Bill Text: NY A07129 | 2009-2010 | General Assembly | Amended
Bill Title: Relates to licensing and authorizing new lines of insurance; requires independent adjusters to complete pre-licensing and continuing education courses.
Spectrum: Moderate Partisan Bill (Democrat 9-1)
Status: (Introduced - Dead) 2010-06-30 - print number 7129a [A07129 Detail]
Download: New_York-2009-A07129-Amended.html
S T A T E O F N E W Y O R K
________________________________________________________________________
7129--A
2009-2010 Regular Sessions
I N A S S E M B L Y
March 23, 2009
___________
Introduced by M. of A. MORELLE, SPANO, REILLY, FIELDS, CHRISTENSEN,
STIRPE -- Multi-Sponsored by -- M. of A. BING, DESTITO, GALEF, MAGEE
-- read once and referred to the Committee on Insurance -- recommitted
to the Committee on Insurance in accordance with Assembly Rule 3, sec.
2 -- reported and referred to the Committee on Codes -- committee
discharged, bill amended, ordered reprinted as amended and recommitted
to said committee
AN ACT to amend the insurance law, in relation to modernizing the
licensing process by creating three new lines of authority, requiring
entities seeking to provide insurance agent and broker licensing
courses to file for approval with the superintendent of insurance,
requiring independent adjusters to complete pre-licensing and continu-
ing education courses, granting the superintendent of insurance the
authority to require an applicant for an article 21 license to submit
his or her fingerprints, and permitting the licensing of non-resident
adjusters on a reciprocal basis; and to repeal certain provisions of
such law relating to licensing of adjusters
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
1 Section 1. Paragraph 2 of subsection (a) of section 2101 of the insur-
2 ance law, as amended by chapter 687 of the laws of 2003, is amended to
3 read as follows:
4 (2) [employees] AN EMPLOYEE of [insurers] AN INSURER, fraternal bene-
5 fit [societies] SOCIETY, or health maintenance [organizations] ORGANIZA-
6 TION or [organizations] AN ORGANIZATION employed by [insurers] AN INSUR-
7 ER, fraternal benefit [societies] SOCIETY, or health maintenance
8 [organizations] ORGANIZATION, who [are] IS engaging in the inspection,
9 rating or classification of risks, or in the supervision of the training
10 of licensed insurance producers and who [are] IS not individually
11 engaged in the sale, solicitation or negotiation of insurance;
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD09021-06-0
A. 7129--A 2
1 S 2. Subsections (l), (m), (n) and (o) of section 2101 of the insur-
2 ance law, as added by chapter 687 of the laws of 2003, are amended to
3 read as follows:
4 (l) In this article, "home state" means [the District of Columbia or]
5 any state or territory of the United States in which an insurance
6 producer maintains his, her, or its principal place of residence or
7 principal place of business, and is licensed to act as an insurance
8 producer.
9 (m) In this article, "negotiate" or "negotiation" means the act of
10 conferring directly with, or offering advice directly to, a purchaser or
11 prospective purchaser of a particular contract of insurance concerning
12 any of the substantive benefits, terms, or conditions of the contract,
13 provided that the person engaged in that act either sells insurance or
14 obtains insurance from [licensed insurers] AN INSURER, fraternal benefit
15 [societies] SOCIETY, or health maintenance [organizations] ORGANIZATION
16 for purchasers.
17 (n) In this article, "sell" or "sale" means to exchange a contract of
18 insurance by any means, for money or its equivalent, on behalf of [a
19 licensed] AN insurer, fraternal benefit society, or health maintenance
20 organization.
21 (o) In this article, "solicit" or "solicitation" means attempting to
22 sell insurance or asking or urging a person to apply for a particular
23 kind of insurance from a particular [licensed] insurer, fraternal bene-
24 fit society, or health maintenance organization.
