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Assembly Actions -
Lowercase Senate Actions - UPPERCASE |
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| Jan 03, 2018 |
referred to insurance |
| May 01, 2017 |
referred to insurance |
Senate Bill S5805
2017-2018 Legislative Session
Relates to domestic insurers and the national association of registered agents and brokers; repealer
download bill text pdfSponsored By
(R, C, IP, RFM) Senate District
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
Actions
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) - 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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