

*Section 4 would amend Ins. L. § 2101(1) to remove unnecessary
references to the "District of Columbia" and "territory of the United
States" from the definition of "home state" and would add definitions
of "principal place of business and "principal place of residence" for
the purpose of the definition of "home state." Section 4 also would
amend Ins. L. §§ 2101(m), (n), and (o) by removing "licensed", amend
Ins. L. § 2101(w) to insert "commonwealth" in the definition of
"state", and add a new Ins. L. § 2101(z), which would define "national
association."

*Section 5 would amend Ins. L. § 2101(r) by renumbering paragraphs (6)
and (7) as paragraphs (7) and (8), inserting a new paragraph (6),
which would add mortgage guaranty to the definition of "line of
authority", and to make clear in paragraph (8) that "line of
authority" may include any other kind of insurance or sub-class of a
kind of insurance set forth in a regulation promulgated by, and at the
discretion of, the Superintendent.

*Section 6 would amend Ins. L. § 2103(a) to permit the Superintendent
to issue an insurance agent's license for credit insurance as provided
under Ins. L. section 2101(r)(6)(A), and would amend Ins. L.  §
2103(b) to permit the Superintendent to issue an insurance agent's
license for credit insurance as provided under Ins. L. § 2101(r)(6)(B)
and for crop insurance.

*Section 7 would amend Ins. L. § 2103(f)(2) to permit an applicant for
an accident and health or sickness, property, casualty, or personal
lines insurance agent license to take the pre-licensing course outside
of the classroom, such as online. Section 7 also would make technical
amendments to Ins. L. § 2103(0(2).

*Section 8 would amend Ins. L. § 2103(g) by not requiring a written
examination as a prerequisite to the issuance of a travel insurance
agent's license to any ticket selling agent or representative of a
railroad company, steamship company, carrier by air, public bus
carrier, or other common carrier who acts as an insurance agent only
in reference to insurance coverage for trip cancellation, trip
interruption, baggage, accident and health, disability, and personal
effects, when limited to a specific trip and sold in connection with
transportation provided by the common carrier. Section 8 also would
amend Ins. L. §§ 2103(g)(9) and (10) to update references to certain
professional designations and to give the Superintendent discretion
via a regulation to determine which other professional designations,
if held, would exempt an individual seeking to be named a licensee or
sublicensee from all or any part of the insurance agent pre-licensing,
written exam or prerequisite pre-licensing course as set forth in
either Ins. L. §§ 2103(f)(2)(A) or (B).

*Section 9 would amend Ins. L. § 2103(j)(9) to increase the insurance
agent licensing fee from $40 to $45 for each year or fraction of a
year that a license is valid, and would repeal Ins. L. § 2103(j)(10),
which requires that an application for the renewal of an insurance
agent license be filed with the Superintendent not less than 60 days
prior to the date the license expires or the applicant will be subject
to a $10 late filing fee.

*Section 10 would amend Ins. L. §§ 2104(c)(1)(A), (B), and (C), which
apply to insurance broker licensing.

*Section 11 would amend Ins. L. § 2104(e)(1)(B) to update references
to certain professional designations and to give the Superintendent
discretion via regulation to determine which other professional
designations, if held, would exempt an individual seeking to be named
a licensee or sublicensee from all or part of the insurance broker
pre-licensing, written exam or prerequisite course as set forth in
Ins. L. § 2104(c)(1)(A).

*Section 12 would amend Ins. L. § 2104(f)(1) to increase the insurance
broker licensing fee from $40 to $45 for each year or fraction of a
year that a license is valid, and would repeal Ins. L. § 2104(g)(2),
which requires that an application for the renewal of an insurance
broker license be filed with the Superintendent not less than 60 days
prior to the date the license expires or the applicant will be subject
to a $10 late filing fee.

*Section 13 would amend Ins. L. § 2107(a)(1), which applies to the
issuance of an insurance consultant's license, to make technical
amendments.

*Section 14 would amend Ins. L. § 2107(c)(2) to update references to
certain professional designations.

*Section 15 would amend Ins. L. § 2110 to allow the Superintendent to
revoke or suspend a course provider's authorization and to make
technical amendments.

*Section 16 would amend Ins. L. § 2132(b) to exempt from New York
continuing education requirements an insurance producer who is a
member of NARAB, provided the insurance producer complies with the
continuing education requirements of the insurance producer's home
state and NARAB.

*Section 17 would repeal Ins. L. § 2132(i), which applies to
continuing education course providers.

*Section 18 would delete the language in Ins. L. § 2137(d)(2) that
applies to fingerprinting of life settlement brokers.

*Section 19 would amend Ins. L. § 2137(f)(1)(D) to update references
to certain professional designations and to give the Superintendent
discretion via a regulation to determine which other professional
designations, if held, would exempt an individual seeking to be named
a licensee or sublicensee from all or part of the life settlement
broker pre-licensing, written exam or prerequisite course as set forth
in Ins. L. section 2137(e).

*Section 20 would add a new Ins. L. § 2140, which would require
generally any individual named in an application for a license under
Ins. L. Article 21 or 68 to submit a set of fingerprints.

*Section 21 would add a new Ins. L. § 2141, which would apply to
pre-licensing and continuing education course providers.

*Section 22 would add a new Ins. L. § 2142 regarding membership in
NARAB.

*Section 23 would repeal Ins. L. § 6505, which applies to the
licensing of mortgage guaranty agents.

*Section 24 would amend Ins. L. § 7803(d) to remove a reference to the
Education Law and to require the Superintendent to inform an applicant
that he or she may obtain a copy of his or her criminal history record
maintained by the Division of Criminal Justice Services, if any, and
may challenge the completeness or accuracy of the information
contained in the record.

*Section 25 would amend Ins. L. § 7804(f) in a manner similar to the
amendment to Ins. L. section 7803(d).

*Section 26 would amend Ins. L. § 2118(d)(1), which applies to excess
line brokers, to state that where the insurance covers property or
risks located or resident both in and outside of the United States and
the insured's home state is New York, the sum payable shall be
computed on that portion of the gross premiums allocated to the risks
located or resident in the United States pursuant to Ins. L. section

9102(b) less the amount of gross premiums allocated to the risks
located or resident in the United States and returned to the insured.

*Section 27 would amend Ins. L. § 9102, which applies to allocation of
premiums, by inserting language that sets forth how a person must
determine the amount gross premiums taxable in New York where a
placement of excess line insurance covers property or risks located or
resident both in the United States and outside the United States and
the insured's home state of New York.

*Section 28 would amend Tax Law § 1552, which applies to the
allocation of premiums with regard to the tax on independently
procured insurance, by adding language that states that where the
insurance covers property or risks located or resident both in and
outside of the United States and the taxpayer's home state is New
York, the sum payable must be computed on that portion of the gross
premiums allocated to the risks located or resident in the United
States less the amount of gross premiums allocated to the risks
located or resident in the United States and returned to the insured.
The amount of premiums allocable to risks resident or located within
the United States must be determined in a manner consistent with the
rules and regulations promulgated by the Superintendent of Financial
Services pursuant to Ins. L. § 9102(b).


 LEGISLATIVE HISTORY :

None.

 JUSTIFICATION :

Part A: This proposal would authorize DFS to oversee authorized
insurers not domiciled in New York that conduct a significant portion
of their business in New York as well as certain insurance holding
company transactions that are not currently subject to DFS review and
approval. This bill would protect policyholders and the public from
transactions that may undermine the solvency of an insurance company,
or that would otherwise fail the fair and equitable standard in
Article 15 of the Insurance Law. Moreover, the bill would also reduce
incentives for a company to enter into a transaction that effectively
constitutes a re-domestication to another state.

Part B: On January 12, 2015, President Obama signed into law a bill
that established NARAB, an independent non-profit corporation that
will act as a central clearinghouse. It allows an insurance producer
who is a member of NARAB and who is licensed in his or her home state
to sell, solicit or negotiate insurance in every other state in which
the producer intends to do business, provided the producer is licensed
for those lines of business in his or her home state and pays each
state's licensing fee. Although NARAB preempts certain New York laws
with respect to the authority to operate, it permits states to
regulate the activities of its members in the same manner as New York
licensees.

This bill would amend the Insurance Law to conform to NARAB. For
example, this bill would add a new Ins. L. § 2142 to provide that a
nonresident insurance producer that is a member of NARAB will be
deemed an insurance producer for the purpose of the Insurance Law,
upon payment of licensing fees set by New York. In addition, the bill
would ensure that New York's producer licensing schematic is
reciprocal and uniform with other states. This would create parity so
that New York resident producers are not disadvantaged when compared
to nonresident insurance producers who are NARAB members. This bill is
also necessary because, without it, the Superintendent could not take
action against any NARAB member that violates New York law and New
York would not be able to collect licensing fees.
In addition to amending the Insurance Law to align with NARAB, this
bill also would add a new Ins. L. § 2140 to grant the Superintendent
the authority to require an individual who is applying for any license
pursuant to Article 21 of the Insurance Law, to submit his or her
fingerprints. Currently, only insurance adjusters and life settlement
brokers must be fingerprinted under Article 21 of the Insurance Law.
This amendment would provide greater consumer protection by allowing
the Superintendent to ascertain whether applicants are trustworthy by
requiring them to submit their fingerprints so that a criminal history
record check may be conducted.

This bill would also expand the discretionary exemptions set forth in
Ins. L. §§ 2103(g)(9) and (10) and 2104(e)(1)(B) to "any other
designation that the Superintendent determines is acceptable pursuant
to a regulation" to reflect there are numerous comparable designations
that DFS wishes to accommodate when the Superintendent deems them
acceptable. The comparable designations are typically awarded after a
person completes rigorous coursework and an examination. Also, the
amount of hours required to complete one of these designations far
exceeds the hours designated for pre-licensing education, and the
subject matter of the coursework includes everything that a person
needs to know to sit for a state licensing exam.