25 S 3. Paragraphs 6 and 7 of subsection (r) of section 2101 of the
26 insurance law, are renumbered paragraphs 9 and 10, and three new para-
27 graphs 6, 7, and 8 are added to read as follows:
28 (6) CREDIT: INSURANCE COVERAGE PROVIDED UNDER POLICIES OF: (A) CREDIT
29 LIFE AND CREDIT ACCIDENT AND HEALTH; AND
30 (B) CREDIT UNEMPLOYMENT, INVOLUNTARY UNEMPLOYMENT, MOTOR VEHICLE CRED-
31 ITOR GAP, NON-MOTOR VEHICLE CREDITOR GAP, OR ANY OTHER TYPE OF INSURANCE
32 THAT THE SUPERINTENDENT DETERMINES IS OFFERED IN CONNECTION WITH AN
33 EXTENSION OF CREDIT IS LIMITED TO PARTIALLY OR WHOLLY EXTINGUISHING THE
34 CREDIT OBLIGATION, EXCEPT AS PROVIDED UNDER SUBPARAGRAPH (A) OF THIS
35 PARAGRAPH;
36 (7) CROP: INSURANCE COVERAGE PROVIDING PROTECTION AGAINST DAMAGE TO
37 CROPS FROM UNFAVORABLE WEATHER CONDITIONS, FIRE OR LIGHTNING, FLOOD,
38 HAIL, INSECT INFESTATION, DISEASE, OR OTHER YIELD-REDUCING CONDITIONS OR
39 PERILS, INCLUDING MULTI-PERIL CROP INSURANCE;
40 (8) SURETY: A BOND OR CONTRACT AS SPECIFIED IN SUBPARAGRAPHS (C)
41 THROUGH (J) OF PARAGRAPH SIXTEEN OF SUBSECTION (A) OF SECTION ONE THOU-
42 SAND ONE HUNDRED THIRTEEN OF THIS CHAPTER, BUT SHALL NOT INCLUDE A BAIL
43 BOND;
44 S 4. Subsections (a) and (b) of section 2103 of the insurance law, as
45 amended by chapter 687 of the laws of 2003, are amended to read as
46 follows:
47 (a) The superintendent may issue a license to any person, firm or
48 corporation who or [which] THAT has complied with the requirements of
49 this chapter, authorizing [such] THE licensee to act as an insurance
50 agent with respect to the lines of authority for life [insurance], vari-
51 able life and variable annuity products, [or] accident and health
52 [insurance and] OR sickness, CREDIT, AS PROVIDED UNDER SUBPARAGRAPH (A)
53 OF PARAGRAPH SIX OF SUBSECTION (R) OF SECTION TWO THOUSAND ONE HUNDRED
54 ONE OF THIS ARTICLE, or any other line of authority deemed to be similar
55 by the superintendent, including, for this purpose, health maintenance
56 organization contracts, legal services insurance, or with respect to any
A. 7129--A 3
1 combination of the above, as specified in [such] THE license, on behalf
2 of any insurer, fraternal benefit society, or health maintenance organ-
3 ization[, which] THAT is authorized to do such kind or kinds of insur-
4 ance or health maintenance organization business in this state.
5 (b) The superintendent may issue a license to any person, firm, asso-
6 ciation or corporation who or [which] THAT has complied with the
7 requirements of this chapter, authorizing the licensee to act as agent
8 of any authorized insurer, other than an insurer specified in subsection
9 (b) of section two thousand one hundred fifteen of this article, with
10 respect to the lines of authority for accident and health or sickness,
11 property, casualty, personal lines, CREDIT, AS PROVIDED UNDER SUBPARA-
12 GRAPH (B) OF PARAGRAPH SIX OF SUBSECTION (R) OF SECTION TWO THOUSAND ONE
13 HUNDRED ONE OF THIS ARTICLE, CROP, SURETY, or any other line of authori-
14 ty granted other than life, and variable life and variable annuity
15 products, which [such] THE insurer is authorized to do in this state.
