New York State Seal
STATE OF NEW YORK
INSURANCE DEPARTMENT
25 BEAVER STREET
NEW YORK, NEW YORK 10004

The Office of General Counsel issued the following informal opinion on October 22, 2001, representing the position of the New York State Insurance Department.

RE:  Appointment of Insurance Agents Electronically and Licensing of Life Insurance Brokers

Questions Presented:

1) How can insurance agents be appointed/sponsored by insurers electronically?

2) Do life insurance brokers have to be appointed by life insurers?

Conclusions:

1) Electronic appointment of insurance agents by insurers directly with the Insurance Department is not available at this time. However, insurers that subscribe to the National Association of Insurance Commissioners' ("NAIC") Producer Information Network ("PIN") can submit appointments of insurance agents to the Insurance Department electronically using the NAIC's PIN.

2) Life insurance brokers do not have to be appointed by the insurers issuing the coverage that they sell.

Facts:

No specific facts were provided.

Analysis:

Information concerning the NAIC's PIN and NAIC services can be obtained by looking at their web site, which is www.naic.org.

Life insurance brokers are licensed pursuant to N.Y. Ins. Law § 2104(b)(1)(A) (McKinney Interim Update Pamphlet A June, 2001). Life insurance brokers do not have to be appointed by the insurers issuing the coverage that they sell because, like other insurance brokers licensed pursuant to N.Y. Ins. Law § 2104 (McKinney Interim Update Pamphlet A June, 2001), they represent the insureds rather than the insurers.

The Insurance Department's website, www.ins.state.ny.us, within the area for Producer "Hot Topics", contained in the component for Agents and Brokers, provides information concerning N.Y. Ins. Law § 2104(b)(1)(A) (McKinney Interim Update Pamphlet A June, 2001) and licensing of life insurance brokers. Persons interested in becoming licensed as life insurance brokers can download a copy of the application and instructions from the website or may contact our Licensing Services Bureau at: New York State Insurance Department, Agency Building 1, Empire State Plaza, Albany, New York 12257.

For further information you may contact Senior Attorney Robert Freedman at the New York City Office.