S. 3551(Breslin)/A. 7129(Morelle)

Licensing

Summary: The bill would modernize the Insurance Department's licensing process by:

1. creating three new lines of authority;
2. requiring entities seeking to provide insurance agent and broker licensing courses to file for approval with the Department;
3. requiring independent adjusters to complete pre-licensing and continuing education courses;
4. granting the Superintendent the authority to require an applicant for an Article 21 license to submit his or her fingerprints; and
5. permitting the licensing of non-resident adjusters on a reciprocal basis.

Specifics include:

• Insurance Law § 2103(a) is amended to permit the Superintendent to issue an insurance agent’s license for credit insurance as provided under Insurance Law § 2101 (r) (6) (A).
• Insurance Law § 21 03(b) is amended to permit the Superintendent to issue an insurance agent's license for credit insurance as provided under Insurance Law § 2101 (r) (6) (B), crop insurance, and surety insurance.
• Insurance Law § 2103(f) is amended to: (1) require 20 hours of pre-licensing education per line of authority that an individual seeks to qualify for under Insurance Law § 21 03 (a); (2) require 20 hours of pre-licensing education per line of authority that an individual seeks to qualify for pursuant to Insurance Law § 21 03(b); and (3) require entities seeking to provide insurance agent licensing courses to file for approval with the Superintendent.
• Insurance Law § 2103(g) (1) is amended to not require a written exam 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, life, accident and health, disability, and personal effects, when limited to a specific trip and sold in connection with transportation provided by the common carrier.
• Insurance Law §§ 2103(g) (9) and (10) are amended 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 sub-licensee from all or any part of the insurance agent pre-licensing, written exam or prerequisite prelicensing course as set forth in either Insurance Law §§ 2103(f) (2) (A) or (B).
• Insurance Law § 21 04 (c) (1) (A) is amended to require an individual to complete not less than twenty hours of pre-licensing education per line of authority that an individual seeks qualify for under Insurance Law § 2104(b).
• Insurance Law § 2104(c) is amended to require entities seeking to provide insurance broker licensing courses to file for approval with the Superintendent.
• Insurance Law § 2104 (e) (I) (B) is amended 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 sub-licensee from all or part of the insurance broker pre-licensing, written exam or prerequisite course as set forth in Insurance Law § 21 04 ( c) (1 ) (A).
• Insurance Law § 2108(f) (1) is amended to provide that an individual shall not be deemed qualified to take the independent adjuster exam without demonstrating that: (I) the individual possesses a minimum of one year' s experience in the insurance business, with involvement in sales, underwriting, claims, or other experience considered sufficient by the Superintendent; or (2) the individual completed forty hours of formal training in a course, program of instruction, or seminars approved by the Superintendent.
• A new Insurance Law § 2113 is added to grant the Superintendent the authority to require an individual who is applying for a license pursuant to Article 21 of the Insurance Law, to submit his or her fingerprints.
• Insurance Law § 2132(c) (1) is amended to require that any person with an Article 21 license who is not exempt under Insurance Law § 2132(b), must participate in 24 credit hours of continuing education.
• Insurance Law § 2136(d) is amended to permit the licensing of non-resident adjusters on a reciprocal basis.

Effective Date: 180 days after enactment.