S. 5923 2
(D) PREPARES AND ISSUES A TITLE INSURANCE POLICY ON BEHALF OF A TITLE
INSURANCE CORPORATION;
(E) COLLECTS THE TITLE INSURANCE PREMIUM, A PORTION OF WHICH IS REMIT-
TED TO THE TITLE INSURANCE CORPORATION.
(2) NO TITLE INSURANCE CORPORATION DOING BUSINESS IN THIS STATE, AND
NO AGENT OR OTHER REPRESENTATIVE THEREOF, SHALL PAY ANY PERCENTAGE OF
THE TITLE INSURANCE PREMIUM OR FEES COLLECTED TO ANY PERSON, FIRM, ASSO-
CIATION OR CORPORATION FOR PERFORMING ANY OF THE FUNCTIONS OF A TITLE
INSURANCE AGENT, EXCEPT TO A LICENSED TITLE INSURANCE AGENT.
(3) SUCH TERM SHALL NOT INCLUDE ANY REGULAR SALARIED OFFICER OR
EMPLOYEE OF AN AUTHORIZED TITLE INSURANCE CORPORATION OR OF A LICENSED
TITLE INSURANCE AGENT.
S 4. Subparagraph (A) of paragraph 1 of subsection (a) of section 2102
of the insurance law, as amended by section 8 of part I of chapter 61 of
the laws of 2011, is amended to read as follows:
(A) No person, firm, association or corporation shall act as an insur-
ance producer, insurance adjuster OR TITLE INSURANCE AGENT or life
settlement broker in this state without having authority to do so by
virtue of a license issued and in force pursuant to the provisions of
this chapter.
S 5. Subsection (a) of section 2109 of the insurance law, paragraph 3
as amended by chapter 687 of the laws of 2003, is amended to read as
follows:
(a) The superintendent may issue a temporary insurance agent's
LICENSE, TITLE INSURANCE AGENT'S LICENSE or insurance broker's license,
or both, AN INSURANCE AGENT'S AND INSURANCE BROKER'S LICENSE, without
requiring the applicant to pass a written examination or to satisfy the
requirements of subsection (c) of section two thousand one hundred four
of this article except as to age, in the case of a license issued pursu-
ant to paragraph two [hereof] OF THIS SUBSECTION, in the following
cases:
(1) in the case of the death of a person who at the time of his death
was a licensed accident and health insurance agent under subsection (a)
of section two thousand one hundred three of this article, a licensed
insurance agent under subsection (b) of such section, A LICENSED TITLE
INSURANCE AGENT or a licensed insurance broker:
(A) to the executor or administrator of the estate of such deceased
agent or broker;
(B) to a surviving next of kin of such deceased agent or broker, where
no administrator of his estate has been appointed and no executor has
qualified under his duly probated will;
(C) to the surviving member or members of a firm or association, which
at the time of the death of a member was such a licensed insurance
agent, LICENSED TITLE INSURANCE AGENT or licensed insurance broker; or
(D) to an officer or director of a corporation upon the death of the
only officer or director who was qualified as a sub-licensee or to the
executor or administrator of the estate of such deceased officer or
director;
(2) to any person who may be designated by a person licensed pursuant
to this chapter as an insurance agent, TITLE INSURANCE AGENT or an
insurance broker, or both AN INSURANCE AGENT AND INSURANCE BROKER, and
who is absent because of service in any branch of the armed forces of
the United States, including a partnership or corporation which is
licensed pursuant to this chapter as an insurance agent, TITLE INSURANCE
AGENT or as an insurance broker, or both AN INSURANCE AGENT AND INSUR-
ANCE BROKER, in a case where the sub-licensee or all sub-licensees, if
S. 5923 3
more than one, named in the license or licenses issued to such partner-
ship or corporation is or are absent because of service in any branch of
the armed forces of the United States; and
(3) to the next of kin of a person who has become totally disabled and
prevented from pursuing any of the duties of his or her occupation, and
who at the commencement of his or her disability was a licensed accident
and health insurance agent under subsection (a) of section two thousand
one hundred three of this article, a licensed insurance agent under
subsection (b) of such section, A LICENSED TITLE INSURANCE AGENT or a
licensed insurance broker.
S 6. Subsection (c) of section 2109 of the insurance law is amended to
read as follows:
(c) Such license or licenses shall authorize the person or persons
named therein to renew the business of the deceased, absent or disabled
INSURANCE agent, TITLE INSURANCE AGENT, or INSURANCE broker, or both AN
INSURANCE AGENT AND INSURANCE BROKER, as the case may be, or of the firm
or, in the case of a license issued pursuant to paragraph one or three
of subsection (a) [hereof] OF THIS SECTION, the association whose busi-
ness is being continued thereunder, each such agent, broker, firm or
association being referred to in this section as "original licensee",
expiring during the period in which such temporary license or licenses
are in force, to collect premiums due and payable to the original licen-
see or, in the case of a license issued pursuant to paragraph one of
subsection (a) [hereof] OF THIS SECTION, to his estate, and to perform
such other acts as an insurance agent, TITLE INSURANCE AGENT or as an
insurance broker, or both AN INSURANCE AGENT AND INSURANCE BROKER, as
the case may be, as are incidental to the continuance of the insurance
business of such original licensee.
S 7. Paragraph 4 of subsection (e) of section 2109 of the insurance
law, as amended by chapter 687 of the laws of 2003, is amended to read
as follows:
(4) No person or persons so licensed, EXCEPT FOR A TITLE INSURANCE
AGENT, shall, by virtue of such license, be authorized to solicit, nego-
tiate or sell new insurance.
S 8. Paragraph 3 of subsection (f) of section 2109 of the insurance
law is amended to read as follows:
(3) No person so licensed, EXCEPT FOR A TITLE INSURANCE AGENT, shall
solicit new business under such license.
