S T A T E O F N E W Y O R K
________________________________________________________________________
2668
2011-2012 Regular Sessions
I N S E N A T E
January 28, 2011
___________
Introduced by Sen. KRUGER -- 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 the licensing of
agents of authorized title insurance companies
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Paragraph 4 of subsection (a) of section 2101 of the insur-
ance law, as amended by chapter 687 of the laws of 2003, is amended to
read as follows:
(4) any [agent or other representative of any] EMPLOYEE OF AN AUTHOR-
IZED title insurance company OR LICENSED TITLE INSURANCE AGENT WHO
DEVOTES SUBSTANTIALLY ALL OF HIS SERVICE TO THE SOLICITATION OF TITLE
INSURANCE BUSINESS FROM THE INSURING PUBLIC AND WHO RECEIVES FOR THE
SOLICITATION OF SUCH TITLE INSURANCE COMPENSATION IN THE FORM OF SALARY
OR COMMISSION;
S 2. Section 2101 of the insurance law is amended by adding a new
subsection (w) to read as follows:
(W) IN THIS ARTICLE, AN "AGENT OF AN AUTHORIZED TITLE INSURANCE COMPA-
NY" MEANS ANY PERSON, FIRM OR CORPORATION AUTHORIZED IN WRITING BY AN
AUTHORIZED TITLE INSURANCE COMPANY TO PERFORM AND WHO ACTUALLY PERFORMS
THE FOLLOWING SERVICES:
(1) ISSUE COMMITMENTS TO INSURE OR REPORTS OF TITLE BASED UPON A
SEARCH OR EXAMINATION OF TITLE.
(2) DETERMINE INSURABILITY IN ACCORDANCE WITH UNDERWRITING RULES AND
STANDARDS PRESCRIBED BY THE TITLE INSURANCE COMPANY; AND, IN ADDITION,
PERFORMS, IN SUBSTANTIAL PART, THE FOLLOWING:
(A) COLLECTS PREMIUMS;
(B) CLOSES OR SETTLES TITLE; AND
(C) RECORDS CLOSING DOCUMENTS.
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD07279-01-1
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S 3. Paragraphs 10 and 11 of subsection (g) of section 2103 of the
insurance law, paragraph 10 as amended and paragraph 11 as added by
chapter 687 of the laws of 2003, are amended to read as follows:
(10) in the discretion of the superintendent, as to all or any part of
the written examination or the prerequisite minimum ninety hour course
specified in subparagraph (B) of paragraph two of subsection (f) of this
section, of any individual seeking to be named a licensee or sublicen-
see, upon whom has been conferred the Chartered Property Casualty Under-
writer (C.P.C.U.) designation by the American Institute for Property and
Liability Underwriters; [or]
(11) of any individual who applies for an insurance agent license in
this state who 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 previ-
ous 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[.];
OR
S 4. Subsection (g) of section 2103 of the insurance law is amended by
adding two new paragraphs 12 and 13 to read as follows:
(12) OF ANY APPLICANT SEEKING TO OBTAIN A LICENSE AS AN AGENT OF AN
AUTHORIZED TITLE INSURANCE COMPANY, WHEN SUCH APPLICANT IS A LICENSED
ATTORNEY AT LAW OF THIS STATE; OR
(13) IN THE DISCRETION OF THE SUPERINTENDENT, AS TO ALL OR ANY PART OF
THE WRITTEN EXAMINATION OR THE PREREQUISITE MINIMUM NINETY-HOUR COURSE
SPECIFIED IN SUBPARAGRAPH (B) OF PARAGRAPH TWO OF SUBSECTION (F) OF THIS
SECTION, OF ANY PERSON, FIRM OR CORPORATION SEEKING TO BE LICENSED AS AN
AGENT OF AN AUTHORIZED TITLE INSURANCE COMPANY IF THE SUPERINTENDENT IS
SATISFIED THAT THE APPLICANT POSSESSES THE REQUISITE KNOWLEDGE AND EXPE-
RIENCE WITH RESPECT TO THE SUBJECT MATTER OF THE PART OF THE EXAMINATION
BEING WAIVED.
S 5. Subsection (j) of section 2103 of the insurance law is amended by
adding a new paragraph 14 to read as follows:
(14) NOTWITHSTANDING ANY OTHER PROVISIONS OF THIS SECTION, THERE SHALL
BE PAID TO THE SUPERINTENDENT FOR A TITLE INSURANCE AGENT'S LICENSE AN
INITIAL FEE OF TWO HUNDRED DOLLARS AND A RENEWAL FEE OF TWO HUNDRED
DOLLARS. THE TERM FOR SUCH LICENSE SHALL BE A MAXIMUM OF TWENTY-FOUR
MONTHS. ALL SUCH LICENSES SHALL EXPIRE ON JUNE THIRTIETH OF EACH EVEN
NUMBERED YEAR, AND THE SUPERINTENDENT SHALL HAVE AUTHORITY TO PRORATE
THE LICENSING FEE.
S 6. Subsection (n) of section 2103 of the insurance law, as amended
by chapter 687 of the laws of 2003, is amended to read as follows:
(n) Any insurance agent licensed pursuant to subsection (b) of this
section, EXCEPT AN AGENT OF AN AUTHORIZED TITLE INSURANCE COMPANY, is
S. 2668 3
hereby authorized while so licensed, to act in the sale, solicitation or
negotiation for an insurance contract providing solely for disability
benefits written to meet minimum requirements of article nine of the
workers' compensation law.