16 S 5. Subparagraphs (A) and (B) of paragraph 2 of subsection (f) of
17 section 2103 of the insurance law, as amended by chapter 687 of the
18 laws of 2003, are amended, and a new paragraph 4 is added to read as
19 follows:
20 (A) For individuals seeking to qualify to obtain a license under
21 subsection (a) of this section, [one examination adapted to test the
22 qualifications for a life insurance agent's license, another adapted to
23 test the qualifications for an accident and health insurance agent's
24 license and another adapted to test the qualifications for a legal
25 services insurance license] EXAMINATIONS ADAPTED TO TEST THE QUALIFICA-
26 TIONS FOR THE LINES OF AUTHORITY SUBJECT TO SUCH SUBSECTION. Each [such]
27 individual shall be required to pass the type or types of examination
28 prescribed by the superintendent for the line or lines of authority, as
29 specified in subsection (a) of this section, for which the license is
30 sought. [No] AN individual shall NOT be deemed qualified to take the
31 examination or examinations unless [he shall have] THE INDIVIDUAL HAS
32 successfully completed a course or courses, approved as to method and
33 content by the superintendent, covering the principal branches and
34 contracts of life insurance, annuity contracts, disability insurance,
35 accident and health insurance, and related insurance, and requiring not
36 less than [forty] TWENTY hours of classroom work or the equivalent in
37 correspondence work or similar instruction FOR EACH LINE OF AUTHORITY AN
38 INDIVIDUAL SEEKS TO QUALIFY FOR UNDER SUBSECTION (A) OF THIS SECTION,
39 provided, however, that, at the discretion of the superintendent, insur-
40 ance subject material may be eliminated from course content, with a
41 corresponding reduction in course hours, if an insurer is not authorized
42 to transact such kind or kinds of insurance in this state. [Such] THE
43 course or courses either shall have been given by a degree conferring
44 college or university which [has] HAD, when [such] THE course [is] WAS
45 taken by [such] THE individual, a curriculum or curricula registered
46 with the state education department, whether [such] THE course be given
47 as part of any such curricula or separately, or by any other
48 institution, or life or accident and health insurer [which] THAT main-
49 tains equivalent standards of instruction, and [which shall have] THAT
50 HAS been approved for such purpose by the superintendent.
51 (B) For individuals seeking to qualify to obtain a license under
52 subsection (b) of this section, [not more than six types of examina-
53 tions, each adapted to test the qualifications of an individual with
54 respect to the kinds of insurance business specified in such classifica-
55 tion] EXAMINATIONS ADAPTED TO TEST THE QUALIFICATIONS FOR THE LINES OF
56 AUTHORITY SUBJECT TO SUCH SUBSECTION. Every [such] individual shall be
A. 7129--A 4
1 required to pass the type or types of examination prescribed by the
2 superintendent for the line or lines of authority for which the license
3 is sought. [No] AN individual shall NOT be deemed qualified to take the
4 examination unless [he] THE INDIVIDUAL shall have successfully completed
5 a course or courses, approved as to method and content by the super-
6 intendent, covering the principal branches of the insurance business and
7 requiring not less than [ninety] TWENTY hours of classroom work, [in] OR
8 THE EQUIVALENT IN CORRESPONDENCE WORK OR SIMILAR INSTRUCTION OFFERED BY,
9 institutions of learning meeting the standards prescribed by paragraph
10 one of subsection (a) of section two thousand one hundred four of this
11 article[; provided, however, with respect to a license issued pursuant
12 to subsection (b) of this section for a personal line of authority,
13 there shall be required not less than forty hours of such classroom
14 work] FOR EACH LINE OF AUTHORITY AN INDIVIDUAL SEEKS TO QUALIFY FOR
15 UNDER SUBSECTION (B) OF THIS SECTION.
16 (4)(A) ANY ENTITY ELIGIBLE TO PROVIDE COURSES, PROGRAMS OF INSTRUC-
17 TION, OR SEMINARS IN ACCORDANCE WITH THIS SECTION, SHALL FILE FOR
18 APPROVAL BY THE SUPERINTENDENT ON A BIENNIAL BASIS, TO CONFORM WITH ITS
19 AREA OF INSTRUCTION, A PROVIDER ORGANIZATION APPLICATION AND A COURSE
20 SUBMISSION APPLICATION FOR EACH COURSE, PROGRAM AND SEMINAR.