S 9. Paragraph 2 of subsection (g) of section 2109 of the insurance
law, as amended by chapter 687 of the laws of 2003, is amended to read
as follows:
(2) No person or persons so licensed, EXCEPT FOR A TITLE INSURANCE
AGENT, shall, by virtue of such license, be authorized to solicit, nego-
tiate or sell new insurance.
S 10. The section heading and subsections (a) and (b) of section 2110
of the insurance law, as amended by chapter 499 of the laws of 2009, are
amended to read as follows:
Revocation or suspension of license of insurance producer, insurance
consultant, adjuster [or], life settlement broker OR TITLE INSURANCE
AGENT. (a) The superintendent may refuse to renew, revoke, or may
suspend for a period the superintendent determines the license of any
insurance producer, TITLE INSURANCE AGENT, insurance consultant, adjus-
ter or life settlement broker, if, after notice and hearing, the super-
intendent determines that the licensee or any sub-licensee has:
(1) violated any insurance laws, or violated any regulation, subpoena
or order of the superintendent or of another state's insurance commis-
S. 5923 4
sioner, or has violated any law in the course of his or her dealings in
such capacity;
(2) provided materially incorrect, materially misleading, materially
incomplete or materially untrue information in the license application;
(3) obtained or attempted to obtain a license through misrepresen-
tation or fraud;
(4)(A) used fraudulent, coercive or dishonest practices;
(B) demonstrated incompetence;
(C) demonstrated untrustworthiness; or
(D) demonstrated financial irresponsibility in the conduct of business
in this state or elsewhere;
(5) improperly withheld, misappropriated or converted any monies or
properties received in the course of business in this state or else-
where;
(6) intentionally misrepresented the terms of an actual or proposed
insurance contract, life settlement contract or application for insur-
ance;
(7) has been convicted of a felony;
(8) admitted or been found to have committed any insurance unfair
trade practice or fraud;
(9) had an insurance producer license, a life settlement broker
license, TITLE INSURANCE AGENT LICENSE, or its equivalent, denied,
suspended or revoked in any other state, province, district or territo-
ry;
(10) forged another's name to an application for insurance or life
settlement contract or to any document related to an insurance or life
settlement transaction;
(11) improperly used notes or any other reference material to complete
an examination for an insurance license or life settlement broker
license;
(12) knowingly accepted insurance business from an individual who is
not licensed;
(13) failed to comply with an administrative or court order imposing a
child support obligation;
(14) failed to pay state income tax or comply with any administrative
or court order directing payment of state income tax;
(15) while acting as a life settlement broker, failed to protect the
privacy of the insured or owner or other person for whom the life
settlement broker was required to provide protection pursuant to article
seventy-eight of this chapter; or
(16) ceased to meet the requirements for licensure under this chapter.
(b) Before revoking or suspending the license of any insurance produc-
er, TITLE INSURANCE AGENT, life settlement broker or other licensee
pursuant to the provisions of this article, the superintendent shall,
except when proceeding pursuant to subsection (f) of this section, give
notice to the licensee and to every sub-licensee and shall hold, or
cause to be held, a hearing not less than ten days after the giving of
such notice.
S 11. Subsections (a) and (d) of section 2112 of the insurance law,
subsection (a) as amended by chapter 540 of the laws of 1996 and
subsection (d) as amended by chapter 687 of the laws of 2003, are
amended to read as follows:
(a) Every insurer, fraternal benefit society or health maintenance
organization doing business in this state shall file a certificate of
appointment in such form as the superintendent may prescribe in order to
S. 5923 5
appoint insurance agents OR TITLE INSURANCE AGENTS to represent such
insurer, fraternal benefit society or health maintenance organization.
(d) Every insurer, fraternal benefit society or health maintenance
organization or insurance producer or the authorized representative of
the insurer, fraternal benefit society, health maintenance organization
or insurance producer doing business in this state shall, upon termi-
nation of the certificate of appointment as set forth in subsection (a)
of this section of any insurance agent OR TITLE INSURANCE AGENT licensed
in this state, or upon termination for cause for activities as set forth
in subsection (a) of section two thousand one hundred ten of this arti-
cle, of the certificate of appointment, of employment, of a contract or
other insurance business relationship with any insurance producer, file
with the superintendent within thirty days a statement, in such form as
the superintendent may prescribe, of the facts relative to such termi-
nation for cause. The insurer, fraternal benefit society, health mainte-
nance organization, insurance producer or the authorized representative
of the insurer, fraternal benefit society, health maintenance organiza-
tion or insurance producer shall provide, within fifteen days after
notification has been sent to the superintendent, a copy of the state-
ment filed with the superintendent to the insurance producer at his, or
her or its last known address by certified mail, return receipt
requested, postage prepaid or by overnight delivery using a nationally
recognized carrier. Every statement made pursuant to this subsection
shall be deemed a privileged communication.
S 12. The insurance law is amended by adding a new section 2113 to
read as follows:
S 2113. TITLE INSURANCE AGENTS; PROHIBITED PAYMENTS. (A) NO TITLE
INSURANCE AGENT OR ANY REPRESENTATIVE OF SUCH AGENT DOING BUSINESS IN
THIS STATE, SHALL PAY ANY PERCENTAGE OF THE TITLE INSURANCE PREMIUM OR
FEES COLLECTED TO ANY OTHER TITLE INSURANCE AGENT OR ANY REPRESENTATIVE
OF SUCH AGENT.
(B) A TITLE INSURANCE AGENT SHALL NOT DIRECTLY OR INDIRECTLY ACCEPT
ANY PAYMENT FOR OR REIMBURSEMENT OF ANY FEE, FINE OR PENALTY IMPOSED BY
THE SUPERINTENDENT ON THE TITLE INSURANCE AGENT PURSUANT TO THIS CHAP-
TER.