This bill also would clarify Ins. L. §§ 2101(m), (n) and (o), which
set forth the definitions of "negotiate" or "negotiation", "sell" or
"sale", and "solicit" or "solicitation", respectively. The bill would
replace the term "licensed insurer" with the term "insurer" because
these provisions define certain activity for all purposes regardless
of whether that insurer is licensed by DFS. Read literally, a person
would not be acting as an insurance agent or broker when soliciting,
negotiating, or selling on behalf of an unauthorized insurer, which
was not the intent.

The bill also would incorporate mortgage guaranty insurance agents
under all of the provisions of Ins. L. Article 21. Currently, such
agents get a lifetime license and pay a one-time licensing fee.
However, all other Article 21 licensees have two-year license terms
and pay renewal licensing fees. The lifetime mortgage guaranty
insurance agent license appears to be an anomaly. Since mortgage
guaranty insurance agents are licensed under Ins. L. Article 65, the
terms of their licenses were not changed when the Legislature amended
Ins. L. Article 21 to change the term of an insurance agent license to
two-years. Moving mortgage guaranty insurance agents into Article 21
ensures that all of the requirements that apply to all other insurance
agents will apply to mortgage guaranty insurance agents too.

Finally, Part I of Chapter 61 of the Laws of 2011 amended the
Insurance Law and Tax Law to bring New York into conformance with the
federal Dodd-Frank Wall Street Reform and Consumer Protection Act,
which contains the Nonadmitted and Reinsurance Reform Act. However,
the amendments to the Insurance Law and Tax Law did not specifically
address situations in which nonadmitted insurance contracts covers
risks located both in the United States and outside the United States,
for the purposes of premium tax allocation. In interpreting the law,
DFS issued an insurance regulation that excess line brokers need not
pay taxes on the premium attributable to such non-U.S. risks and the
Tax Department interprets the Tax Law in a manner consonant with DFS's
interpretation. This bill would amend Ins. L. §§ 2118(d) and 9102 and
Tax Law § 1552 to expressly provide for premium tax allocation when
such an insurance contract covers risks located both in the United
States and outside the United States, which would reflect the current
interpretation.

 FISCAL IMPLICATIONS :

Part A: None.
Part B: This bill will likely result in increased revenue for the
State

 EFFECTIVE DATE :
Part A: Immediately
Part B: Various provisions take effect at different times.

2017-S5805 (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   5805
 
                        2017-2018 Regular Sessions
 
                             I N  S E N A T E
 
                                May 1, 2017
                                ___________
 
 Introduced  by Sen. SEWARD -- (at request of the Department of Financial
   Services) -- read twice and ordered printed, and when  printed  to  be
   committed to the Committee on Insurance
 
 AN  ACT  to  amend  the  insurance  law, in relation to foreign insurers
   deemed to be domestic insurers (Part A); and to  amend  the  insurance
   law and the tax law, in relation to the national association of regis-
   tered  agents  and  brokers;  and  to repeal certain provisions of the
   insurance law thereto (Part B)
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  This  act enacts into law major components of legislation
 relating to foreign insurers deemed to  be  domestic  insurers,  assess-
 ments,  distribution  of  assets,  insurers  deemed to be in a hazardous
 financial condition, the national association of registered  agents  and
 brokers,  and  technical  amendments. Each component is wholly contained
 within a Part identified as Parts A through B. The  effective  date  for
 each particular provision contained within such Part is set forth in the
 last section of such Part. Any provision in any section contained within
 a  Part,  including the effective date of the Part, which makes a refer-
 ence to a section "of this act",  when  used  in  connection  with  that
 particular  component,  shall  be deemed to mean and refer to the corre-
 sponding section of the Part in which it is found. Section three of this
 act sets forth the general effective date of this act.
 
                                  PART A
 
   Section 1. Subsection (d) of section 1501 of  the  insurance  law,  as
 added by chapter 380 of the laws of 1989, is amended to read as follows:
   (d)  For the purposes of this article only, every foreign life insurer
 which is authorized to do business in this state [which is controlled by
 a person not authorized to do an insurance business in this state,  and]
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD10099-02-7

 S. 5805                             2
 
 which, during its three preceding fiscal years taken together, or during
 any  lesser period of time if it has been licensed to transact its busi-
 ness in New York only for such lesser period of  time,  has  written  an
 average  of  more  gross  premiums  in the state of New York than it has
 written in its state of domicile during the same period, and such  gross
 premiums  written  constitute  twenty percent or more of its total gross
 premiums written everywhere in the United States for such three year  or
 lesser  period,  as reported in its three most recent annual statements,
 shall be deemed a domestic  insurer,  provided  written  notice  of  the
 applicability  of this subsection is given to such company by the super-
 intendent prior to this article being applicable.
   § 2. Subsection (a) of section 1502 of the insurance law is amended to
 read as follows:
   (a) Notwithstanding any other provision of this article the  following
 shall not be deemed A holding [companies] COMPANY:
   (1)  [authorized  insurers]  ANY  DOMESTIC  INSURER,  [including alien
 insurers transacting  business  in  this  state  through  United  States
 branches]  EXCEPT AN INSURER DEEMED TO BE A DOMESTIC INSURER PURSUANT TO
 SUBSECTION (D) OF SECTION ONE THOUSAND FIVE HUNDRED ONE OF THIS ARTICLE,
 or [their subsidiaries] ANY SUBSIDIARY OF SUCH A DOMESTIC INSURER; or
   (2) the United States, a state or any political subdivision, agency or
 instrumentality thereof, or any corporation  wholly  owned  directly  or
 indirectly by one or more of the foregoing.
   §  3.  Subsection (a) of section 1506 of the insurance law, as amended
 by chapter 238 of the laws of 2013, is amended to read as follows:
   (a) No person, other than [an authorized] A DOMESTIC insurer  THAT  IS
 NOT  AN  INSURER DEEMED TO BE A DOMESTIC INSURER PURSUANT TO SECTION ONE
 THOUSAND FIVE HUNDRED ONE OF THIS ARTICLE, shall acquire control of  any
 domestic  insurer,  whether  by purchase of its securities or otherwise,
 unless:
   (1) it gives twenty days written notice to the insurer, or such short-
 er period of notice as the superintendent permits, of its  intention  to
 acquire  control, provided that the notice shall include an agreement by
 the person seeking to acquire control that the person will  provide  the
 annual  report  specified  in section one thousand five hundred three of
 this article for so long as control exists; and
   (2) it receives the superintendent's prior approval.
   § 4. Subsection (a) of section 1603 of the insurance law,  as  amended
 by chapter 238 of the laws of 2013, is amended to read as follows:
   (a)  A domestic insurer shall not acquire control of any [other domes-
 tic insurer] INSTITUTION, whether  by  purchase  of  its  securities  or
 otherwise, unless:
   (1) a notice of intention of such proposed acquisition shall have been
 filed with the superintendent not less than ninety days, or such shorter
 period  as  may  be  permitted by the superintendent, in advance of such
 proposed acquisition; and
   (2) the insurer receives the superintendent's prior approval.
   § 5. This act shall take effect immediately.
 
                                  PART B
 
   Section 1. Subsection (a) of section 110  of  the  insurance  law,  as
 amended  by  chapter  238  of  the  laws  of 2013, is amended to read as
 follows:
   (a) In order to assist in  the  performance  of  the  superintendent's
 duties under this chapter, the superintendent:

 S. 5805                             3
 
   (1)  may  share  documents,  materials or other information, including
 confidential and privileged documents,  materials  or  information  with
 other  state,  federal,  and international regulatory agencies, with the
 National Association  of  Insurance  Commissioners,  its  affiliates  or
 subsidiaries,  WITH  THE  NATIONAL  ASSOCIATION OF REGISTERED AGENTS AND
 BROKERS and with  state,  federal,  and  international  law  enforcement
 authorities,  including  members of any supervisory college described in
 section three hundred two of this chapter, provided that  the  recipient
 has  the authority and agrees to maintain the confidentiality and privi-
 leged status of the document, material or other  information;  provided,
 however,  that  this paragraph shall not be construed as limiting access
 to records pursuant to article six of the public officers law;
   (2) may receive documents, materials or information, including  other-
 wise  confidential  and  privileged documents, materials or information,
 from the National Association of Insurance Commissioners, its affiliates
 or subsidiaries, THE  NATIONAL  ASSOCIATION  OF  REGISTERED  AGENTS  AND
 BROKERS,  and  from  regulatory  and  law enforcement officials of other
 foreign or domestic jurisdictions, including members of any  supervisory
 college  described  in  section  three  hundred two of this chapter, and
 shall maintain as confidential or privileged any document,  material  or
 information  received with notice or the understanding that it is confi-
 dential or privileged under the laws of the  jurisdiction  that  is  the
 source of the document, material or information; and
   (3)  may enter into agreements governing sharing and use of documents,
 materials or information consistent with this subsection.
   § 2. Paragraph 2 of subsection (a) of section 2101  of  the  insurance
 law,  as  amended by chapter 687 of the laws of 2003, is amended to read
 as follows:
   (2) [employees] AN EMPLOYEE of [insurers] AN INSURER, fraternal  bene-
 fit  [societies] SOCIETY or health maintenance [organizations] ORGANIZA-
 TION or [organizations] AN ORGANIZATION employed by [insurers] AN INSUR-
 ER,  fraternal  benefit  [societies]  SOCIETY,  or  health   maintenance
 [organizations]  ORGANIZATION  who  [are] IS engaging in the inspection,
 rating or classification of risks, or in the supervision of the training
 of licensed insurance  producers  and  who  [are]  IS  not  individually
 engaged in the sale, solicitation or negotiation of insurance;
   §  3. Subparagraphs (C), (D), and (E) of paragraph 1 of subsection (g)
 of section 2101 of the insurance law, as amended by chapter 301  of  the
 laws of 2008, are amended to read as follows:
   (C)  any officer, director or regular salaried employee of [an article
 fifteen] A holding company AS DEFINED IN ARTICLE FIFTEEN OF  THIS  CHAP-
 TER, or a controlled person within such holding company system providing
 administrative services within that holding company, ANY OFFICER, DIREC-
 TOR  OR REGULAR SALARIED EMPLOYEE OF A DOMESTIC INSURER SUBJECT TO ARTI-
 CLE SIXTEEN OF THIS CHAPTER OR A  SUBSIDIARY  OF  THE  DOMESTIC  INSURER
 PROVIDING ADMINISTRATIVE SERVICES WITHIN THAT ARTICLE SIXTEEN SYSTEM, OR
 ANY  OFFICER,  DIRECTOR, OR REGULAR SALARIED EMPLOYEE OF A PARENT CORPO-
 RATION SUBJECT TO ARTICLE SEVENTEEN OF THIS CHAPTER OR A  SUBSIDIARY  OF
 THE  PARENT  CORPORATION  PROVIDING  ADMINISTRATIVE SERVICES WITHIN THAT
 ARTICLE SEVENTEEN SYSTEM, or any manager thereof, individual  or  corpo-
 rate,  when  the  claim  to be adjusted is submitted for payment under a
 health benefit plan that is issued or administered by a  health  insurer
 or  health  maintenance  organization within that same [holding company]
 system;
   (D) any officer, director or regular salaried employee of  an  author-
 ized  insurer  that  is  licensed  to  write the kind of insurance to be

