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This entry was published on 2022-04-22
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SECTION 2104
Insurance brokers; licensing
Insurance (ISC) CHAPTER 28, ARTICLE 21
§ 2104. Insurance brokers; licensing. (a) (1) The superintendent may
issue an insurance broker's license to any individual, firm, association
or corporation, hereinafter designated as "licensee," who or which is
deemed by him trustworthy and competent to act as a broker in such
manner as to safeguard the interests of the insured, and who or which is
otherwise qualified as herein required, and who or which has complied
with the prerequisites herein prescribed.

(2) The purpose of this section is to protect the public by requiring
and maintaining professional standards of conduct on the part of all
insurance brokers acting as such within this state.

(b) (1) Such license shall confer upon the licensee authority to act
in this state as insurance broker, and upon every natural person named
as sub-licensee in such license authority to act in this state as
insurance broker in the name of and on behalf of such licensee, with
respect to the following lines of authority:

(A) life insurance, variable life and variable annuity products,
accident and health insurance and sickness or any other line of
authority deemed to be similar by the superintendent, including for this
purpose, health maintenance organization contracts and legal services
insurance; or

(B) any and every line of authority, except life insurance and
variable life and variable annuity products.

(2) A license issued to a corporation may name as sub-licensees only
the officers and directors of such corporation, and a license issued to
a firm or association may name as sub-licensees only the individual
members of such firm or association. Each sub-licensee named in such
license must be qualified to obtain a license as an insurance broker,
and for each such sub-licensee a fee must be paid at the times and at
the rates hereinafter specified.

(3) The license shall contain the licensee's name, address, personal
identification number, the date of issuance, the licensee's lines of
authority, the expiration date and any other information the
superintendent deems necessary.

(c) (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
shall comply with the requirements of subparagraph (A), (B) or (C)
following:

(A) He shall have successfully completed a course or courses, approved
as to method and content by the superintendent, covering 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 course or courses either were given
by a degree conferring college or university which has, when such course
is taken by such individual, a curriculum or curricula registered with
the state education department, whether such course be given as a part
of any such curriculum or separately, or were given by the The College
of Insurance, or by any other institution which 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 approved for such purpose by the
superintendent.

(B) He 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 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; and he shall
submit with his application a statement subscribed and affirmed as true
under the penalties of perjury by such employer or employers stating
facts which show compliance with this requirement.

(C) He 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 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 shall submit with his application a statement subscribed and
affirmed as true under the penalties of perjury by such employer or
employers stating facts which show compliance with this requirement.

(2) The requirements of subparagraphs (A), (B) and (C) of paragraph
one hereof shall not apply to any non-resident insurance broker.

(d) (1) Before any such license shall be issued by the superintendent
and before each renewal, there shall be filed in his office a written
application therefor by the proposed licensee and by each proposed
sub-licensee. Such application shall be in the form or forms and
supplements prescribed by the superintendent and contain such
information as he or she shall require and for each business entity, the
sub-licensee or sub-licensees named in the application shall be
designated responsible for the business entity's compliance with the
insurance laws, rules and regulations of this state. In connection with
any such application the superintendent shall have power to examine
under oath any person who has or appears to have relevant information,
and to make an examination of the books, records and affairs of any such
applicant.

(2) The superintendent may require from every applicant and from every
proposed sub-licensee, before issuing any such license or renewal
license, a statement subscribed and affirmed by the applicant and
proposed sub-licensee as true under the penalties of perjury as to the
ownership of any interest in an applicant firm, association or
corporation and as to facts indicating whether any applicant has been by
reason of an existing license, if any, or will be by reason of the
license applied for, receiving any benefit or advantage in violation of
section two thousand three hundred twenty-four of this chapter, and also
as to such facts as he may deem pertinent to the requirements of this
subsection.

(3) The superintendent may refuse to issue a license or renewal
license, as the case may be, to any applicant if he finds that such
applicant has been or will be, as aforesaid, receiving any benefit or
advantage in violation of section two thousand three hundred twenty-four
of this chapter, or if he finds that more than ten percent of the
aggregate net commissions, received during the term of the existing
license, if any, or to be received during the term of the license
applied for, by the applicant, resulted or will result from insurance on
the property and risks set forth in subparagraphs (A), (B) and (C) of
paragraph one of subsection (i) of section two thousand one hundred
three of this article.

(4) Nothing herein shall be deemed to disqualify any applicant by
reason of acts done or facts existing at a time when the same did not,
under the law then in force, constitute or contribute to constituting
such a disqualification.