S 13. The section heading and subsections (a) and (c) of section 2120
of the insurance law are amended to read as follows:
Fiduciary capacity of insurance agents, TITLE INSURANCE AGENTS, insur-
ance brokers and reinsurance intermediaries. (a) Every insurance agent,
TITLE INSURANCE AGENT and [every] insurance broker acting as such in
this state shall be responsible in a fiduciary capacity for all funds
received or collected as insurance agent, TITLE INSURANCE AGENT or
insurance broker, and shall not, without the express consent of his, HER
or its principal, mingle any such funds with his, HER or its own funds
or with funds held by him, HER or it in any other capacity.
(c) This section shall not require any such INSURANCE agent, TITLE
INSURANCE AGENT, INSURANCE broker or reinsurance intermediary to main-
tain a separate bank deposit for the funds of each such principal, if
and as long as the funds so held for each such principal are reasonably
ascertainable from the books of account and records of such agent,
broker or reinsurance intermediary, as the case may be.
S 14. The section heading and subsection (a) of section 2122 of the
insurance law are amended to read as follows:
Advertising by insurance [agents and brokers] PRODUCERS. (a) (1) No
insurance [agent or insurance broker] PRODUCER shall make or issue in
this state any advertisement, sign, pamphlet, circular, card or other
S. 5923 6
public announcement purporting to make known the financial condition of
any insurer, unless the same shall conform to the requirements of
section one thousand three hundred thirteen of this chapter.
(2) No insurance [agent, insurance broker] PRODUCER or other person,
shall, by any advertisement or public announcement in this state, call
attention to any unauthorized insurer or insurers.
S 15. Subsections (a) and (b) of section 2128 of the insurance law are
amended to read as follows:
(a) Notwithstanding the provisions of sections two thousand three
hundred twenty-four and four thousand two hundred twenty-four of this
chapter, no [insurance agent, insurance broker, insurance consultant,
excess line broker, reinsurance intermediary or insurance adjuster]
LICENSEE SUBJECT TO THIS CHAPTER shall receive any commissions or fees
or shares thereof in connection with insurance coverages placed for or
insurance services rendered to the state, its agencies and departments,
public benefit corporations, municipalities and other governmental
subdivisions in this state, unless such [insurance agent, insurance
broker, insurance consultant, excess line broker, reinsurance interme-
diary or insurance adjuster] LICENSEE actually placed insurance cover-
ages on behalf of or rendered insurance services to the state, its agen-
cies and departments, public benefit corporations, municipalities and
other governmental subdivisions in this state.
(b) The superintendent shall, by regulation, require [insurance
agents, insurance brokers, insurance consultants, excess line brokers,
reinsurance intermediaries and insurance adjusters] LICENSEES SUBJECT TO
THIS CHAPTER to file disclosure statements with the insurance department
and the most senior official of the governmental unit involved, with
respect to any insurance coverages placed for or insurance services
rendered to the state, its agencies and departments, public benefit
corporations, municipalities and other governmental subdivisions in this
state, EXCEPT THAT TITLE INSURANCE CORPORATIONS AND TITLE INSURANCE
AGENTS SHALL ONLY BE REQUIRED TO FILE DISCLOSURE STATEMENTS ANNUALLY.
ANY SUBMISSIONS MADE PURSUANT TO THIS SECTION SHALL BE DEEMED TRADE
SECRETS WHICH IF DISCLOSED TO ANY THIRD PARTY WOULD CAUSE SUBSTANTIAL
INJURY TO THE COMPETITIVE POSITION OF THE SUBMITTER. AS SUCH, SAID
DISCLOSURES ARE EXEMPT FROM FREEDOM OF INFORMATION LAW REQUESTS PURSUANT
TO PARAGRAPH (D) OF SUBDIVISION TWO OF SECTION EIGHT-SEVEN OF THE PUBLIC
OFFICERS LAW.
S 16. Subsection (b) of section 2132 of the insurance law, as amended
by chapter 499 of the laws of 2009, is amended to read as follows:
(b) This section shall not apply to:
(1) those persons holding licenses for which an examination is not
required by the laws of this state;
(2) any limited licensees or any other licensees as the superintendent
may exempt subject to any continuing education requirements deemed
appropriate by the superintendent; [or]
(3) for purposes of the continuing education requirements for life
settlements, an insurance producer with a life line of authority who is
acting as a life settlement broker pursuant to section two thousand one
hundred thirty-seven of this article[.]; OR
(4) FOR PURPOSES OF A TITLE INSURANCE AGENT LICENSE, AN ATTORNEY
LICENSED TO PRACTICE LAW IN THIS STATE, PROVIDED SAID ATTORNEY IS IN
GOOD STANDING WITH THE NEW YORK STATE OFFICE OF COURT ADMINISTRATION.
S 17. The insurance law is amended by adding a new section 2139 to
read as follows:
S. 5923 7
S 2139. TITLE INSURANCE AGENTS; LICENSING.(A) THE SUPERINTENDENT MAY
ISSUE A LICENSE TO ANY PERSON, FIRM, ASSOCIATION OR CORPORATION WHO OR
WHICH HAS COMPLIED WITH THE REQUIREMENTS OF THIS CHAPTER, AUTHORIZING
THE LICENSEE TO ACT AS A TITLE INSURANCE AGENT OF ANY AUTHORIZED TITLE
INSURANCE CORPORATION.
(B) ANY SUCH LICENSE ISSUED TO A FIRM OR ASSOCIATION SHALL AUTHORIZE
ONLY THE MEMBERS THEREOF, NAMED IN SUCH LICENSE AS SUB-LICENSEES, TO ACT
INDIVIDUALLY AS TITLE INSURANCE AGENTS THEREUNDER, AND ANY SUCH LICENSE
ISSUED TO A CORPORATION SHALL AUTHORIZE ONLY THE OFFICERS AND DIRECTORS
THEREOF, NAMED IN SUCH LICENSE AS SUB-LICENSEES, TO ACT INDIVIDUALLY AS
TITLE INSURANCE AGENTS THEREUNDER. EVERY SUB-LICENSEE ACTING AS A TITLE
INSURANCE AGENT PURSUANT TO SUCH A LICENSE SHALL BE AUTHORIZED SO TO ACT
ONLY IN THE NAME OF THE LICENSEE. IN THE CASE OF A LICENSE ISSUED TO A
TITLE INSURANCE AGENT, AT LEAST ONE DESIGNATED SUB-LICENSEE MUST HAVE A
FINANCIAL OR OTHER BENEFICIAL INTEREST IN THE LICENSEE.