 S. 5805                             4
 
 adjusted, or any manager thereof,  individual  or  corporate,  when  the
 claim  to be adjusted is pursuant to a policy that is issued or adminis-
 tered by another insurer within the  same  holding  company  system,  AS
 DEFINED  IN  ARTICLE  FIFTEEN OF THIS CHAPTER, OR WITHIN THE SAME SYSTEM
 UNDER ARTICLE SIXTEEN OR SEVENTEEN OF THIS CHAPTER,  as  the  authorized
 insurer  adjusting the claim, unless acting as an auto body repair esti-
 mator as defined in subsection (j) of this section;
   (E) any officer, director or regular salaried employee of  an  author-
 ized  life  insurance  company,  or  any  manager thereof, individual or
 corporate, or the manager, agent or  general  agent  of  any  department
 thereof,  individual  or  corporate,  when  the  claim to be adjusted is
 submitted under an insurance contract issued by another insurer and  the
 claim:  (i) is within the scope of a contract of reinsurance between the
 two insurers for all of the underlying risks and none of the  underlying
 risks  are  later  reinsured back to the ceding insurer OR AN AFFILIATE,
 PARENT OR SUBSIDIARY OF THE CEDING INSURER; and (ii) relates to  a  kind
 of  insurance  that  the authorized life insurance company adjusting the
 claim is licensed to write;
   § 4. Subsections (l), (m), (n), (o), and (w) of section  2101  of  the
 insurance  law,  subsections  (l), (m), (n), and (o) as added by chapter
 687 of the laws of 2003 and subsection (w) as added by section 4 of part
 I of chapter 61 of the laws of 2011, are amended and  a  new  subsection
 (z) is added to read as follows:
   (l)  In this article, "home state" means [the District of Columbia or]
 any state [or territory of the United  States]  in  which  an  insurance
 producer maintains his, her or its principal place of residence or prin-
 cipal place of business and is licensed to act as an insurance producer.
 FOR THE PURPOSES OF THIS DEFINITION:
   (1) "PRINCIPAL PLACE OF BUSINESS" MEANS THE STATE IN WHICH:
   (A) AN INSURANCE PRODUCER MAINTAINS THE INSURANCE PRODUCER'S HEADQUAR-
 TERS AND, IN THE CASE OF A BUSINESS ENTITY, WHERE HIGH-LEVEL OFFICERS OF
 THE  ENTITY  DIRECT,  CONTROL, AND COORDINATE THE BUSINESS ACTIVITIES OF
 THE BUSINESS ENTITY; OR
   (B) IF AN INSURANCE PRODUCER MAINTAINS THE INSURANCE PRODUCER'S  HEAD-
 QUARTERS  AND, IN THE CASE OF A BUSINESS ENTITY, THE ENTITY'S HIGH-LEVEL
 OFFICERS OF THE ENTITY DIRECT,  CONTROL,  AND  COORDINATE  THE  BUSINESS
 ACTIVITIES OF THE BUSINESS ENTITY, IN MORE THAN ONE STATE OR OUTSIDE THE
 UNITED  STATES,  THEN  THE  STATE  LISTED  IN THE ADDRESS SECTION OF THE
 INSURANCE PRODUCER'S LICENSING APPLICATION; AND
   (2) "PRINCIPAL PLACE OF RESIDENCE" MEANS THE STATE IN WHICH AN  INSUR-
 ANCE  PRODUCER RESIDES FOR THE GREATEST NUMBER OF DAYS DURING A CALENDAR
 YEAR.
   (m) In this article, "negotiate" or "negotiation"  means  the  act  of
 conferring  directly  with or offering advice directly to a purchaser or
 prospective purchaser of a particular contract of  insurance  concerning
 any  of  the  substantive benefits, terms or conditions of the contract,
 provided that the person engaged in that act either sells  insurance  or
 obtains insurance from [licensed insurers] AN INSURER, A fraternal bene-
 fit  [societies] SOCIETY, or A health maintenance [organizations] ORGAN-
 IZATION for purchasers.
   (n) In this article, "sell" or "sale" means to exchange a contract  of
 insurance  by  any  means,  for money or its equivalent, on behalf of [a
 licensed] AN insurer, fraternal benefit society  or  health  maintenance
 organization.
   (o)  In  this article, "solicit" or "solicitation" means attempting to
 sell insurance or asking or urging a person to apply  for  a  particular

 S. 5805                             5
 
 kind  of insurance from a particular [licensed] insurer, fraternal bene-
 fit society or health maintenance organization.
   (w)  In  this  article,  "state" means the District of Columbia or any
 state, COMMONWEALTH, or territory of the United States.
   (Z) IN THIS ARTICLE, "NATIONAL ASSOCIATION" MEANS THE NATIONAL ASSOCI-
 ATION OF REGISTERED AGENTS AND BROKERS, AND  ANY  SUCCESSOR,  AS  ESTAB-
 LISHED PURSUANT TO 15 U.S.C. § 6751 ET. SEQ.
   §  5.  Paragraphs  6  and  7  of subsection (r) of section 2101 of the
 insurance law, as added by chapter 687 of the laws of 2003, are  amended
 to read as follows:
   (6) MORTGAGE GUARANTY: INSURANCE COVERAGE PROVIDING PROTECTION AGAINST
 FINANCIAL  LOSS  BY  REASON OF NONPAYMENT OF ANY SUM REQUIRED TO BE PAID
 UNDER THE TERMS OF ANY INSTRUMENT OF INDEBTEDNESS SECURED BY A  LIEN  ON
 REAL ESTATE;
   (7) personal lines: property/casualty insurance coverage sold to indi-
 viduals and families for primarily noncommercial purposes; and
   [(7)]  (8)  IN  A REGULATION PROMULGATED BY, AND AT THE DISCRETION OF,
 THE SUPERINTENDENT, any other [line] KIND of insurance OR SUB-CLASS OF A
 KIND OF INSURANCE permitted pursuant to this chapter.
   § 6. Subsections (a) and (b) of section 2103 of the insurance law,  as
 amended  by  chapter  687  of  the  laws of 2003, are amended to read as
 follows:
   (a) The superintendent may issue a license  to  any  person,  firm  or
 corporation  who  or  [which] THAT has complied with the requirements of
 this chapter, authorizing [such] THE licensee to  act  as  an  insurance
 agent with respect to the lines of authority for life [insurance], vari-
 able  life  and  variable  annuity  products,  [or]  accident and health
 [insurance and] OR sickness CREDIT, AS PROVIDED UNDER  SUBPARAGRAPH  (A)
 OF  PARAGRAPH  TWO OF SUBSECTION (R) OF SECTION TWO THOUSAND ONE HUNDRED
 ONE OF THIS ARTICLE, or any other line of authority deemed to be similar
 by the superintendent, including, for this purpose,  health  maintenance
 organization contracts, legal services insurance, or with respect to any
 combination  of the above, as specified in [such] THE license, on behalf
 of any insurer, fraternal benefit society, or health maintenance  organ-
 ization[,  which]  THAT is authorized to do such kind or kinds of insur-
 ance or health maintenance organization business in this state.
   (b) The superintendent may issue a license to any person, firm,  asso-
 ciation  or  corporation  who  or  [which]  THAT  has  complied with the
 requirements of this chapter, authorizing the licensee to act  as  agent
 of any authorized insurer, other than an insurer specified in subsection
 (b)  of  section  two thousand one hundred fifteen of this article, with
 respect to the lines of authority for accident and health  or  sickness,
 property,  casualty,  personal lines [or], MORTGAGE GUARANTY, CREDIT, AS
 PROVIDED UNDER PARAGRAPH SIX OF SUBSECTION (R) OF SECTION  TWO  THOUSAND
 ONE  HUNDRED  ONE  OF  THIS  ARTICLE,  CROP, any other line of authority
 granted  other  than  life,  and  variable  life  and  variable  annuity
 products, [which such] OR ANY OTHER LINE OF AUTHORITY THE SUPERINTENDENT
 DETERMINES  TO  BE SIMILAR THERETO, THAT THE insurer is authorized to do
 in this state.
   § 7. Subparagraphs (A) and (B) of paragraph 2  of  subsection  (f)  of
 section 2103 of the insurance law, as amended by chapter 687 of the laws
 of 2003, are amended to read as follows:
   (A)  (I)  For individuals seeking to qualify to obtain a license under
 subsection (a) of this section, [one examination  adapted  to  test  the
 qualifications  for a life insurance agent's license, another adapted to
 test the qualifications for an accident  and  health  insurance  agent's