21 (B) THE PROVIDER ORGANIZATION APPLICATION SHALL INCLUDE THE NAMES OF
22 ALL INSTRUCTORS TO BE USED DURING THE CONTRACT PERIOD, AND INSTRUCTORS
23 MAY BE ADDED DURING THE PERIOD BY NOTIFYING THE SUPERINTENDENT AND
24 PAYING THE APPROPRIATE FILING FEE.
25 (C) THE COMPLETED APPLICATIONS SHALL BE RETURNED IN A TIMELY MANNER,
26 AS SPECIFIED BY THE SUPERINTENDENT, WITH A NON-REFUNDABLE FILING FEE OF
27 TWO HUNDRED DOLLARS PER ORGANIZATION, FIFTY DOLLARS PER COURSE, PROGRAM
28 AND SEMINAR, AND FIFTY DOLLARS PER INSTRUCTOR.
29 (D) APPROVAL OF THE APPLICATION SHALL BE AT THE DISCRETION OF THE
30 SUPERINTENDENT.
31 S 6. Paragraphs 1, 9, and 10 of subsection (g) of section 2103 of the
32 insurance law, paragraphs 9 and 10 as amended by chapter 687 of the laws
33 of 2003, are amended to read as follows:
34 (1) as a prerequisite to the issuance of a [baggage or accident and
35 health insurance] TRAVEL INSURANCE agent's license to any ticket selling
36 agent or representative of a railroad company, steamship company, carri-
37 er by air, [or] public bus carrier, OR OTHER COMMON CARRIER, who shall
38 act [thereunder] as AN insurance agent only in reference to [the issu-
39 ance of] INSURANCE COVERAGE FOR TRIP CANCELLATION, TRIP INTERRUPTION,
40 baggage [or], LIFE, accident [insurance tickets primarily for the
41 purpose of covering risk of travel] AND HEALTH, DISABILITY AND PERSONAL
42 EFFECTS, WHEN LIMITED TO A SPECIFIC TRIP AND SOLD IN CONNECTION WITH
43 TRANSPORTATION PROVIDED BY THE COMMON CARRIER;
44 (9) in the discretion of the superintendent, as to all or any part of
45 the written examination or the prerequisite [minimum forty hour] PRE-LI-
46 CENSING course specified in subparagraph (A) of paragraph two of
47 subsection (f) of this section, of any individual seeking to be named a
48 licensee or sub-licensee, upon whom has been conferred the Chartered
49 Life Underwriter (C.L.U.) or Chartered Life Underwriter Associate desig-
50 nation by [The] THE American College OR ANY OTHER DESIGNATION THAT THE
51 SUPERINTENDENT DETERMINES IS ACCEPTABLE PURSUANT TO A REGULATION;
52 (10) in the discretion of the superintendent, as to all or any part of
53 the written examination or the prerequisite [minimum ninety hour]
54 PRE-LICENSING course specified in subparagraph (B) of paragraph two of
55 subsection (f) of this section, of any individual seeking to be named a
56 licensee or sublicensee, upon whom has been conferred the Chartered
A. 7129--A 5
1 Property Casualty Underwriter (C.P.C.U.) designation by the American
2 Institute for Property and Liability Underwriters, OR ANY OTHER DESIG-
3 NATION THAT THE SUPERINTENDENT DETERMINES IS ACCEPTABLE PURSUANT TO A
4 REGULATION; or
5 S 7. Subparagraphs (A), (B), and (C) of paragraph 1 of subsection (c)
6 of section 2104 of the insurance law, as amended by chapter 505 of the
7 laws of 2000, are amended, paragraph 2 of subsection (c) is renumbered
8 paragraph 3, and a new paragraph 2 is added to read as follows:
9 (A) [He] THE INDIVIDUAL shall have successfully completed a course or
10 courses, approved as to method and content by the superintendent,
11 [covering the principal branches of the insurance business and requir-
12 ing, in the case of a license under subparagraph (B) of paragraph one of
13 subsection (b) of this section,] not less than [ninety] TWENTY hours[,
14 and in the case of a license under subparagraph (A) of paragraph one of
15 subsection (b) of this section, not less than forty hours] of classroom
16 work or the equivalent thereof in correspondence work FOR EACH LINE OF
17 AUTHORITY AN INDIVIDUAL SEEKS TO QUALIFY FOR UNDER SUBSECTION (B) OF
18 THIS SECTION. [Such] THE course or courses either were given by a
19 degree conferring college or university which [has] HAD, when [such] THE
20 course [is] WAS taken by [such] THE individual, a curriculum or curric-
21 ula registered with the state education department, whether [such] THE
22 course [be] WAS given as a part of any such curriculum or separately,
23 [or were given by the The College of Insurance,] or by any other insti-
24 tution [which] THAT maintains equivalent standards of instruction,
25 [which] THAT has been continuously in existence for not less than five
26 years prior to the taking of [such] THE course by [such] THE individual,
27 and [which shall have been] THAT WAS approved for such purpose by the
28 superintendent.