(C) EVERY INDIVIDUAL APPLICANT FOR A LICENSE UNDER THIS SECTION AND
EVERY PROPOSED LICENSEE SHALL BE EIGHTEEN YEARS OF AGE OR OLDER AT THE
TIME OF THE ISSUANCE OF SUCH LICENSE.
(D)(1) BEFORE ANY ORIGINAL TITLE INSURANCE AGENT'S LICENSE IS ISSUED,
THERE SHALL BE ON FILE IN THE OFFICE OF THE SUPERINTENDENT AN APPLICA-
TION BY THE PROSPECTIVE LICENSEE IN SUCH FORM OR FORMS AND SUPPLEMENTS
THERETO, ALONG WITH A FEE IN THE AMOUNT OF FORTY DOLLARS FOR EACH YEAR
OR FRACTION OF A YEAR IN WHICH THE LICENSE SHALL BE VALID, AND CONTAIN-
ING INFORMATION THE SUPERINTENDENT PRESCRIBES. FOR EACH BUSINESS ENTITY,
THE SUB-LICENSEE OR SUB-LICENSEES NAMED IN THE APPLICATION SHALL BE
DESIGNATED RESPONSIBLE FOR THE BUSINESS ENTITY'S COMPLIANCE WITH THIS
CHAPTER AND REGULATION PROMULGATED THEREUNDER.
(2) THE SUPERINTENDENT MAY REQUIRE ANY INDIVIDUAL NAMED IN THE APPLI-
CATION FOR SUCH LICENSE TO SUBMIT A SET OF FINGERPRINTS. SUCH FINGER-
PRINTS SHALL BE SUBMITTED TO THE DIVISION OF CRIMINAL JUSTICE SERVICES
FOR A STATE A CRIMINAL HISTORY RECORD CHECK. FOR THE PURPOSES OF THIS
PARAGRAPH, "CRIMINAL HISTORY RECORD" SHALL MEAN A RECORD OF ALL
CONVICTIONS OF CRIMES AND ANY PENDING CRIMINAL CHARGES MAINTAINED ON AN
INDIVIDUAL BY THE DIVISION OF CRIMINAL JUSTICE SERVICES AND THE FEDERAL
BUREAU OF INVESTIGATION. ALL SUCH CRIMINAL HISTORY RECORDS SENT TO THE
SUPERINTENDENT PURSUANT TO THIS PARAGRAPH SHALL BE CONFIDENTIAL PURSUANT
TO THE APPLICABLE FEDERAL AND STATE LAWS, RULES AND REGULATIONS, AND
SHALL NOT BE PUBLISHED OR IN ANY WAY DISCLOSED TO PERSONS OTHER THAN THE
SUPERINTENDENT, UNLESS OTHERWISE AUTHORIZED BY LAW. THE SUPERINTENDENT
SHALL PROVIDE SUCH APPLICANT WITH A COPY OF HIS OR HER CRIMINAL HISTORY
RECORD, IF ANY, TOGETHER WITH A COPY OF ARTICLE TWENTY-THREE-A OF THE
CORRECTION LAW, AND INFORM SUCH APPLICANT OF HIS OR HER RIGHT TO SEEK
CORRECTION OF ANY INCORRECT INFORMATION CONTAINED IN SUCH RECORD PURSU-
ANT TO REGULATIONS AND PROCEDURES ESTABLISHED BY THE DIVISION OF CRIMI-
NAL JUSTICE SERVICES. ALL DETERMINATIONS TO GRANT OR DENY CLEARANCE FOR
LICENSURE PURSUANT TO THIS SECTION SHALL BE IN ACCORDANCE WITH SUBDIVI-
SION SIXTEEN OF SECTION TWO HUNDRED NINETY-SIX OF THE EXECUTIVE LAW AND
ARTICLE TWENTY-THREE-A OF THE CORRECTION LAW. WHEN THE SUPERINTENDENT
DENIES AN APPLICATION, WRITTEN NOTICE OF SUCH DETERMINATION SHALL BE
GIVEN TO THE PROSPECTIVE APPLICANT WHO SHALL BE AFFORDED NOTICE AND THE
RIGHT TO BE HEARD AND OFFER PROOF IN OPPOSITION TO SUCH DETERMINATION.
(E) THE SUPERINTENDENT SHALL, IN ORDER TO DETERMINE THE COMPETENCY OF
EVERY INDIVIDUAL APPLICANT AND OF EVERY PROPOSED SUB-LICENSEE FOR THE
TITLE INSURANCE AGENT LICENSE, REQUIRE SUCH INDIVIDUAL TO SUBMIT TO A
PERSONAL WRITTEN EXAMINATION AND TO PASS THE SAME TO THE SATISFACTION OF
THE SUPERINTENDENT. THE EXAMINATION SHALL BE HELD AT SUCH TIMES AND
S. 5923 8
PLACES AS THE SUPERINTENDENT SHALL FROM TIME TO TIME DETERMINE. EVERY
INDIVIDUAL APPLYING TO TAKE ANY WRITTEN EXAMINATION SHALL, AT THE TIME
OF APPLYING THEREFOR, PAY TO THE SUPERINTENDENT OR, AT THE DISCRETION OF
THE SUPERINTENDENT, DIRECTLY TO ANY ORGANIZATION THAT IS UNDER CONTRACT
TO PROVIDE EXAMINATION SERVICES, AN EXAMINATION FEE OF AN AMOUNT THAT IS
THE ACTUAL DOCUMENTED ADMINISTRATIVE COST OF CONDUCTING SAID QUALIFYING
EXAMINATION AS CERTIFIED BY THE SUPERINTENDENT FROM TIME TO TIME. AN
EXAMINATION FEE REPRESENTS AN ADMINISTRATIVE EXPENSE AND SHALL NOT BE
REFUNDABLE. THE SUPERINTENDENT MAY ACCEPT, IN LIEU OF ANY SUCH EXAMINA-
TION, THE RESULT OF ANY PREVIOUS WRITTEN EXAMINATION, GIVEN BY THE
SUPERINTENDENT, WHICH IN THE SUPERINTENDENT'S JUDGMENT, IS EQUIVALENT TO
THE EXAMINATION FOR WHICH IT IS SUBSTITUTED.