 S. 5805                             6

 license  and  another  adapted  to  test  the qualifications for a legal
 services insurance license] EXAMINATIONS ADAPTED TO TEST THE  QUALIFICA-
 TIONS  FOR THE LINES OF AUTHORITY SUBJECT TO SUCH SUBSECTION.  Each such
 individual  shall  be  required to pass the type or types of examination
 prescribed by the superintendent for the line or lines of authority,  as
 specified  in  subsection  (a) of this section, for which the license is
 sought.
   (II) No individual shall be deemed qualified to take  the  examination
 or  examinations  unless [he shall have] THE INDIVIDUAL HAS successfully
 completed a course or courses, approved as to method and content by  the
 superintendent,  covering  the  principal branches and contracts of life
 insurance, annuity contracts, disability  insurance,  AND  accident  and
 health  insurance  [and  related  insurance] and requiring not less than
 forty hours of classroom work or the equivalent in  correspondence  work
 or  similar  instruction,  provided, however, that, at the discretion of
 the superintendent, insurance subject material may  be  eliminated  from
 course  content,  with  a corresponding reduction in course hours, if an
 insurer is not authorized to transact such kind or kinds of insurance in
 this state.
   [Such] (III) THE course or courses either shall have been given  by  a
 degree  conferring  college  or  university  [which  has] THAT HAD, when
 [such] THE course [is] WAS taken by [such] THE individual, a  curriculum
 or  curricula  registered  with  the state education department, whether
 [such] THE course be given as part of any such curricula or  separately,
 or  by  any  other  institution  or  life or accident and health insurer
 [which] THAT maintains equivalent standards of instruction,  and  [which
 shall  have]  THAT HAS been approved for such purpose by the superinten-
 dent.
   (B) For individuals seeking to  qualify  to  obtain  a  license  under
 subsection  (b)  of  this  section, [not more than six types of examina-
 tions, each adapted to test the qualifications  of  an  individual  with
 respect to the kinds of insurance business specified in such classifica-
 tion]  EXAMINATIONS  ADAPTED TO TEST THE QUALIFICATIONS FOR THE LINES OF
 AUTHORITY SUBJECT TO SUCH SUBSECTION.  Every [such] individual shall  be
 required  to  pass  the  type  or types of examination prescribed by the
 superintendent for the line or lines of authority for which the  license
 is  sought. No individual shall be deemed qualified to take the examina-
 tion unless [he] THE INDIVIDUAL  shall  have  successfully  completed  a
 course  or courses, approved as to method and content by the superinten-
 dent, covering the principal branches  of  the  insurance  business  and
 requiring  not  less  than  ninety hours of classroom work[,] in, OR THE
 EQUIVALENT IN CORRESPONDENCE WORK OR  SIMILAR  INSTRUCTION  OFFERED  BY,
 institutions  of  learning meeting the standards prescribed by paragraph
 one of subsection (a) of section two thousand one hundred four  of  this
 article; provided, however, with respect to a license issued pursuant to
 subsection  (b)  of this section for a personal line of authority, there
 shall be required not less than forty hours of such classroom work.
   § 8. Paragraphs 1, 9, and 10 of subsection (g) of section 2103 of  the
 insurance law, paragraphs 9 and 10 as amended by chapter 687 of the laws
 of 2003, are amended to read as follows:
   (1)  as  a  prerequisite to the issuance of a [baggage or accident and
 health insurance] TRAVEL INSURANCE agent's license to any ticket selling
 agent or representative of a railroad company, steamship company, carri-
 er by air, [or] public bus carrier, OR OTHER COMMON CARRIER,  who  shall
 act  [thereunder]  as AN insurance agent only in reference to [the issu-
 ance of] INSURANCE COVERAGE FOR TRIP  CANCELLATION,  TRIP  INTERRUPTION,

 S. 5805                             7
 
 baggage  [or],  accident [insurance tickets primarily for the purpose of
 covering risk of travel] AND HEALTH, DISABILITY  AND  PERSONAL  EFFECTS,
 WHEN  LIMITED TO A SPECIFIC TRIP AND SOLD IN CONNECTION WITH TRANSPORTA-
 TION PROVIDED BY THE COMMON CARRIER;
   (9)  in the discretion of the superintendent, as to all or any part of
 the written examination or the prerequisite minimum forty  hour  PRE-LI-
 CENSING  course  specified  in  subparagraph  (A)  of  paragraph  two of
 subsection (f) of this section, of any individual seeking to be named  a
 licensee  or  sub-licensee,  upon  whom has been conferred the Chartered
 Life Underwriter  (C.L.U.)  [or  Chartered  Life  Underwriter  Associate
 designation], CHARTERED FINANCIAL CONSULTANT (CH.F.C.), OR THE MASTER OF
 SCIENCE IN FINANCIAL SERVICES (M.S.F.S.) DESIGNATIONS by [The] THE Amer-
 ican  College  OF  FINANCIAL SERVICES, OR ANY OTHER DESIGNATION THAT THE
 SUPERINTENDENT DETERMINES IS ACCEPTABLE PURSUANT TO A REGULATION;
   (10) in the discretion of the superintendent, as to all or any part of
 the written examination or the prerequisite minimum ninety hour  PRE-LI-
 CENSING  course  specified  in  subparagraph  (B)  of  paragraph  two of
 subsection (f) of this section, of any individual seeking to be named  a
 licensee  or  sublicensee,  upon  whom  has been conferred the Chartered
 Property Casualty Underwriter (C.P.C.U.)  designation  by  the  American
 Institute  for CHARTERED Property [and Liability] CASUALTY Underwriters,
 OR ANY OTHER DESIGNATION THAT THE SUPERINTENDENT DETERMINES IS  ACCEPTA-
 BLE PURSUANT TO A REGULATION; or
   §  9.  Paragraph 10 of subsection (j) of section 2103 of the insurance
 law is REPEALED.
   § 9-a. Paragraphs 11, 12, and 13 of subsection (j) of section 2103  of
 the  insurance  law  are renumbered paragraphs 10, 11, and 12, and para-
 graph 9, as amended by section 2 of part F of chapter 59 of the laws  of
 2005, is amended to read as follows:
   (9)  In  addition to any examination fee required by subsection (f) of
 this section, there shall be paid to the superintendent for  each  indi-
 vidual  license  applicant  and  each  proposed  sub-licensee the sum of
 [forty] FORTY-FIVE dollars for each year or fraction of a year in  which
 a  license  shall  be  valid.  If,  however,  the license applicant or a
 proposed sub-licensee should withdraw the application or the superinten-
 dent should deny the application  before  the  license  applied  for  is
 issued, THEN the superintendent may refund the fee paid by the applicant
 for  the  license applied for with the exception of any examination fees
 required pursuant to subsection (f) of this section.
   § 10. Paragraph 1 of subsection (c) of section 2104 of  the  insurance
 law,  as  amended by chapter 505 of the laws of 2000, is amended to read
 as follows:
   (1) Every individual applicant for such  license  and  every  proposed
 sub-licensee  shall  be of the age of eighteen years or over at the time
 of the issuance of such license. No individual shall be deemed qualified
 to obtain such license or to be named  as  sub-licensee  therein  unless
 [he]  THE  INDIVIDUAL shall comply with the requirements of subparagraph
 (A), (B) or (C) following:
   (A) [He] THE INDIVIDUAL shall have successfully completed a course  or
 courses, approved as to method and content by the superintendent, cover-
 ing  the  principal branches of the insurance business and requiring, in
 the case of a  license  under  subparagraph  (B)  of  paragraph  one  of
 subsection  (b)  of this section, not less than ninety hours, and in the
 case of a license under subparagraph (A) of paragraph one of  subsection
 (b)  of this section, not less than forty hours of classroom work or the
 equivalent thereof in correspondence work. [Such] THE course or  courses

 S. 5805                             8
 
 either  were  given  by  a degree conferring college or university which
 [has] HAD, when [such] THE course [is] WAS taken by such  individual,  a
 curriculum  or curricula registered with the state education department,
 whether  [such]  THE course [be] WAS given as a part of any such curric-
 ulum or separately, [or were given by the The College of Insurance,]  or
 by  any other institution [which] THAT maintains equivalent standards of
 instruction[, which has been continuously in existence for not less than
 five years prior to the taking of such course by such  individual,]  and
 [which shall have been] WAS approved for such purpose by the superinten-
 dent.
   (B)  [He]  THE  INDIVIDUAL  shall  have  been regularly employed by an
 insurance company or an insurance agent or an insurance  broker,  for  a
 period  or  periods  aggregating not less than one year during the three
 years next preceding the date of application, in the case of  a  license
 under  subparagraph  (B)  of  paragraph  one  of  subsection (b) of this
 section, in responsible insurance duties relating to the underwriting or
 adjusting of losses in any one or more  of  the  following  branches  of
 insurance: fire, marine, liability and workers' compensation, and fidel-
 ity and surety; in the case of a license under subparagraph (A) of para-
 graph  one  of  subsection  (b) of this section in responsible insurance
 duties relating to the use of life insurance, accident and health insur-
 ance and annuity contracts in the design and administration of plans for
 estate conservation and distribution,  employee  benefits  and  business
 continuation;  and  [he]  THE  INDIVIDUAL  shall  submit with his OR HER
 application a statement subscribed and affirmed as true under the penal-
 ties of perjury by such employer or employers stating facts [which] THAT
 show compliance with this requirement.
   (C) [He] THE INDIVIDUAL shall  have  been  regularly  employed  by  an
 insurance  company  or  an insurance agent or an insurance broker, for a
 period or periods aggregating not less than one year, during  the  three
 years  next preceding the date of entrance into the service of the armed
 forces of the United States or immediately following [his] THE  INDIVID-
 UAL'S  discharge  therefrom, in the case of a license under subparagraph
 (B) of paragraph one of subsection (b) of this section,  in  responsible
 insurance  duties relating to the underwriting or adjusting of losses in
 any one or more of the following branches of  insurance:  fire,  marine,
 liability  and  workers'  compensation,  and fidelity and surety; in the
 case of a license under subparagraph (A) of paragraph one of  subsection
 (b)  of this section in responsible insurance duties relating to the use
 of life insurance, accident and health insurance and  annuity  contracts
 in  the  design  and administration of plans for estate conservation and
 distribution, employee benefits and business continuation; provided  the
 application  for  such license is filed within one year from the date of
 discharge; and [he] THE LICENSEE shall submit with his OR  HER  applica-
 tion  a statement subscribed and affirmed as true under the penalties of
 perjury by such employer or employers stating facts  [which]  THAT  show
 compliance with this requirement.
   §  11.  Subparagraph  (B)  of paragraph 1 of subsection (e) of section
 2104 of the insurance law, as amended by chapter  505  of  the  laws  of
 2000, is amended to read as follows:
   (B)  An exemption may be granted, at the discretion of the superinten-
 dent, as to all or any part of the written examination or the  prerequi-
 site course specified in subparagraph (A) of paragraph one of subsection
 (c) of this section, of any individual seeking to be named a licensee or
 sub-licensee,  upon  whom  has  been conferred, in the case of a license
 under subparagraph (B) of  paragraph  one  of  subsection  (b)  of  this