29 (B) [He] THE INDIVIDUAL shall have been regularly employed by an
30 insurance company or an insurance agent or an insurance broker, for a
31 period or periods aggregating not less than one year during the three
32 years next preceding the date of application, in the case of a license
33 under subparagraph (B) of paragraph one of subsection (b) of this
34 section, in responsible insurance duties relating to the underwriting or
35 adjusting of losses in any one or more of the following branches of
36 insurance: fire, marine, liability and workers' compensation, and fidel-
37 ity and surety; in the case of a license under subparagraph (A) of para-
38 graph one of subsection (b) of this section in responsible insurance
39 duties relating to the use of life insurance, accident and health insur-
40 ance and annuity contracts in the design and administration of plans for
41 estate conservation and distribution, employee benefits and business
42 continuation; and [he] THE INDIVIDUAL shall submit with his OR HER
43 application a statement subscribed and affirmed as true under the penal-
44 ties of perjury by such employer or employers stating facts [which] THAT
45 show compliance with this requirement.
46 (C) [He] THE INDIVIDUAL shall have been regularly employed by an
47 insurance company or an insurance agent or an insurance broker, for a
48 period or periods aggregating not less than one year, during the three
49 years next preceding the date of entrance into the service of the armed
50 forces of the United States or immediately following [his] THE INDIVID-
51 UAL'S discharge therefrom, in the case of a license under subparagraph
52 (B) of paragraph one of subsection (b) of this section, in responsible
53 insurance duties relating to the underwriting or adjusting of losses in
54 any one or more of the following branches of insurance: fire, marine,
55 liability and workers' compensation, and fidelity and surety; in the
56 case of a license under subparagraph (A) of paragraph one of subsection
A. 7129--A 6
1 (b) of this section in responsible insurance duties relating to the use
2 of life insurance, accident and health insurance and annuity contracts
3 in the design and administration of plans for estate conservation and
4 distribution, employee benefits and business continuation; provided the
5 application for [such] THE license is filed within one year from the
6 date of discharge; and [he] THE INDIVIDUAL shall submit with his OR HER
7 application a statement subscribed and affirmed as true under the penal-
8 ties of perjury by such employer or employers stating facts [which] THAT
9 show compliance with this requirement.