(F) EVERY INDIVIDUAL SEEKING TO QUALIFY TO OBTAIN A LICENSE UNDER
SUBSECTION (B) OF THIS SECTION SHALL BE REQUIRED TO PASS THE TYPE OR
TYPES OF EXAMINATION PRESCRIBED BY THE SUPERINTENDENT FOR WHICH THE
LICENSE IS SOUGHT.
(G) NO SUCH WRITTEN EXAMINATION OR PRE-LICENSING EDUCATION SHALL BE
REQUIRED OF ANY:
(1) APPLICANT WHO HAS PASSED THE WRITTEN EXAMINATION GIVEN BY THE
SUPERINTENDENT FOR A TITLE INSURANCE AGENT'S LICENSE AND WAS LICENSED AS
SUCH, OR OF ANY APPLICANT WHO WAS LICENSED AS A TITLE INSURANCE AGENT
BUT DID NOT PASS SUCH AN EXAMINATION; PROVIDED THE APPLICANT APPLIES
WITHIN TWO YEARS FOLLOWING THE DATE OF TERMINATION OF THE APPLICANT'S
LICENSE;
(2) APPLICANT SEEKING TO OBTAIN A LICENSE AS A TITLE INSURANCE AGENT,
WHEN SUCH APPLICANT IS A LICENSED ATTORNEY-AT-LAW IN THIS STATE PROVIDED
SAID ATTORNEY IS IN GOOD STANDING WITH THE NEW YORK STATE OFFICE OF
COURT ADMINISTRATION;
(3) INDIVIDUAL SEEKING TO BE NAMED A LICENSEE OR SUB-LICENSEE, WHO IS
A NON-RESIDENT AND HAS BEEN A TITLE INSURANCE AGENT IN THE INDIVIDUAL'S
HOME STATE FOR AT LEAST FIVE YEARS; PROVIDED, HOWEVER, THAT THE INDIVID-
UAL'S HOME STATE GRANTS NON-RESIDENT LICENSES TO RESIDENTS OF THIS STATE
ON THE SAME BASIS.
(H) NOTWITHSTANDING ANY OTHER PROVISION OF THIS SECTION, NO COURSE OF
STUDY OR WRITTEN EXAMINATION SHALL BE REQUIRED WITH RESPECT TO ANY
APPLICANT WHO FILES AN APPLICATION UNDER THIS SECTION WITHIN ONE YEAR
AFTER THE EFFECTIVE DATE OF THIS ARTICLE AND WHO DEMONSTRATES TO THE
SATISFACTION OF THE SUPERINTENDENT THAT SUCH PROSPECTIVE LICENSEE OR ITS
PROSPECTIVE SUB-LICENSEE HAS REGULARLY AND CONTINUOUSLY PERFORMED THE
FUNCTIONS OF A TITLE INSURANCE AGENT IN THIS STATE FOR A PERIOD OF AT
LEAST FIVE YEARS IMMEDIATELY PRECEDING THE FILING OF SUCH APPLICATION.
(I) THE SUPERINTENDENT MAY REFUSE TO ISSUE TO AN APPLICATION A TITLE
INSURANCE AGENT'S LICENSE IF, IN THE SUPERINTENDENT'S JUDGMENT, THE
PROPOSED LICENSEE OR ANY SUB-LICENSEE: IS NOT TRUSTWORTHY AND COMPETENT
TO ACT AS SUCH AGENT; HAS GIVEN CAUSE FOR THE REVOCATION OR SUSPENSION
OF SUCH A LICENSE; OR HAS FAILED TO COMPLY WITH ANY PREREQUISITE FOR THE
ISSUANCE OF SUCH LICENSE.
(J) (1) EVERY LICENSE ISSUED TO A BUSINESS ENTITY PURSUANT TO
SUBSECTION (A) OF THIS SECTION SHALL EXPIRE ON JUNE THIRTIETH OF
ODD-NUMBERED YEARS.
(2) EVERY LICENSE ISSUED TO AN INDIVIDUAL BORN IN AN ODD-NUMBERED YEAR
SHALL EXPIRE ON THE INDIVIDUAL'S BIRTHDAY IN EACH ODD-NUMBERED YEAR.
LICENSES ISSUED TO INDIVIDUALS BORN IN EVEN-NUMBERED YEARS SHALL EXPIRE
ON THE INDIVIDUAL'S BIRTHDAY IN EACH EVEN-NUMBERED YEAR. EVERY SUCH
LICENSE MAY BE RENEWED FOR THE ENSUING PERIOD OF TWENTY-FOUR MONTHS UPON
THE FILING OF AN APPLICATION IN CONFORMITY WITH THIS SUBSECTION.
S. 5923 9
(3) THE LICENSE MAY BE ISSUED FOR ALL OF SUCH TWO YEAR TERMS, OR UPON
APPLICATION MADE DURING ANY SUCH TERM, FOR THE BALANCE THEREOF.