(e) (1) (A) The superintendent shall, in order to determine the
competency of each applicant for an insurance broker's license, other
than a renewal license, and of each proposed sub-licensee, to act as
insurance broker, require every such person to submit to, and pass to
the satisfaction of the superintendent, a personal written examination
on the branches of the insurance business relevant to such license. Such
examination shall be held at such times and places as the superintendent
shall from time to time determine.

(B) An exemption may be granted, at the discretion of the
superintendent, as to all or any part of the written examination or the
prerequisite 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 section, the Chartered Property Casualty Underwriter (C.P.C.U.)
designation by the American Institute for Property and Liability
Underwriters, 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.

(2) Every individual applying to take any written examination shall,
at the time of applying therefor, pay to the superintendent, or, at the
discretion of the superintendent, directly to any organization that is
under contract to provide examination services, an examination fee of an
amount which is the actual documented administrative cost of conducting
said qualifying examination as certified by the superintendent from time
to time. An examination fee represents an administrative expense and is
not refundable. The superintendent may, whenever in his judgment it
appears advisable in order to determine the competency of any applicant
for a renewal license, or of any proposed sub-licensee to be named
therein, require such person to pass to the satisfaction of the
superintendent, a similar written examination.

(3) The superintendent may issue a license to any person seeking to be
named as licensee or sub-licensee who:

(A) has since July first, nineteen hundred twenty-eight, passed the
examination given by the superintendent for that insurance broker's
license and was licensed as such;

(B) within three years from the date of the receipt of his application
was a similarly licensed insurance broker;

(C) within ten years from the date of the receipt of his application
was, in the case of a license under subparagraph (B) of paragraph one of
subsection (b) of this section, a similarly licensed insurance broker
and during the period of three years next preceding the receipt of his
application was licensed as a property/casualty insurance agent and, in
the case of a license under subparagraph (A) of paragraph one of
subsection (b) of this section, was a similarly licensed insurance
broker and during the period of three years next preceding the receipt
of his application was licensed as a life and accident and health
insurance agent;

(D) has regularly and continuously acted, in the case of a license
under subparagraph (B) of paragraph one of subsection (b) of this
section, as a licensed resident property/casualty and accident and
health insurance agent and, in the case of a license under subparagraph
(A) of paragraph one of subsection (b) of this section, acted as a
licensed life and accident and health insurance agent for a period of at
least five years immediately preceding the date of receipt of his
application;

(E) is a non-resident insurance broker for similar lines;

* (F) served as a member of the armed forces of the United States at
any time, and shall (i) have been discharged under conditions other than
dishonorable, or (ii) has a qualifying condition, as defined in section
three hundred fifty of the executive law, and has received a discharge
other than bad conduct or dishonorable from such service, or (iii) is a
discharged LGBT veteran, as defined in section three hundred fifty of
the executive law, and has received a discharge other than bad conduct
or dishonorable from such service, and who within three years prior to
his entry into the armed forces held a license as insurance broker for
similar lines, provided his application for such license is filed before
one year from the date of final discharge; or

* NB Effective until April 1, 2023

* (F) served as a member of the armed forces of the United States at
any time, and shall (i) have been discharged under conditions other than
dishonorable, or (ii) has a qualifying condition, as defined in section
one of the veterans' services law, and has received a discharge other
than bad conduct or dishonorable from such service, or (iii) is a
discharged LGBT veteran, as defined in section one of the veterans'
services law, and has received a discharge other than bad conduct or
dishonorable from such service, and who within three years prior to his
or her entry into the armed forces held a license as insurance broker
for similar lines, provided his or her application for such license is
filed before one year from the date of final discharge; or

* NB Effective April 1, 2023

(G) was previously licensed for the same line or lines of authority in
another state, provided, however, that the applicant's home state grants
non-resident licenses to residents of this state on the same basis. Such
individual shall also not be required to complete any prelicensing
education. This exemption is only available if the person is currently
licensed in that state or if the application is received within ninety
days of the date of cancellation of the applicant's previous license and
if the prior state issues a certification that, at the time of
cancellation, the applicant was in good standing in that state or the
state's producer database records, maintained by the National
Association of Insurance Commissioners, its affiliates or subsidiaries,
indicate that the producer is or was licensed in good standing for the
line of authority requested. An individual or entity licensed in another
state who moves to this state shall make an application within ninety
days of establishing legal residence to become a resident licensee. No
prelicensing education or examination shall be required of that person
to obtain any line of authority previously held in the prior state
except where the superintendent determines otherwise by regulation.

(f) (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 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 or its application or the
superintendent should deny his or its application before the license
applied for is issued, 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.