10 (2)(A) ANY ENTITY ELIGIBLE TO PROVIDE COURSES, PROGRAMS OF INSTRUC-
11 TION, OR SEMINARS IN ACCORDANCE WITH THIS SECTION, SHALL FILE FOR
12 APPROVAL BY THE SUPERINTENDENT ON A BIENNIAL BASIS, TO CONFORM WITH ITS
13 AREA OF INSTRUCTION, A PROVIDER ORGANIZATION APPLICATION AND A COURSE
14 SUBMISSION APPLICATION FOR EACH COURSE, PROGRAM AND SEMINAR.
15 (B) THE PROVIDER ORGANIZATION APPLICATION SHALL INCLUDE THE NAMES OF
16 ALL INSTRUCTORS TO BE USED DURING THE CONTRACT PERIOD, AND INSTRUCTORS
17 MAY BE ADDED DURING THE PERIOD BY NOTIFYING THE SUPERINTENDENT AND
18 PAYING THE APPROPRIATE FILING FEE.
19 (C) THE COMPLETED APPLICATIONS SHALL BE RETURNED IN A TIMELY MANNER,
20 AS SPECIFIED BY THE SUPERINTENDENT, WITH A NON-REFUNDABLE FILING FEE OF
21 TWO HUNDRED DOLLARS PER ORGANIZATION, FIFTY DOLLARS PER COURSE, PROGRAM
22 AND SEMINAR, AND FIFTY DOLLARS PER INSTRUCTOR.
23 (D) APPROVAL OF THE APPLICATION SHALL BE AT THE DISCRETION OF THE
24 SUPERINTENDENT.
25 S 8. Subparagraph (B) of paragraph 1 of subsection (e) of section 2104
26 of the insurance law, as amended by chapter 505 of the laws of 2000, is
27 amended to read as follows:
28 (B) An exemption may be granted, at the discretion of the superinten-
29 dent, as to all or any part of the written examination or the prerequi-
30 site course specified in subparagraph (A) of paragraph one of subsection
31 (c) of this section, of any individual seeking to be named a licensee or
32 sub-licensee, upon whom has been conferred, in the case of a license
33 under subparagraph (B) of paragraph one of subsection (b) of this
34 section, the Chartered Property Casualty Underwriter (C.P.C.U.) desig-
35 nation by the American Institute for Property and Liability
36 Underwriters, OR ANY OTHER DESIGNATION THAT THE SUPERINTENDENT DETER-
37 MINES IS ACCEPTABLE PURSUANT TO A REGULATION, or on whom has been
38 conferred, in the case of a license under subparagraph (A) of paragraph
39 one of subsection (b) of this section, the Chartered Life Underwriter
40 (C.L.U.), Chartered Financial Consultant (Ch.F.C.) or the Master of
41 Science in Financial Services (M.S.F.S.) designations by the American
42 College of Financial Service Professionals, OR ANY OTHER DESIGNATION
43 THAT THE SUPERINTENDENT DETERMINES IS ACCEPTABLE PURSUANT TO A REGU-
44 LATION.
45 S 9. Paragraph 2 of subsection (d) of section 2108 of the insurance
46 law is REPEALED.
47 S 10. Paragraph 1 of subsection (f) of section 2108 of the insurance
48 law is amended to read as follows:
49 (1) The superintendent shall, in order to determine the trustworthi-
50 ness and competency to act as an independent adjuster of each individual
51 applicant for such license, and of each proposed sub-licensee, except in
52 the case of a renewal license, require every such individual to take and
53 pass, to the satisfaction of the superintendent, a personal written
54 examination. AN INDIVIDUAL SHALL NOT BE DEEMED QUALIFIED TO TAKE THE
55 EXAMINATION WITHOUT HAVING DEMONSTRATED BY EVIDENCE SATISFACTORY TO THE
56 SUPERINTENDENT THAT: (A) THE INDIVIDUAL POSSESSES A MINIMUM OF
A. 7129--A 7
1 ONE-YEAR'S EXPERIENCE IN THE INSURANCE BUSINESS, WITH INVOLVEMENT IN
2 SALES, UNDERWRITING, CLAIMS, OR OTHER EXPERIENCE CONSIDERED SUFFICIENT
3 BY THE SUPERINTENDENT; OR (B) THE INDIVIDUAL SUCCESSFULLY COMPLETED
4 FORTY HOURS OF FORMAL TRAINING IN A COURSE, PROGRAM OF INSTRUCTION, OR
5 SEMINARS APPROVED BY THE SUPERINTENDENT. The superintendent may
6 prescribe the types of written examinations according to the kind or
7 kinds of insurance claims [which] THAT the applicant is to be licensed
8 to investigate and adjust.
9 S 11. Paragraphs 1 and 2, and clause (i) of subparagraph (A) of para-
10 graph 3 of subsection (r) of section 2108 of the insurance law, as added
11 by chapter 264 of the laws of 1998, are amended to read as follows:
12 (1) The following continuing education requirements shall apply to
13 resident and non-resident persons licensed as [public] adjusters.
14 (2) Resident and non-resident persons licensed as [public] adjusters
15 and any person previously so licensed whose license was not in effect on
16 the effective date of this subsection and who has subsequently been
17 relicensed pursuant to the provisions of this article, shall biennially
18 satisfactorily complete such courses or programs as may be approved by
19 the superintendent, as follows:
20 (A) Any person holding a license as [a public] AN adjuster shall,
21 during each full biennial licensing period, satisfactorily complete
22 courses or programs of instruction or attend seminars as may be approved
23 by the superintendent equivalent to fifteen credit hours of instruction.
24 (B) During the same calendar year biennial licensing period, a licen-
25 see may use accumulated continuing education credits to meet the
26 requirements of similar classes of licenses including those authorized
27 by subsection (b) of section two thousand one hundred three, section two
28 thousand one hundred four, section two thousand one hundred seven of
29 this article with respect to general insurance consultants, and THIS
30 section [two thousand one hundred eight of this article] with respect to
31 [public] adjusters.
32 (C) Excess credit hours accumulated during any biennial licensing
33 period shall not carry forward to the next biennial licensing period for
34 that same class of license.