(4) ANY LICENSE SHALL BE CONSIDERED IN GOOD STANDING WITHIN THE
LICENSE TERM UNLESS:
(A) REVOKED OR SUSPENDED BY THE SUPERINTENDENT PURSUANT TO THIS ARTI-
CLE; OR
(B) IF AT THE EXPIRATION DATE OF THE LICENSE TERM, THE LICENSEE FAILS
TO FILE A RENEWAL APPLICATION, PROVIDED THE LICENSE WAS IN GOOD STANDING
DURING THE TERM.
(5) BEFORE THE RENEWAL OF ANY TITLE INSURANCE AGENT'S LICENSE SHALL BE
ISSUED, THE LICENSEE SHALL HAVE:
(A) FILED A COMPLETED RENEWAL APPLICATION IN SUCH FORM OR FORMS, AND
SUPPLEMENTS THERETO, AND CONTAINING SUCH INFORMATION AS THE SUPERINTEN-
DENT MAY PRESCRIBE;
(B) SUBMITTED EVIDENCE OF COMPLIANCE WITH CONTINUING EDUCATION
REQUIREMENT PURSUANT TO SECTION TWO THOUSAND ONE HUNDRED FORTY OF THIS
ARTICLE.
(C) PAID SUCH FEES AS ARE PRESCRIBED IN THIS SECTION.
(6) IF AN APPLICATION FOR A RENEWAL LICENSE SHALL HAVE BEEN FILED WITH
THE SUPERINTENDENT BEFORE THE EXPIRATION OF SUCH LICENSE, THEN THE
LICENSE SOUGHT TO BE RENEWED SHALL CONTINUE IN FULL FORCE AND EFFECT
EITHER UNTIL THE ISSUANCE BY THE SUPERINTENDENT OF THE RENEWAL LICENSE
APPLIED FOR OR UNTIL FIVE DAYS AFTER THE SUPERINTENDENT SHALL HAVE
REFUSED TO ISSUE SUCH RENEWAL LICENSE AND SHALL HAVE GIVEN NOTICE OF
SUCH REFUSAL TO THE APPLICANT AND TO EACH PROPOSED SUB-LICENSEE. BEFORE
REFUSING TO RENEW ANY SUCH LICENSE, EXCEPT ON THE GROUND OF FAILURE TO
PASS A WRITTEN EXAMINATION, THE SUPERINTENDENT SHALL NOTIFY THE APPLI-
CANT OF THE SUPERINTENDENT'S INTENTION TO DO SO AND SHALL GIVE THE
APPLICANT A HEARING.
(7) THE SUPERINTENDENT MAY, IN ISSUING A RENEWAL LICENSE, DISPENSE
WITH THE REQUIREMENTS OF A VERIFIED APPLICATION BY ANY INDIVIDUAL LICEN-
SEE OR SUB-LICENSEE WHO, BY REASON OF BEING ENGAGED IN ANY MILITARY
SERVICE FOR THE UNITED STATES, IS UNABLE TO MAKE PERSONAL APPLICATION
FOR SUCH RENEWAL LICENSE, UPON THE FILING OF AN APPLICATION ON BEHALF OF
SUCH INDIVIDUAL, IN SUCH FORM AS THE SUPERINTENDENT SHALL PRESCRIBE, BY
SOME PERSON OR PERSONS WHO IN HIS JUDGMENT HAVE KNOWLEDGE OF THE FACTS
AND WHO MAKE AFFIDAVIT SHOWING SUCH MILITARY SERVICE AND THE INABILITY
OF SUCH TITLE INSURANCE AGENT TO MAKE A PERSONAL APPLICATION.
(8) AN INDIVIDUAL LICENSEE OR SUB-LICENSEE WHO IS UNABLE TO COMPLY
WITH LICENSE RENEWAL PROCEDURES DUE TO OTHER EXTENUATING CIRCUMSTANCES,
SUCH AS A LONG-TERM MEDICAL DISABILITY, MAY REQUEST A WAIVER OF SUCH
PROCEDURES, IN SUCH FORM AS THE SUPERINTENDENT SHALL PRESCRIBE. THE
LICENSEE OR SUB-LICENSEE MAY ALSO REQUEST A WAIVER OF ANY EXAMINATION
REQUIREMENT OR ANY OTHER FINE OR SANCTION IMPOSED FOR FAILURE TO COMPLY
WITH RENEWAL PROCEDURES.
(9) AN APPLICATION FOR THE RENEWAL OF A LICENSE SHALL BE FILED WITH
THE SUPERINTENDENT NOT LESS THAN SIXTY DAYS PRIOR TO THE DATE THE
LICENSE EXPIRES OR THE APPLICANT SHALL BE SUBJECT TO A FURTHER FEE OF
TEN DOLLARS FOR LATE FILING.
(10) NO LICENSE FEE SHALL BE REQUIRED OF ANY PERSON WHO SERVED AS A
MEMBER OF THE ARMED FORCES OF THE UNITED STATES AT ANY TIME, AND WHO
SHALL HAVE BEEN DISCHARGED THEREFROM UNDER CONDITIONS OTHER THAN
DISHONORABLE, IN A CURRENT LICENSING PERIOD FOR THE DURATION OF SUCH
PERIOD.
(11) EXCEPT WHERE A CORPORATION, ASSOCIATION OR FIRM LICENSED AS A
TITLE INSURANCE AGENT IS APPLYING TO ADD A SUB-LICENSEE, OR THE DATE OF
S. 5923 10
THE EXPIRATION OF THE LICENSE IS CHANGED, THERE SHALL BE NO FEE REQUIRED
FOR THE ISSUANCE OF AN AMENDED LICENSE.