S 7. Section 2103 of the insurance law is amended by adding a new
subsection (p) to read as follows:
(P) NOTWITHSTANDING ANY OTHER PROVISION OF THIS SECTION, THE SUPER-
INTENDENT SHALL ISSUE A LICENSE TO ANY PERSON, FIRM OR CORPORATION,
AUTHORIZING SUCH LICENSEE TO ACT AS AN AGENT OF AN AUTHORIZED TITLE
INSURANCE COMPANY, WHEN SUCH PERSON, FIRM OR CORPORATION:
(1) FILES IN THE OFFICE OF THE SUPERINTENDENT, ON OR BEFORE JUNE
FIRST, TWO THOUSAND ELEVEN, OR WITHIN NINETY DAYS AFTER THE SUPERINTEN-
DENT HAS PROMULGATED APPLICATION FORMS, WHICHEVER DATE IS LATER AN
APPLICATION FOR SUCH LICENSE, IN SUCH FORM AND CONTAINING SUCH INFORMA-
TION AS THE SUPERINTENDENT PRESCRIBES;
(2) PAYS TO THE SUPERINTENDENT AN APPLICATION FEE OF TWO HUNDRED
DOLLARS;
(3) DEMONSTRATES TO THE SATISFACTION OF THE SUPERINTENDENT THAT SUCH
APPLICANT HAS REGULARLY AND CONTINUOUSLY ACTED AS AN AGENT OF AN AUTHOR-
IZED TITLE INSURANCE COMPANY FOR A PERIOD OF AT LEAST THREE YEARS IMME-
DIATELY PRECEDING THE FILING OF SUCH APPLICATION AND IS COMPETENT AND
TRUSTWORTHY TO ACT AS A TITLE INSURANCE AGENT; AND
(4) IS EIGHTEEN YEARS OF AGE OR OVER AT THE TIME OF THE ISSUANCE OF
SUCH LICENSE. SUCH LICENSE SHALL BE FOR A TERM EXPIRING ON JUNE THIRTI-
ETH, TWO THOUSAND THIRTEEN, AND RENEWALS THEREOF SHALL BE ISSUED PURSU-
ANT TO PARAGRAPH TWO OF SUBSECTION (J) OF THIS SECTION.
S 8. Paragraph 1 of subsection (a) of section 2115 of the insurance
law, as amended by chapter 418 of the laws of 2000, is amended to read
as follows:
(1) No insurer doing business in this state, and no agent or other
representative thereof, except as provided in subsection (b) [hereof] OF
THIS SECTION, shall pay any commission or other compensation to any
person, firm, association or corporation for acting as insurance agent
in this state, except to a licensed insurance agent of such insurer or
to a person described in paragraph two [or four] of subsection (a) of
section two thousand one hundred one of this article or except as
provided in subsection (c) of this section. For the purposes of this
section, "acting as insurance agent" shall not include the referral of a
person to a licensed insurance agent or broker that does not include a
discussion of specific insurance policy terms and conditions and where
the compensation for referral is not based upon the purchase of insur-
ance by such person.
S 9. The section heading and subsections (a) and (b) of section 2115
of the insurance law, paragraph 1 of subsection (a) as amended by chap-
ter 805 of the laws of 1984 and subsection (b) as amended by chapter 540
of the laws of 1996, are amended to read as follows:
Property/casualty insurance agents; AGENTS OF TITLE INSURANCE COMPA-
NIES; commissions. (a) (1) No insurer doing business in this state, and
no agent or other representative thereof, except as provided in
subsection (b) [hereof] OF THIS SECTION, shall pay any commission or
other compensation to any person, firm, association or corporation for
acting as insurance agent in this state, except to a licensed insurance
agent of such insurer or to a person described in paragraph two [or
four] of subsection (a) of section two thousand one hundred one of this
article or except as provided in subsection (c) of this section.
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(2) The term "licensed insurance agent" as used in this subsection
includes any agent authorized to act as such by a license issued and in
force pursuant to the provisions of subsection (b) of section two thou-
sand one hundred three of this article or authorized to act as such in
connection with contracts for disability benefits pursuant to the
provisions of subsection (n) of such section.
(b) This section shall not apply to any life insurance company,
fraternal benefit society, accident and health insurance company, health
maintenance organization[, title insurance company] nor to any agent or
representative of any such insurer, society or health maintenance organ-
ization, acting as such.
S 10. Section 2120 of the insurance law is amended by adding a new
subsection (e) to read as follows:
(E) AGENTS OF TITLE INSURANCE COMPANIES SHALL TREAT ALL FUNDS TAKEN
FOR THE ACCOUNT OF OTHERS, INCLUDING PREMIUMS COLLECTED BY THEM, IN
CONNECTION WITH ANY TITLE INSURANCE TRANSACTION AS FIDUCIARY FUNDS.
S 11. Within 120 days immediately after the effective date of this
act, the superintendent of insurance shall promulgate application forms
for persons, firms and corporations seeking to obtain a license as an
agent of an authorized title insurance company.
S 12. Each person, firm or corporation who has filed an application
for a license as an agent of an authorized title insurance company on or
before 90 days immediately after the superintendent of insurance has
promulgated application forms for such a license pursuant to section
eleven of this act, may act as such an agent without a license issued
pursuant to section 2103 of the insurance law until the superintendent
of insurance has finally determined the application for such license
filed by such person, firm or corporation.
S 13. This act shall take effect immediately, provided, however, that
sections 2103 and 2115 of the insurance law, as amended by sections
three, four, eight and nine of this act, shall not be applicable to
agents of authorized title insurance companies until the one hundred
eightieth day after this act shall have become a law or the ninetieth
day after the superintendent of insurance has promulgated application
forms pursuant to section eleven of this act, whichever date is later,
and provided further, however, that the amendments made to paragraph 1
of subsection (a) of section 2115 of the insurance law by section eight
of this act shall be deemed repealed on the same date as section 5 of
chapter 418 of the laws of 2000, as amended, when upon such date the
provisions of section nine of this act shall take effect.