35 (i) Courses, programs of instruction or seminars, approved as to meth-
36 od and content by the superintendent, covering portions of the principal
37 branches of insurance related to the kinds of insurance covered by [the
38 public] AN adjusting license, and given by a degree conferring college
39 or university whose curriculum is registered with the state education
40 department at the time the person takes the course, whether [such] THE
41 course [be] IS given as part of [such] THE curriculum or separately, or
42 by any other institution, association, trade association, or insurer[,
43 which] THAT maintains equivalent standards of instruction and [which]
44 THAT shall have been approved for such purpose by the superintendent.
45 S 12. The insurance law is amended by adding a new section 2113 to
46 read as follows:
47 S 2113. FINGERPRINT REQUIREMENT. THE SUPERINTENDENT MAY REQUIRE ANY
48 INDIVIDUAL NAMED IN AN APPLICATION FOR A LICENSE UNDER THIS ARTICLE TO
49 SUBMIT A SET OF FINGERPRINTS. SUCH FINGERPRINTS SHALL BE SUBMITTED TO
50 THE DIVISION OF CRIMINAL JUSTICE SERVICES FOR A STATE CRIMINAL HISTORY
51 RECORD CHECK, AS DEFINED IN SUBDIVISION ONE OF SECTION THREE THOUSAND
52 THIRTY-FIVE OF THE EDUCATION LAW, AND MAY BE SUBMITTED TO THE FEDERAL
53 BUREAU OF INVESTIGATION FOR A NATIONAL CRIMINAL HISTORY RECORD CHECK.
54 ALL SUCH CRIMINAL HISTORY RECORDS SENT TO THE SUPERINTENDENT PURSUANT TO
55 THIS SECTION SHALL BE CONFIDENTIAL PURSUANT TO THE APPLICABLE FEDERAL
56 AND STATE LAWS, RULES AND REGULATIONS, AND SHALL NOT BE PUBLISHED OR IN
A. 7129--A 8
1 ANY WAY DISCLOSED TO PERSONS OTHER THAN THE SUPERINTENDENT, UNLESS
2 OTHERWISE AUTHORIZED BY LAW. THE SUPERINTENDENT SHALL PROVIDE SUCH
3 APPLICANT WITH A COPY OF HIS OR HER CRIMINAL HISTORY RECORD, IF ANY,
4 TOGETHER WITH A COPY OF ARTICLE TWENTY-THREE-A OF THE CORRECTION LAW,
5 AND INFORM SUCH APPLICANT OF HIS OR HER RIGHT TO SEEK CORRECTION OF ANY
6 INCORRECT INFORMATION CONTAINED IN SUCH RECORD PURSUANT TO REGULATIONS
7 AND PROCEDURES ESTABLISHED BY THE DIVISION OF CRIMINAL JUSTICE SERVICES.
8 ALL DETERMINATIONS TO GRANT OR DENY CLEARANCE FOR LICENSURE PURSUANT TO
9 THIS SECTION SHALL BE IN ACCORDANCE WITH SUBDIVISION SIXTEEN OF SECTION
10 TWO HUNDRED NINETY-SIX OF THE EXECUTIVE LAW AND ARTICLE TWENTY-THREE-A
11 OF THE CORRECTION LAW. WHEN THE SUPERINTENDENT DENIES AN APPLICATION,
12 WRITTEN NOTICE OF SUCH DETERMINATION SHALL BE GIVEN TO THE PROSPECTIVE
13 APPLICANT WHO SHALL BE AFFORDED NOTICE AND THE RIGHT TO BE HEARD AND
14 OFFER PROOF IN OPPOSITION TO SUCH DETERMINATION.
15 S 13. Paragraph 1 of subsection (c) of section 2132 of the insurance
16 law, as added by chapter 656 of the laws of 1992, is amended to read as
17 follows:
18 (1) Any person holding a license issued pursuant to this article and
19 not exempt under subsection (b) of this section shall, during each full
20 biennial licensing period, satisfactorily complete courses or programs
21 of instruction or attend seminars as may be approved by the superinten-
22 dent equivalent to [fifteen] TWENTY-FOUR credit hours of instruction, OF
23 WHICH THREE CREDIT HOURS SHALL BE IN AN APPROVED ETHICS COURSE. IF
24 LICENSED AS AN INDIVIDUAL AND ACTING AS A SUBLICENSEE OF ANY BUSINESS
25 ENTITY LICENSED UNDER THIS ARTICLE, THEN THE INDIVIDUAL MAY COUNT THE
26 CONTINUING EDUCATION CREDITS ACCUMULATED TO SATISFY THE RENEWAL REQUIRE-
27 MENTS FOR BOTH THE INDIVIDUAL LICENSE AND SUBLICENSE, PROVIDED THE CRED-
28 ITS ARE FOR A SAME LINE OF AUTHORITY.
29 S 14. Subsection (d) of section 2136 of the insurance law, as added by
30 chapter 687 of the laws of 2003, is amended to read as follows:
31 (d) the applicant's home state awards nonresident insurance producer
32 OR ADJUSTER licenses to residents of this state on the same basis as
33 provided in this subsection.