(12) THE SUPERINTENDENT MAY ISSUE A REPLACEMENT LICENSE FOR A CURRENT-
LY IN-FORCE LICENSE THAT HAS BEEN LOST OR DESTROYED. BEFORE SUCH
REPLACEMENT LICENSE SHALL BE ISSUED, THERE SHALL BE ON FILE IN THE
OFFICE OF THE SUPERINTENDENT A WRITTEN APPLICATION FOR SUCH REPLACEMENT
LICENSE, AFFIRMING UNDER PENALTY OF PERJURY THAT THE ORIGINAL LICENSE
HAS BEEN LOST OR DESTROYED, TOGETHER WITH A FEE OF FIFTEEN DOLLARS.
(K) THE SUPERINTENDENT MAY REFUSE TO ISSUE A LICENSE OR RENEWAL
LICENSE, AS THE CASE MAY BE, TO ANY APPLICANT IF THE SUPERINTENDENT
FINDS THAT SUCH APPLICANT HAS BEEN OR WILL BE, AS AFORESAID, RECEIVING
ANY BENEFIT OR ADVANTAGE IN VIOLATION OF SECTION SIX THOUSAND FOUR
HUNDRED NINE OF THIS CHAPTER, OR IF THE SUPERINTENDENT FINDS THAT MORE
THAN TEN PERCENT OF THE AGGREGATE NET COMMISSIONS RECEIVED DURING THE
TERM OF THE EXISTING LICENSE, IF ANY, OR TO BE RECEIVED DURING THE TERM
OF THE LICENSE APPLIED FOR, BY THE APPLICANT, RESULTED OR WILL RESULT
FROM INSURANCE ON THE PROPERTY AND RISKS SET FORTH IN SUBPARAGRAPHS (A),
(B) AND (C) OF PARAGRAPH ONE OF SUBSECTION (I) OF SECTION TWO THOUSAND
ONE HUNDRED THREE OF THIS ARTICLE.
(L) ALL LICENSED TITLE INSURANCE AGENTS SHALL BE ENTITLED TO THE DUE
PROCESS PROVISIONS AS PROVIDED BY THE STATE ADMINISTRATIVE PROCEDURE
ACT.
S 18. The insurance law is amended by adding a new section 2140 to
read as follows:
S 2140. CONTINUING EDUCATION FOR TITLE INSURANCE AGENTS. (A) THIS
SECTION SHALL APPLY TO TITLE INSURANCE AGENTS LICENSED PURSUANT TO THIS
ARTICLE WHO ARE NATURAL PERSONS AND TO INDIVIDUALS DESIGNATED AS A SUB-
LICENSEE TO FULFILL THE CONTINUING EDUCATION REQUIREMENTS FOR AN ENTITY
LICENSED UNDER THIS ARTICLE.
(B) THE FOLLOWING INDIVIDUALS SHALL BE EXEMPT FROM THESE REQUIREMENTS:
(1) AN ATTORNEY LICENSED TO PRACTICE LAW IN THIS STATE PROVIDED SAID
ATTORNEY IS IN GOOD STANDING WITH THE OFFICE OF COURT ADMINISTRATION;
(2) ANY LICENSEES AS THE SUPERINTENDENT MAY EXEMPT SUBJECT TO ANY
CONTINUING EDUCATION REQUIREMENTS DEEMED APPROPRIATE BY THE SUPERINTEN-
DENT.
(C) PERSONS LICENSED PURSUANT TO THIS ARTICLE AND NOT EXEMPT UNDER
THIS ARTICLE, SHALL BIENNIALLY SATISFACTORILY COMPLETE SUCH COURSES OR
PROGRAMS OF INSTRUCTION AS MAY BE APPROVED BY THE SUPERINTENDENT, 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, SATISFACTORILY COMPLETE COURSES OR PROGRAMS
OF INSTRUCTION OR ATTEND SEMINARS AS MAY BE APPROVED BY THE SUPERINTEN-
DENT EQUIVALENT TO FIFTEEN CREDIT HOURS OF INSTRUCTION.
(2) EXCESS CREDIT HOURS ACCUMULATED DURING ANY BIENNIAL LICENSING
PERIOD SHALL NOT CARRY FORWARD TO THE NEXT BIENNIAL LICENSING PERIOD.
(D)(1) THE COURSES OR PROGRAMS OF INSTRUCTION SUCCESSFULLY COMPLETED,
WHICH SHALL BE DEEMED TO MEET THE SUPERINTENDENT'S STANDARDS FOR CONTIN-
UING EDUCATION REQUIREMENTS, SHALL BE COURSES, PROGRAMS OF INSTRUCTION
OR SEMINARS, APPROVED AS TO METHOD AND CONTENT BY THE SUPERINTENDENT,
RELATED TO TITLE INSURANCE, AND GIVEN BY A DEGREE CONFERRING COLLEGE OR
UNIVERSITY WHOSE CURRICULUM IS REGISTERED WITH THE STATE EDUCATION
DEPARTMENT AT THE TIME THE PERSON TAKES THE COURSE, WHETHER SUCH COURSE
BE GIVEN AS PART OF SUCH CURRICULUM OR SEPARATELY, OR BY ANY OTHER
INSTITUTION, AGENTS' ASSOCIATION, TRADE ASSOCIATION, BAR ASSOCIATION OR
TITLE INSURANCE CORPORATION, WHICH MAINTAINS EQUIVALENT STANDARDS OF
S. 5923 11
INSTRUCTION AND WHICH SHALL HAVE BEEN APPROVED FOR SUCH PURPOSE BY THE
SUPERINTENDENT.
(2) THE NUMBER OF CREDIT HOURS ASSIGNED TO EACH OF THE COURSES OR
PROGRAMS OF INSTRUCTION SET FORTH IN PARAGRAPH ONE OF THIS SUBSECTION
SHALL BE DETERMINED BY THE SUPERINTENDENT.
(E) A PERSON WHO TEACHES ANY APPROVED COURSE OF INSTRUCTION OR WHO
LECTURES AT ANY APPROVED SEMINAR, AND WHO IS SUBJECT TO THIS SECTION,
SHALL BE GRANTED THREE CREDIT HOURS FOR EACH FIFTY MINUTES OF PRESENTA-
TION AND ONE CREDIT FOR EACH FIFTY MINUTES OF REPEAT PRESENTATIONS
DURING ANY BIENNIAL LICENSING PERIOD.