 S. 5805                             9
 
 section,  the Chartered Property Casualty Underwriter (C.P.C.U.)  desig-
 nation by the American Institute for CHARTERED Property [and  Liability]
 CASUALTY  Underwriters, OR ANY OTHER DESIGNATION THAT THE SUPERINTENDENT
 DETERMINES  IS  ACCEPTABLE PURSUANT TO A REGULATION, or on whom has been
 conferred, in the case of a license under subparagraph (A) of  paragraph
 one  of  subsection  (b) of this section, the Chartered Life Underwriter
 (C.L.U.), Chartered Financial Consultant  (Ch.F.C.)  or  the  Master  of
 Science  in  Financial  Services (M.S.F.S.) designations by the American
 College of Financial [Service  Professionals]  SERVICES,  OR  ANY  OTHER
 DESIGNATION THAT THE SUPERINTENDENT DETERMINES IS ACCEPTABLE PURSUANT TO
 A REGULATION.
   §  12.  Paragraph 2 of subsection (g) of section 2104 of the insurance
 law is REPEALED and paragraphs 3, 4 and 5 are renumbered paragraphs 2, 3
 and 4.
   § 12-a. Paragraph 1 of subsection (f) of section 2104 of the insurance
 law, as amended by section 3 of part F of chapter  59  of  the  laws  of
 2005, is amended to read as follows:
   (1)  At  the time of application for every such license, and for every
 biennial renewal thereof, there shall be paid to the superintendent  for
 each  individual applicant and for each proposed sub-licensee the sum of
 [forty] FORTY-FIVE dollars for each year or fraction of a year in  which
 a  license shall be valid. If, however, the applicant or a proposed sub-
 licensee should withdraw his, HER, or its application or the superinten-
 dent should deny his, HER, or its application before the license applied
 for is issued, THEN the superintendent may refund the fee  paid  by  the
 applicant  for  the  license applied for, excepting any examination fees
 required pursuant to subsection (e) of this section.
   § 13. Paragraph 1 of subsection (a) of section 2107 of  the  insurance
 law is amended to read as follows:
   (1)  The superintendent may issue an insurance consultant's license to
 any person, firm, association or corporation who  or  [which]  THAT  has
 complied  with  the requirements of this chapter with respect to either:
 life insurance, meaning all of those kinds of  insurance  authorized  in
 paragraphs  one,  two  [and], three, AND THIRTY-ONE of subsection (a) of
 section one thousand one hundred thirteen of this chapter, OR  ANY  KIND
 OF  INSURANCE  THAT  THE  SUPERINTENDENT  DETERMINES TO BE SUBSTANTIALLY
 SIMILAR THERETO PURSUANT TO PARAGRAPH THIRTY-TWO OF  SUBSECTION  (A)  OF
 SECTION  ONE  THOUSAND  ONE HUNDRED THIRTEEN OF THIS CHAPTER; or general
 insurance, meaning all of those kinds of insurance authorized  in  para-
 graphs  four  through  [twenty-three]  THIRTY of such subsection, OR ANY
 KIND OF INSURANCE THAT THE SUPERINTENDENT DETERMINES TO BE SUBSTANTIALLY
 SIMILAR THERETO PURSUANT TO PARAGRAPH THIRTY-TWO OF  SUBSECTION  (A)  OF
 SECTION  ONE THOUSAND ONE HUNDRED THIRTEEN OF THIS CHAPTER, as specified
 in such license.
   § 14. Paragraph 2 of subsection (c) of section 2107 of  the  insurance
 law is amended to read as follows:
   (2)  The superintendent may accept, in lieu of any part or all of such
 examination, the result of any previous written examination given by the
 superintendent, [The] THE American College OF  FINANCIAL  SERVICES,  the
 American  [College  of] INSTITUTE FOR CHARTERED Property [and Liability]
 CASUALTY Underwriters, the Society of Actuaries, the Casualty  Actuarial
 Society,  the  American Academy of Actuaries or any similar organization
 [which] THAT administers professional examinations.
   § 15. Section 2110 of the insurance law, as amended by chapter 687  of
 the  laws  of  2003,  the  section  heading,  subsections (a) and (b) as
 amended by chapter 499 of the laws of 2009, paragraph 15  of  subsection

 S. 5805                            10
 
 (a) as added and paragraphs 16 and 17 of subsection (a) as renumbered by
 chapter 546 of the laws of 2013, is amended to read as follows:
   § 2110. Revocation or suspension of license OR AUTHORIZATION of insur-
 ance  producer, insurance consultant, adjuster, COURSE PROVIDER, or life
 settlement broker. (a) The superintendent may refuse to  renew,  revoke,
 or may suspend for a period the superintendent determines the license OR
 AUTHORIZATION of any insurance producer, insurance consultant, adjuster,
 COURSE  PROVIDER  AUTHORIZED  UNDER  SECTION  TWO  THOUSAND  ONE HUNDRED
 FORTY-ONE OF THIS CHAPTER, or life settlement broker, if,  after  notice
 and  hearing,  the  superintendent  determines  that the licensee or any
 sub-licensee OR THE COURSE PROVIDER has:
   (1) violated any insurance laws, [or violated] any regulation, subpoe-
 na or order of  the  superintendent  or  of  another  state's  insurance
 commissioner,  [or  has  violated]  ANY STANDARD OF THE NATIONAL ASSOCI-
 ATION, OR any law in the course of his [or], her,  OR  ITS  dealings  in
 such capacity;
   (2)  provided  materially incorrect, materially misleading, materially
 incomplete or materially untrue information in the license  application,
 PROVIDER ORGANIZATION APPLICATION, OR COURSE SUBMISSION APPLICATION;
   (3) obtained or attempted to obtain a license OR AUTHORIZATION through
 misrepresentation 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,  or  its  equivalent, denied, suspended or revoked in any other
 state, province, district, COMMONWEALTH, or territory OR BY THE NATIONAL
 ASSOCIATION;
   (10) forged [another's] ANOTHER PERSON'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 public adjuster, the licensee has failed to act
 on  behalf and in the best interests of the insured when negotiating for
 or effecting the settlement of an insurance claim for  such  insured  or
 otherwise acting as a public adjuster, or has failed to make the disclo-

 S. 5805                            11
 
 sures  required  by paragraph two of subsection (s) of section two thou-
 sand one hundred eight of this article;
   (16)  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
   (17)  ceased  to  meet the requirements for licensure OR AUTHORIZATION
 under this chapter.
   (b) Before revoking or suspending the license of any insurance produc-
 er, life settlement broker or other licensee pursuant to the  provisions
 of this article, the superintendent shall, except when proceeding pursu-
 ant  to  subsection  (f)  of  this section, give notice to the licensee,
 COURSE PROVIDER, 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.
   (c) If an insurance producer's license or other licensee's license  OR
 COURSE PROVIDER'S AUTHORIZATION pursuant to the provisions of this arti-
 cle  is revoked or suspended by the superintendent, [he] THEN THE SUPER-
 INTENDENT shall forthwith give notice to the licensee.
   (d) The revocation or suspension of any insurance  producer's  license
 or  other licensee's license OR COURSE PROVIDER'S AUTHORIZATION pursuant
 to the provisions of this article shall terminate forthwith such produc-
 er's license or other licensee's license OR COURSE  PROVIDER'S  AUTHORI-
 ZATION, and the authority conferred thereby upon all sub-licensees.
   (e)  (1) No individual, corporation, firm or association whose license
 as an insurance producer or other licensee OR COURSE PROVIDER subject to
 subsection (a) of this section has been revoked, and no firm or  associ-
 ation  of which such individual is a member, and no corporation of which
 such individual is an officer or director, shall be entitled  to  obtain
 any  license OR AUTHORIZATION under the provisions of this chapter for a
 period of [one year] THREE YEARS after  such  revocation,  or,  if  such
 revocation  be judicially reviewed, for [one year] THREE YEARS after the
 final determination thereof affirming the action of  the  superintendent
 in revoking such license OR AUTHORIZATION.
   (2)  If  any such license OR AUTHORIZATION held by a firm, association
 or corporation be revoked, no member of such firm or association and  no
 officer  or director of such corporation shall be entitled to obtain any
 license OR AUTHORIZATION, or to be named as a sub-licensee in  any  such
 license,  for  the same period of time, unless the superintendent deter-
 mines, after notice and hearing, that such member, officer  or  director
 was  not  personally  at  fault  in  the matter on account of which such
 license OR AUTHORIZATION was revoked.
   (f) (1) As used in this subsection, "non-resident insurance producer's
 license or sub-license" means a license or sub-license in such  capacity
 issued pursuant to paragraph five of subsection (g) of section two thou-
 sand  one  hundred  three  or subsection (e) of section two thousand one
 hundred four of this article.
   (2) A non-resident insurance producer's license or sub-license may  be
 summarily  revoked in the event that the licensee's license as an agent,
 broker, adjuster or in any other capacity under the insurance law of the
 licensee's home state of domicile or THE STANDARDS OF THE NATIONAL ASSO-
 CIATION, OR such license of the firm or association of which the  licen-
 see is a member, employee or sub-licensee, or such license of the corpo-
 ration  of  which  the  licensee  is  an  officer, director, employee or
 sub-licensee, has been suspended or revoked, or renewal thereof  denied,
 in  the licensee's home state of domicile OR BY THE NATIONAL ASSOCIATION

