Relates to license terms for new applicants for certain insurance licenses.
TITLE OF BILL: An act to amend the insurance law, in relation to license terms of new applicants
PURPOSE: To allow the Superintendent of Insurance to issue licenses to new applicants for a term longer than twenty-four months.
SUMMARY OF PROVISIONS: Section 1 allows the Superintendent of Insurance to issue licenses to new applicants for a term longer than twenty-four months, but not to exceed a term of thirty months. The fee for such additional months would be the licensing fee prorated for the additional months of such license term. Section 2 clarifies that continuing education requirements are required after the full biennial licensing period as is currently the practice by the New York State Department of Insurance. Section 3 provides that the bill takes effect immediately.
JUSTIFICATION: Licenses for insurance agents expire on an insurance agent's birth date every other year. The licenses are issued for a term of twenty-four months. When an agent makes an initial application, however, the term is much shorter if the agent's date of birth is shortly following the initial application. Currently, there is no provision in the law that allows for an extended period of time for a license to be issued to an initial applicant. The result is applicants must apply and obtain a new license immediately following the issuance of the initial license. Allowing the Superintendent to extend the initial license period will streamline the process for both applicants and New York State Department of Insurance.
LEGISLATIVE HISTORY: New bill.
FISCAL IMPLICATIONS: None.
EFFECTIVE DATE: Immediately.
STATE OF NEW YORK ________________________________________________________________________ 2704 2011-2012 Regular Sessions IN SENATE January 28, 2011 ___________Introduced by Sen. SEWARD -- 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 license terms of new applicants THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. Paragraph 3 of subsection j of section 2103 of the insur- ance law, as added by chapter 769 of the laws of 1984, is amended to read as follows: (3)
[Such licenses may be issued for all of such two year terms, or, upon application made during any such term, for the balance thereof]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. S 2. Paragraph 1 of subsection c of section 2132 of the insurance law, as added by chapter 656 of the laws of 1992, is amended to read as follows: (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, SUBSEQUENT TO THE INITIAL LICENSING PERIOD, satisfactorily complete courses or programs of instruction or attend seminars as may be approved by the superintendent equivalent to fifteen credit hours of instruction. S 3. This act shall take effect immediately.EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD08793-01-1