* (2) No license fee shall be required of any person who served as a
member of the armed forces of the United States at any time, and who (A)
shall have been discharged, under conditions other than dishonorable, or
(B) has a qualifying condition, as defined in section three hundred
fifty of the executive law, and has received a discharge other than bad
conduct or dishonorable from such service, or (C) is a discharged LGBT
veteran, as defined in section three hundred fifty of the executive law,
and has received a discharge other than bad conduct or dishonorable from
such service, in a current licensing period, for the duration of such
period.

* NB Effective until April 1, 2023

* (2) No license fee shall be required of any person who served as a
member of the armed forces of the United States at any time, and who (A)
shall have been discharged, under conditions other than dishonorable, or
(B) has a qualifying condition, as defined in section one of the
veterans' services law, and has received a discharge other than bad
conduct or dishonorable from such service, or (C) is a discharged LGBT
veteran, as defined in section one of the veterans' services law, and
has received a discharge other than bad conduct or dishonorable from
such service, in a current licensing period, for the duration of such
period.

* NB Effective April 1, 2023

(g) (1) Every insurance broker's license issued pursuant to this
section to a business entity shall be for a term expiring on the
thirtieth day of June of odd-numbered years. On and after January first,
two thousand seven, every license issued pursuant to this section to an
individual, and every license in effect prior to January first, two
thousand seven that was issued pursuant to this section to an
individual, who was born in an odd numbered year, shall expire on the
individual's birthday in each odd numbered year. On and after January
first, two thousand seven, every license issued pursuant to this section
to an individual, and every license in effect prior to January first,
two thousand seven that was issued pursuant to this section to an
individual, who was born in an even numbered year, shall expire on the
individual's birthday in each even numbered year. Every such license may
be renewed for the ensuing period of twenty-four months upon the filing
of an application in conformity with this section. In the case of a
license issued to a new applicant, the superintendent may issue a
license for a term of more than two years, provided however, such term
shall not exceed thirty months. The superintendent may issue such rules
and regulations as the superintendent deems necessary to implement the
terms of this subsection including regulations providing that, prior to
July first, two thousand twenty-three, the registration fees and
continuing education requirements for the renewal of any license issued
to a business entity pursuant to this subsection for a period that is
more than twenty-four months may be increased in proportion to the
length of the period of licensure.

(2) An application for a renewal license shall be filed with the
superintendent not less than sixty days prior to the date the license
expires or the applicant shall be required to pay, in addition to the
fee required in subsection (f) of this section, a further fee for late
filing of ten dollars.

(3) If an application for a renewal license shall have been filed with
the superintendent before the expiration of such license, the license
sought to be renewed shall continue in full force and effect either
until the issuance by the superintendent of the renewal license applied
for or until five days after the superintendent shall have refused to
issue such renewal license and given notice of such refusal to the
applicant and to each proposed sub-licensee.

(4) Before refusing to renew any such license, except on the ground of
failure to pass a written examination required pursuant to subsection
(e) hereof, the superintendent shall notify the applicant of his
intention so to do and shall give such applicant a hearing.

(5) (A) The superintendent may in issuing a renewal license dispense
with the requirement of a verified application by any individual
licensee or sub-licensee who, by reason of being engaged in any military
service for the United States, is unable to make personal application
for such renewal license, upon the filing of an application on behalf of
such individual, in such form as the superintendent shall prescribe, by
some person or persons who in his judgment have knowledge of the facts
and who make affidavit showing such military service and the inability
of such insurance broker to make personal application.

(B) An individual licensee or sub-licensee who is unable to comply
with license renewal procedures due to other extenuating circumstances,
such as a long-term medical disability, may request a waiver of such
procedures, in such form as the superintendent shall prescribe. The
licensee or sub-licensee may also request a waiver of any examination
requirement or any other fine or sanction imposed for failure to comply
with renewal procedures.

(h) Any corporation, association or firm licensed as an insurance
broker under this section may at any time make an application to the
superintendent for the issuance of a supplemental license authorizing
additional officers or directors of such corporation, or additional
members of such firm or association, as the case may be, to act as
sub-licensees, and, if the requirements of this section are fully
complied with as to each of such proposed sub-licensees, the
superintendent may issue to such licensee a supplemental license naming
such additional person or persons as sub-licensees.

(i) If an application for a license under this section be rejected, or
if such a license be suspended or revoked by the superintendent, he
shall forthwith give notice thereof to the applicant, or to the
licensee.

(j) The superintendent may issue a replacement for a currently in
force license which has been lost or destroyed. Before such replacement
license shall be issued, there shall be on file in the office of the
superintendent a written application for such replacement license,
affirming under penalty of perjury that the original license has been
lost or destroyed, together with a fee of fifteen dollars.