 S. 5805                            12
 
 by a procedure affording to the licensee or it a statutory  right  to  a
 hearing,  for action or conduct which, if it had been established upon a
 hearing before the superintendent, would have  constituted  grounds  for
 revocation of a license under subsection (a) of this section.
   (3) Before revoking the license of any non-resident insurance producer
 in accordance with this section, the superintendent shall give ten days'
 notice  in  writing to such producer of the action proposed to be taken,
 which notice shall be given in accordance with the applicable provisions
 of subsections (a) and (d) of FORMER section three hundred three of this
 chapter.
   (4) Upon submission to the superintendent of satisfactory proof that a
 suspension or revocation of a license issued by  a  home  state  OR  THE
 NATIONAL  ASSOCIATION  to  act  as an insurance agent, insurance broker,
 adjuster or in another licensed capacity under the insurance law of such
 other state OR STANDARDS OF THE NATIONAL ASSOCIATION,  or  a  denial  of
 renewal thereof, has been duly withdrawn, set aside, reversed or voided,
 the  superintendent  shall  thereupon  reinstate and restore any and all
 licenses revoked in accordance with the provisions of this subsection.
   (g) If any licensed insurance producer or any person  aggrieved  shall
 file  with  the  superintendent a verified complaint setting forth facts
 tending to show sufficient ground for the revocation  or  suspension  of
 any  insurance  producer's  license,  or if any licensed adjuster or any
 person aggrieved files with  the  superintendent  a  verified  complaint
 setting  forth  facts  showing  sufficient grounds for the suspension or
 revocation of any adjuster's license, the  superintendent  shall,  after
 notice  and a hearing, determine whether such license shall be suspended
 or revoked.
   (h) The superintendent shall  retain  the  authority  to  enforce  the
 provisions  of and impose any penalty or remedy authorized by this chap-
 ter against any person or entity  who  is  under  investigation  for  or
 charged  with a violation of this chapter, even if the person's or enti-
 ty's license [or], registration, OR AUTHORIZATION has been  surrendered,
 or has expired or has lapsed by operation of law.
   (i) A licensee OR COURSE PROVIDER subject to this article shall report
 to the superintendent any administrative action taken against the licen-
 see  OR  COURSE  PROVIDER  in another jurisdiction or by another govern-
 mental agency in this state within thirty days of the final  disposition
 of the matter. This report shall include a copy of the order, consent to
 order or other relevant legal documents.
   (j)  Within thirty days of the initial pretrial hearing date, a licen-
 see OR COURSE PROVIDER subject to  this  article  shall  report  to  the
 superintendent  any  criminal  prosecution  of  the  licensee  OR COURSE
 PROVIDER taken in any jurisdiction. The report shall include a  copy  of
 the  initial  complaint  filed, the order resulting from the hearing and
 any other relevant legal documents.
   § 16. Paragraphs 3  and  4  of  subsection  (b)  and  paragraph  1  of
 subsection  (c) of section 2132 of the insurance law, paragraphs 3 and 4
 of subsection (b) as amended by section 13 of part V of  chapter  57  of
 the  laws of 2014, and paragraph 1 of subsection (c) as added by chapter
 656 of the laws of 1992, are amended and a new paragraph 5 is  added  to
 subsection (b) to read as follows:
   (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]

 S. 5805                            13
 
   (4) for purposes of a  title  insurance  agent  license,  an  attorney
 licensed  to  practice law in this state, provided that such attorney is
 in good standing with the  New  York  state  office  of  court  adminis-
 tration[.]; OR
   (5) AN INSURANCE PRODUCER WHO IS A MEMBER OF THE NATIONAL ASSOCIATION,
 PROVIDED  THE  INSURANCE PRODUCER COMPLIES WITH THE CONTINUING EDUCATION
 REQUIREMENTS OF THE INSURANCE PRODUCER'S HOME STATE AND OF THE  NATIONAL
 ASSOCIATION.
   (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] TWENTY-FOUR credit hours of instruction, OF
 WHICH THREE CREDIT HOURS SHALL BE IN AN APPROVED ETHICS COURSE.
   §  17. Subsection (i) of section 2132 of the insurance law is REPEALED
 and subsection (j) is relettered subsection (i).
   § 18. Paragraph 2 of subsection (d) of section 2137 of  the  insurance
 law,  as added by chapter 499 of the laws of 2009, is amended to read as
 follows:
   (2) [The superintendent may require any individual named in the appli-
 cation for such license to submit a set  of  fingerprints,  unless  such
 applicant  is  licensed  as  an  insurance  producer with a life line of
 authority. Such fingerprints shall be submitted to the division of crim-
 inal justice services for a state  criminal  history  record  check,  as
 defined  in subdivision one of section three thousand thirty-five of the
 education law, and may be submitted to the federal  bureau  of  investi-
 gation  for  a national criminal history record check. 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 infor-
 mation contained in such record pursuant to regulations  and  procedures
 established  by  the division of criminal justice services. All determi-
 nations to grant or  deny  clearance  for  licensure  pursuant  to  this
 section  shall  be in accordance with subdivision 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.
   § 19. Subparagraph (D) of paragraph 1 of  subsection  (f)  of  section
 2137  of the insurance law, as added by chapter 499 of the laws of 2009,
 is amended to read as follows:
   (D) in the discretion of the superintendent, as to all or any part  of
 the   written  examination  or  the  prerequisite  course  specified  in
 subsection (e) of this section, of any individual seeking to be named  a
 licensee  or  sub-licensee,  upon  whom has been conferred the Chartered
 Life Underwriter  (C.L.U.)  [or  Chartered  Life  Underwriter  Associate
 designation], CHARTERED FINANCIAL CONSULTANT (CH.F.C.), OR THE MASTER OF
 SCIENCE IN FINANCIAL SERVICES (M.S.F.S.) DESIGNATIONS by [The] THE Amer-
 ican  College  OF  FINANCIAL SERVICES, OR ANY OTHER DESIGNATION THAT THE
 SUPERINTENDENT DETERMINES IS ACCEPTABLE PURSUANT TO A REGULATION; or

 S. 5805                            14
 
   § 20. The insurance law is amended by adding a  new  section  2140  to
 read as follows:
   § 2140. FINGERPRINT   REQUIREMENT.    (A)(1)  EXCEPT  AS  PROVIDED  IN
 SUBSECTION (B) OF THIS SECTION, THE SUPERINTENDENT MAY REQUIRE ANY INDI-
 VIDUAL NAMED IN AN APPLICATION FOR A LICENSE UNDER THIS ARTICLE OR UNDER
 ARTICLE SIXTY-FIVE OR SIXTY-EIGHT OF THIS CHAPTER, TO SUBMIT  A  SET  OF
 FINGERPRINTS.  SUCH  FINGERPRINTS  SHALL BE SUBMITTED TO THE DIVISION OF
 CRIMINAL JUSTICE SERVICES FOR A STATE CRIMINAL HISTORY RECORD CHECK, AND
 MAY BE SUBMITTED TO THE FEDERAL BUREAU OF INVESTIGATION FOR  A  NATIONAL
 CRIMINAL  HISTORY  RECORD  CHECK. ALL SUCH CRIMINAL HISTORY RECORDS MADE
 AVAILABLE TO THE SUPERINTENDENT PURSUANT TO THIS SECTION SHALL BE CONFI-
 DENTIAL 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.
   (2)  THE SUPERINTENDENT SHALL INFORM SUCH APPLICANT THAT HE OR SHE MAY
 OBTAIN A COPY OF HIS OR HER CRIMINAL HISTORY RECORD  MAINTAINED  BY  THE
 DIVISION  OF  CRIMINAL  JUSTICE  SERVICES, IF ANY, AND MAY CHALLENGE THE
 COMPLETENESS OR ACCURACY OF THE INFORMATION CONTAINED  IN  SUCH  RECORD,
 PURSUANT  TO  REGULATIONS  AND PROCEDURES ESTABLISHED BY THE DIVISION OF
 CRIMINAL JUSTICE SERVICES.
   (3) ALL DETERMINATIONS TO GRANT OR DENY CLEARANCE FOR LICENSURE PURSU-
 ANT TO THIS SECTION SHALL BE IN ACCORDANCE WITH SUBDIVISION  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 APPLI-
 CATION, 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.
   (B) THE SUPERINTENDENT SHALL WAIVE THE FINGERPRINTING REQUIREMENT  FOR
 A  NONRESIDENT  PRODUCER  LICENSE  APPLICANT  AS PROVIDED IN SECTION TWO
 THOUSAND ONE HUNDRED THIRTY-SIX OF THIS ARTICLE.
   § 21. The insurance law is amended by adding a  new  section  2141  to
 read as follows:
   § 2141. COURSE PROVIDERS.  (A) ANY ENTITY ELIGIBLE TO PROVIDE COURSES,
 PROGRAMS  OF  INSTRUCTION,  OR  SEMINARS IN ACCORDANCE WITH THIS ARTICLE
 SHALL FILE FOR AUTHORIZATION BY THE SUPERINTENDENT ON A BIENNIAL  BASIS,
 TO  CONFORM WITH ITS AREA OF INSTRUCTION, A PROVIDER ORGANIZATION APPLI-
 CATION AND A COURSE SUBMISSION APPLICATION FOR EACH COURSE, PROGRAM  AND
 SEMINAR.
   (B)  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 FEES.
   (C) THE COMPLETED APPLICATION 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.
   §  22.  The  insurance  law is amended by adding a new section 2142 to
 read as follows:
   § 2142. NATIONAL ASSOCIATION OF REGISTERED AGENTS AND BROKERS.  (A)(1)
 A NONRESIDENT INSURANCE PRODUCER THAT IS A MEMBER OF THE NATIONAL  ASSO-
 CIATION  AND  THAT PAYS THE LICENSING FEE SET BY THIS STATE FOR ANY LINE
 OF AUTHORITY AND TYPE OF INSURANCE PRODUCER  LICENSE  SPECIFIED  IN  THE
 HOME  STATE  LICENSE  OF THE INSURANCE PRODUCER SHALL BE DEEMED TO BE AN
 INSURANCE PRODUCER FOR THE PURPOSE OF THIS CHAPTER. IF THE HOME STATE OF