34 S 15. Subsection (d) of section 2108 of the insurance law, paragraph 2
35 as amended by chapter 164 of the laws of 2003, is amended to read as
36 follows:
37 (d) (1) Before any such license or any renewal thereof shall be issued
38 by the superintendent there shall be filed in his office a written
39 application therefor. Such application shall be in the form or forms and
40 supplements and contain information the superintendent prescribes.
41 [(2) Each person or individual signing such application shall, with
42 such application, submit to the superintendent fingerprints of his two
43 hands recorded in such manner as may be specified by the superintendent
44 or his authorized representative. Before approving such application it
45 shall be the duty of the superintendent or his authorized representative
46 to compare such fingerprints with fingerprints filed with the division
47 of criminal justice services. Such fingerprints may also be submitted to
48 the federal bureau of investigation for a national criminal history
49 record check.
50 (3)] (2) No such license shall be issued to any person who has ever
51 been convicted of a felony, or of any crime or offense involving fraudu-
52 lent or dishonest practices; nor shall a licensee under this section
53 employ any person who has ever been convicted of a felony or such a
54 crime or offense.
55 [(4)] (3) This subsection shall not prevent the employment of or the
56 issuance of a license to any person who, subsequent to his conviction,
A. 7129--A 9
1 shall have received executive pardon therefor removing this disability,
2 or who has received a certificate of good conduct granted by the board
3 of parole pursuant to the provisions of the executive law to remove the
4 disability under this section because of such conviction or previous
5 license revocation occasioned thereby.
6 [(5)] (4) Such application shall be approved, as to each person or
7 individual so signing the same, by not less than five reputable citizens
8 of the community in which such applicant resides or transacts business,
9 each of whom shall certify that he has personally known the person or
10 individual for a period of at least five years prior to the filing of
11 such application, that he has read such application and believes each of
12 the statements made therein to be true, that such person is honest, of
13 good character and competent, and not related or connected to the person
14 so certifying by blood or marriage. The certificate of approval shall be
15 subscribed by such reputable citizens and affirmed by them as true under
16 the penalties of perjury.
17 S 16. Paragraph 2 of subsection (d) of section 2137 of the insurance
18 law, as added by chapter 499 of the laws of 2009, is amended to read as
19 follows:
20 (2) [The superintendent may require any individual named in the appli-
21 cation for such license to submit a set of fingerprints, unless such
22 applicant is licensed as an insurance producer with a life line of
23 authority. Such fingerprints shall be submitted to the division of crim-
24 inal justice services for a state criminal history record check, as
25 defined in subdivision one of section three thousand thirty-five of the
26 education law, and may be submitted to the federal bureau of investi-
27 gation for a national criminal history record check. All such criminal
28 history records sent to the superintendent pursuant to this paragraph
29 shall be confidential pursuant to the applicable federal and state laws,
30 rules and regulations, and shall not be published or in any way
31 disclosed to persons other than the superintendent, unless otherwise
32 authorized by law. The superintendent shall provide such applicant with
33 a copy of his or her criminal history record, if any, together with a
34 copy of article twenty-three-A of the correction law, and inform such
35 applicant of his or her right to seek correction of any incorrect infor-
36 mation contained in such record pursuant to regulations and procedures
37 established by the division of criminal justice services. All determi-
38 nations to grant or deny clearance for licensure pursuant to this
39 section shall be in accordance with subdivision sixteen of section two
40 hundred ninety-six of the executive law and article twenty-three-A of
41 the correction law.] When the superintendent denies an application,
42 written notice of such determination shall be given to the prospective
43 applicant who shall be afforded notice and the right to be heard and
44 offer proof in opposition to such determination.
45 S 17. This act shall take effect on the one hundred eightieth day
46 after it shall have become a law.