 S. 5805                            15
 
 THE INSURANCE PRODUCER DOES NOT SPECIFY SEPARATE LICENSES FOR AN  INSUR-
 ANCE AGENT AND INSURANCE BROKER, THEN:
   (A) IF THE INSURANCE PRODUCER IS APPOINTED BY AN INSURER AS ITS AGENT,
 THEN  THE  INSURANCE  PRODUCER SHALL PAY THE LICENSING FEE FOR INSURANCE
 AGENT AND SHALL BE SUBJECT TO ALL OF THE REQUIREMENTS  OF  THIS  CHAPTER
 APPLICABLE TO INSURANCE AGENTS WHEN ACTING IN SUCH CAPACITY; AND
   (B)  IF THE INSURANCE PRODUCER IS NOT ACTING AS AGENT FOR THE INSURER,
 THEN THE INSURANCE PRODUCER SHALL PAY THE LICENSING  FEE  FOR  INSURANCE
 BROKER  AND  SHALL BE SUBJECT TO ALL OF THE REQUIREMENTS OF THIS CHAPTER
 APPLICABLE TO INSURANCE BROKERS WHEN ACTING IN SUCH CAPACITY.
   (2) A NONRESIDENT  INSURANCE  CONSULTANT  THAT  IS  A  MEMBER  OF  THE
 NATIONAL  ASSOCIATION  AND THAT PAYS THE LICENSING FEE SET BY THIS STATE
 FOR ANY LINE OF AUTHORITY SPECIFIED IN THE HOME  STATE  LICENSE  OF  THE
 INSURANCE  CONSULTANT  SHALL BE DEEMED TO BE AN INSURANCE CONSULTANT FOR
 THE PURPOSE OF THIS CHAPTER.
   (B) MEMBERSHIP IN THE NATIONAL ASSOCIATION SHALL:
   (1)(A) AUTHORIZE A NONRESIDENT INSURANCE PRODUCER TO SELL, SOLICIT, OR
 NEGOTIATE INSURANCE IN THIS STATE FOR WHICH THE INSURANCE PRODUCER  PAYS
 THE  LICENSING  FEE SET BY THIS STATE FOR ANY LINE OF AUTHORITY AND TYPE
 OF INSURANCE PRODUCER LICENSE SPECIFIED IN THE HOME STATE LICENSE OF THE
 INSURANCE PRODUCER, AND EXERCISE ALL SUCH INCIDENTAL POWERS AS SHALL  BE
 NECESSARY  TO CARRY OUT SUCH ACTIVITIES, INCLUDING CLAIMS ADJUSTMENT AND
 SETTLEMENT TO THE EXTENT PERMISSIBLE UNDER THIS  ARTICLE,  RISK  MANAGE-
 MENT, EMPLOYEE BENEFITS ADVICE, RETIREMENT PLANNING, AND ANY OTHER INSU-
 RANCE-RELATED CONSULTING ACTIVITIES;
   (B) AUTHORIZE AN INSURANCE CONSULTANT TO EXAMINE, APPRAISE, REVIEW, OR
 EVALUATE  ANY  INSURANCE  POLICY,  ANNUITY  OR PENSION CONTRACT, PLAN OR
 PROGRAM, OR MAKE RECOMMENDATIONS OR GIVE ADVICE WITH REGARD  TO  ANY  OF
 THE  FOREGOING  FOR  ANY  LINE  OF AUTHORITY SPECIFIED IN THE HOME STATE
 LICENSE OF THE INSURANCE CONSULTANT;
   (2) BE THE EQUIVALENT OF A:
   (A) NONRESIDENT INSURANCE PRODUCER LICENSE FOR PURPOSE OF  AUTHORIZING
 THE INSURANCE PRODUCER TO ENGAGE IN THE ACTIVITIES DESCRIBED IN SUBPARA-
 GRAPH  (A)  OF  PARAGRAPH  ONE  OF  THIS SUBSECTION IN THIS STATE IF THE
 INSURANCE PRODUCER PAYS THE LICENSING FEE SET BY THIS STATE; AND
   (B) NONRESIDENT INSURANCE CONSULTANT LICENSE FOR PURPOSE OF  AUTHORIZ-
 ING  THE  INSURANCE  CONSULTANT TO ENGAGE IN THE ACTIVITIES DESCRIBED IN
 SUBPARAGRAPH (B) OF PARAGRAPH ONE OF THIS SUBSECTION IN  THIS  STATE  IF
 THE INSURANCE PRODUCER PAYS THE LICENSING FEE SET BY THIS STATE; AND
   (3)  BE THE EQUIVALENT OF A NONRESIDENT INSURANCE PRODUCER LICENSE FOR
 THE PURPOSE OF SUBJECTING AN INSURANCE  PRODUCER  TO  THIS  CHAPTER  AND
 REGULATIONS  PROMULGATED  THEREUNDER AND BE THE EQUIVALENT OF A NONRESI-
 DENT INSURANCE CONSULTANT LICENSE  FOR  THE  PURPOSE  OF  SUBJECTING  AN
 INSURANCE  CONSULTANT TO THIS CHAPTER AND REGULATIONS PROMULGATED THERE-
 UNDER, CONCERNING REFUSAL TO RENEW, REVOCATION, SUSPENSION, OR ANY OTHER
 ENFORCEMENT ACTION RELATED TO THE ABILITY OF AN  INSURANCE  PRODUCER  OR
 INSURANCE  CONSULTANT  TO  ENGAGE  IN  ANY  ACTIVITY WITHIN THE SCOPE OF
 AUTHORITY GRANTED UNDER THIS SUBSECTION AND TO  ALL  STATE  LAWS,  REGU-
 LATIONS, PROVISIONS, AND ACTIONS PRESERVED UNDER 15 U.S.C. § 6753(E)(5).
   (C)  A NONRESIDENT INSURANCE PRODUCER THAT IS A MEMBER OF THE NATIONAL
 ASSOCIATION AND THAT PAYS THE LICENSING FEE SET BY THIS  STATE  FOR  ANY
 LINE  OF  AUTHORITY  AND TYPE OF INSURANCE PRODUCER LICENSE SPECIFIED IN
 THE HOME STATE LICENSE OF  THE  INSURANCE  PRODUCER,  OR  A  NONRESIDENT
 INSURANCE  CONSULTANT  THAT  IS A MEMBER OF THE NATIONAL ASSOCIATION AND
 THAT PAYS THE LICENSING FEE SET BY THIS STATE FOR ANY LINE OF  AUTHORITY
 SPECIFIED  IN  THE HOME STATE LICENSE OF THE INSURANCE CONSULTANT, SHALL

 S. 5805                            16
 
 BE SUBJECT TO ALL APPLICABLE LAWS OF THIS STATE,  EXCEPT  THAT  SUCH  AN
 INSURANCE PRODUCER OR INSURANCE CONSULTANT SHALL BE EXEMPT FROM ANY LAW,
 REGULATION,  PROVISION,  OR  OTHER  ACTION THAT IS INCONSISTENT WITH THE
 PROVISIONS  OF  15  U.S.C.  §  6751 ET. SEQ. RELATED TO MARKET ENTRY FOR
 NONRESIDENT INSURANCE PRODUCERS OR  NONRESIDENT  INSURANCE  CONSULTANTS,
 AND THEN ONLY TO THE EXTENT OF THE INCONSISTENCY.
   § 23. Section 6505 of the insurance law is REPEALED.
   § 24. Subsection (d) of section 7803 of the insurance law, as added by
 chapter 499 of the laws of 2009, is amended to read as follows:
   (d)  The  superintendent  may require an applicant for such license to
 submit a set of fingerprints. Such fingerprints shall  be  submitted  to
 the  division  of criminal justice services for a state criminal history
 record check[, as defined in subdivision one of section  three  thousand
 thirty-five  of  the education law], and may be submitted to the federal
 bureau of investigation for a national criminal  history  record  check.
 All  such  criminal  history records [sent] MADE AVAILABLE to the super-
 intendent 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] INFORM such applicant [with] THAT HE OR SHE MAY OBTAIN a
 copy of his or her criminal history record MAINTAINED BY THE DIVISION OF
 CRIMINAL JUSTICE SERVICES, 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] MAY CHALLENGE THE
 COMPLETENESS OR ACCURACY OF THE information  contained  in  such  record
 pursuant  to  regulations  and procedures established by the division of
 criminal justice services.  All determinations to grant or  deny  clear-
 ance  for licensure pursuant to this section shall be in accordance with
 subdivision sixteen of section two hundred ninety-six of  the  executive
 law  and  article  twenty-three-A of the correction law. When the super-
 intendent 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 determi-
 nation.
   § 25. Subsection (f) of section 7804 of the insurance law, as added by
 chapter 499 of the laws of 2009, is amended to read as follows:
   (f)  The superintendent may require an applicant for such registration
 to submit a set of fingerprints. Such fingerprints shall be submitted to
 the division of criminal justice services for a state  criminal  history
 record  check[,  as defined in subdivision one of section three thousand
 thirty-five of the education law], and may be submitted to  the  federal
 bureau  of  investigation  for a national criminal history record check.
 All such criminal history records [sent] MADE AVAILABLE  to  the  super-
 intendent  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] INFORM such applicant [with] THAT HE OR SHE MAY OBTAIN a
 copy of his or her criminal history record MAINTAINED BY THE DIVISION OF
 CRIMINAL  JUSTICE  SERVICES,  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]  MAY  CHALLENGE  THE
 COMPLETENESS  OR  ACCURACY  OF  THE information contained in such record
 pursuant to regulations and procedures established by  the  division  of
 criminal  justice services.   All determinations to grant or deny clear-

 S. 5805                            17
 
 ance for registration pursuant to this section shall  be  in  accordance
 with subdivision sixteen of section two hundred ninety-six of the execu-
 tive  law  and  article  twenty-three-A  of the correction law. When the
 superintendent  denies  an  application, written notice of such determi-
 nation 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.
   §  26.  Paragraph 1 of subsection (d) of section 2118 of the insurance
 law, as amended by section 13 of part I of chapter 61  of  the  laws  of
 2011, is amended to read as follows:
   (1)  Where  this  state  is  the insured's home state, a person, firm,
 association or  corporation  licensed  pursuant  to  the  provisions  of
 section  two  thousand one hundred five of this article shall pay to the
 superintendent a sum equal to three and six-tenths percent of the  gross
 premiums  charged the insureds by the insurers for insurance procured by
 such licensee pursuant to such license, less the amount of such premiums
 returned to such insureds.  WHERE THE INSURANCE COVERS PROPERTY OR RISKS
 LOCATED OR RESIDENT BOTH IN AND OUTSIDE OF THE  UNITED  STATES  AND  THE
 INSURED'S HOME STATE IS THIS STATE, THE SUM PAYABLE SHALL BE COMPUTED ON
 THAT  PORTION  OF  THE  GROSS PREMIUMS ALLOCATED TO THE RISKS LOCATED OR
 RESIDENT IN THE UNITED STATES PURSUANT TO SUBSECTION (B) OF SECTION NINE
 THOUSAND ONE HUNDRED TWO OF THIS CHAPTER LESS THE AMOUNT OF GROSS PREMI-
 UMS ALLOCATED TO THE RISKS LOCATED OR RESIDENT IN THE UNITED STATES  AND
 RETURNED TO THE INSURED.
   §  27.  Section 9102 of the insurance law, as amended by section 14 of
 part I of chapter 61 of the laws of 2011, is amended to read as follows:
   § 9102. Allocation  of  premiums.  [In]  (A)  EXCEPT  AS  PROVIDED  IN
 SUBSECTION  (B)  OF  THIS  SECTION,  IN determining the amount of direct
 premiums taxable in this state, all such premiums written, procured,  or
 received  in  this  state  shall  be deemed written on property or risks
 located or resident in this state, except such premiums  properly  allo-
 cated and reported as taxable premiums of any other state or states.
   (B)(1)  IN  DETERMINING  THE  AMOUNT OF GROSS PREMIUMS TAXABLE IN THIS
 STATE PURSUANT TO PARAGRAPH ONE OF SUBSECTION (D) OF SECTION  TWO  THOU-
 SAND  ONE  HUNDRED EIGHTEEN OF THIS CHAPTER, WHERE A PLACEMENT OF EXCESS
 LINE INSURANCE COVERS PROPERTY OR RISKS LOCATED OR RESIDENT BOTH IN  THE
 UNITED STATES AND OUTSIDE THE UNITED STATES AND THE INSURED'S HOME STATE
 IS  THIS  STATE, THE SUM PAID TO THE SUPERINTENDENT SHALL BE COMPUTED ON
 THAT PORTION OF THE POLICY PREMIUM THAT IS ATTRIBUTABLE TO  PROPERTY  OR
 RISKS  LOCATED OR RESIDENT IN THE UNITED STATES, AS DETERMINED BY REFER-
 ENCE TO AN ALLOCATION SCHEDULE PRESCRIBED BY  THE  SUPERINTENDENT  IN  A
 REGULATION.
   (2)  IF  THE  ALLOCATION  SCHEDULE  DOES NOT IDENTIFY A CLASSIFICATION
 APPROPRIATE TO THE PROPERTY OR RISK BEING INSURED, AN ALTERNATIVE METHOD
 OF EQUITABLE ALLOCATION SHALL BE USED FOR SUCH COVERAGE. IN THAT CIRCUM-
 STANCE, DOCUMENTED EVIDENCE OF THE UNDERWRITING BASES AND OTHER CRITERIA
 USED BY THE INSURER SHALL BE GIVEN SIGNIFICANT WEIGHT BY THE SUPERINTEN-
 DENT.
   (3) THE LICENSEE SHALL REPORT THE METHOD OF ALLOCATION UTILIZED  IN  A
 FORM  AND  IN A MANNER PRESCRIBED BY THE SUPERINTENDENT IN A REGULATION.
 WHERE THE LICENSEE BASES THE ALLOCATION  ON  AN  ALTERNATIVE  METHOD  OF
 EQUITABLE  ALLOCATION, THE LICENSEE SHALL PROVIDE ADDITIONAL INFORMATION
 IN SUPPORT OF THE ALLOCATION AS THE SUPERINTENDENT MAY REQUIRE.
   (4) IF THE SUPERINTENDENT REASONABLY DETERMINES THAT  THE  INFORMATION
 PROVIDED  IS  INSUFFICIENT  TO  SUBSTANTIATE THE METHOD OF ALLOCATION OR
 THAT THE METHOD USED IS INCORRECT, THE  SUPERINTENDENT  SHALL  DETERMINE

 S. 5805                            18

 THE  SUM  TO  BE  PAID  IN  ACCORDANCE WITH THE METHOD PRESCRIBED BY THE
 SUPERINTENDENT IN THE REGULATION. THE SUPERINTENDENT'S DETERMINATION  OF
 THE  SUM  TO  BE  PAID SHALL FINALLY AND IRREVOCABLY FIX THE TAX UNLESS,
 WITHIN  THIRTY  DAYS  OF  NOTIFICATION  OF THE SUPERINTENDENT'S DETERMI-
 NATION, THE LICENSEE REQUESTS A HEARING TO DISPUTE THE DETERMINATION.
   § 28. Section 1552 of the tax law, as amended by section 18 of part  I
 of chapter 61 of the laws of 2011, is amended to read as follows:
   § 1552. Allocation.  [Where] (A) EXCEPT AS PROVIDED IN SUBDIVISION (B)
 OF  THIS  SECTION,  WHERE  the  taxable  insurance contract covers risks
 located or resident both within and without this state and  the  taxpay-
 er's  home  state  is New York, one hundred percent of premiums shall be
 allocable to this state.
   (B) WHERE THE INSURANCE COVERS PROPERTY OR RISKS LOCATED  OR  RESIDENT
 BOTH  IN  AND OUTSIDE OF THE UNITED STATES AND THE TAXPAYER'S HOME STATE
 IS NEW YORK, THE SUM PAYABLE SHALL BE COMPUTED ON THAT  PORTION  OF  THE
 GROSS  PREMIUMS ALLOCATED TO THE RISKS LOCATED OR RESIDENT IN THE UNITED
 STATES LESS THE AMOUNT OF GROSS PREMIUMS ALLOCATED TO THE RISKS  LOCATED
 OR  RESIDENT  IN  THE  UNITED  STATES AND RETURNED TO THE INSURED.   THE
 AMOUNT OF PREMIUMS ALLOCABLE TO RISKS RESIDENT  OR  LOCATED  WITHIN  THE
 UNITED  STATES SHALL BE DETERMINED IN A MANNER CONSISTENT WITH THE RULES
 AND REGULATIONS PROMULGATED BY THE SUPERINTENDENT OF FINANCIAL  SERVICES
 PURSUANT  TO  SUBSECTION (B) OF SECTION NINE THOUSAND ONE HUNDRED TWO OF
 THE INSURANCE LAW.
   § 29. This act shall take effect immediately, provided, however, that:
   (1) the provisions of sections eighteen, twenty, twenty-four and twen-
 ty-five of this act shall take effect on the one hundred  eightieth  day
 after it shall have become a law;
   (2)  the license of each person, firm, association or corporation that
 is licensed as a mortgage guaranty insurance agent as of  the  effective
 date  of  this act shall expire one year after the enactment of this act
 and each such person, firm, association or corporation  that  wishes  to
 remain  licensed  shall  submit a renewal application in accordance with
 section 2103 of the insurance law;
   (3) the provisions of sections twenty-six,  twenty-seven  and  twenty-
 eight of this act shall apply to insurance contracts that have an effec-
 tive date on or after July 21, 2011; and
   (4)  effective  immediately,  the superintendent of financial services
 may repeal, amend, or promulgate any rules and regulations necessary for
 the implementation of the provisions of this act on its effective date.
   § 2. Severability clause. If any clause, sentence, subparagraph, para-
 graph, subsection, section, or part of this act shall be adjudged by any
 court of competent jurisdiction to be invalid, such judgment  shall  not
 affect,  impair,  or  invalidate  the  remainder  thereof,  but shall be
 confined in its operation to the clause, sentence,  subparagraph,  para-
 graph,  subsection,  section,  or  part thereof directly involved in the
 controversy in which such judgment shall have been rendered. It is here-
 by declared to be the intent of the legislature that this act would have
 been enacted even if such invalid provisions had not been included ther-
 ein.
   § 3. This act shall take effect immediately, provided,  however,  that
 the  applicable effective date of Parts A through B of this act shall be
 as specifically set forth in the last section of such Parts.

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Senate Bill S5805

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Archive: Last Bill Status - In Senate Committee Insurance Committee

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Sponsored By

James L. Seward

Archive: Last Bill Status - In Senate Committee Insurance Committee

Actions

2017-S5805 (ACTIVE) - Details

2017-S5805 (ACTIVE) - Summary

2017-S5805 (ACTIVE) - Sponsor Memo

2017-S5805 (ACTIVE) - Bill Text download pdf

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