(F) EVERY PERSON SUBJECT TO THIS SECTION SHALL FURNISH, IN A FORM
SATISFACTORY TO THE SUPERINTENDENT, CERTIFICATION ATTESTING TO THE
COURSE OR PROGRAMS OF INSTRUCTION TAKEN AND SUCCESSFULLY COMPLETED BY
SUCH PERSON PURSUANT TO SUBSECTION (D) OF THIS SECTION.
(G) (1) ANY PERSON FAILING TO MEET THE REQUIREMENTS IMPOSED BY THIS
SECTION SHALL NOT BE ELIGIBLE TO RENEW THE LICENSE.
(2) ANY PERSON WHOSE LICENSE WAS NOT RENEWED SHALL NOT BE ELIGIBLE TO
BECOME RELICENSED DURING THE NEXT BIENNIAL LICENSING PERIOD UNTIL THAT
PERSON HAS DEMONSTRATED TO THE SATISFACTION OF THE SUPERINTENDENT THAT
CONTINUING EDUCATION REQUIREMENTS FOR THE LAST BIENNIAL LICENSING PERIOD
WERE MET.
(3) ANY PERSON WHOSE LICENSE WAS NOT RENEWED PURSUANT TO PARAGRAPH ONE
OF THIS SUBSECTION, WHO ACCUMULATES SUFFICIENT CREDIT HOURS FOR THE
PRIOR LICENSING PERIOD TO QUALIFY FOR RELICENSING IN THE BIENNIAL PERIOD
FOLLOWING SUCH NON-RENEWAL, MAY NOT APPLY THOSE SAME CREDIT HOURS TOWARD
THE CONTINUING EDUCATION REQUIREMENTS FOR THE CURRENT BIENNIAL LICENSING
PERIOD.
(H)(1) ANY ENTITY ELIGIBLE TO PROVIDE COURSES, PROGRAMS OF INSTRUC-
TION, OR SEMINARS IN ACCORDANCE WITH SUBSECTION (D) OF THIS SECTION,
MUST FILE FOR APPROVAL BY THE SUPERINTENDENT ON A BIENNIAL BASIS, TO
CONFORM WITH ITS AREA OF INSTRUCTION, A PROVIDER ORGANIZATION APPLICA-
TION AND A COURSE SUBMISSION APPLICATION FOR EACH COURSE, PROGRAM AND
SEMINAR, AND COURSES MAY BE ADDED ON APPROVAL BY THE SUPERINTENDENT
DURING THE PERIOD ON NOTIFICATION TO THE SUPERINTENDENT AND PAYMENT OF
THE APPROPRIATE FILING FEE.
(2) THE PROVIDER ORGANIZATION APPLICATION SHALL INCLUDE THE NAMES OF
ALL INSTRUCTORS TO BE USED DURING THE CONTRACT PERIOD, AND INSTRUCTORS
MAY BE ADDED DURING THE PERIOD BY NOTIFYING THE SUPERINTENDENT AND
PAYING THE APPROPRIATE FILING FEE.
(3) THE COMPLETED APPLICATIONS SHALL BE RETURNED IN A TIMELY MANNER,
AS SPECIFIED BY THE SUPERINTENDENT, WITH A NON-REFUNDABLE FILING FEE OF
TWO HUNDRED DOLLARS PER ORGANIZATION, FIFTY DOLLARS PER COURSE, PROGRAM
AND SEMINAR, AND FIFTY DOLLARS PER INSTRUCTOR.
(4) APPROVAL OF THE APPLICATION SHALL BE AT THE DISCRETION OF THE
SUPERINTENDENT.
(I) EACH LICENSEE SHALL PAY A BIENNIAL FEE OF TEN DOLLARS PER LICENSE,
FOR CONTINUING EDUCATION CERTIFICATE FILING AND RECORDING CHARGES, TO
THE SUPERINTENDENT OR, AT THE DISCRETION OF THE SUPERINTENDENT, DIRECTLY
TO AN ORGANIZATION UNDER CONTRACT TO PROVIDE CONTINUING EDUCATION ADMIN-
ISTRATIVE SERVICES.
S 19. Section 2314 of the insurance law is amended to read as follows:
S 2314. Charging of rates. No authorized insurer [shall, and], no
licensed insurance agent, NO TITLE INSURANCE AGENT, no employee or other
representative of an authorized insurer, and no licensed insurance
broker shall knowingly, charge or demand a rate or receive a premium
which departs from the rates, rating plans, classifications, schedules,
S. 5923 12
rules and standards in effect on behalf of the insurer, or shall issue
or make any policy or contract involving a violation thereof.
S 20. Subsection (e) of section 2324 of the insurance law is amended
to read as follows:
(e) This section shall not apply to any policy or contract of reinsur-
ance nor to any contract or policy of life insurance, accident insurance
or health insurance which is subject to the provisions of section four
thousand two hundred twenty-four of this chapter, NOR TO ANY CONTRACT OR
POLICY OF TITLE INSURANCE, nor to any contract or policy of marine
insurance, other than contracts or policies of automobile insurance, or
of marine protection and indemnity insurance, nor to any insurance
contract, or rate of insurance in connection with any insurance contract
either against loss or damage to, or legal liability in connection with,
any property located wholly outside of this state or any activity
carried on outside of this state or any motor vehicle or aircraft prin-
cipally garaged and used outside of this state.
S 21. Subsection (d) of section 6409 of the insurance law is amended
to read as follows:
(d) No title insurance corporation OR TITLE INSURANCE AGENT, or any
other person acting for or on behalf of it, shall make any rebate of any
portion of the fee, premium or charge made, or pay or give to any appli-
cant for insurance, or to any person, firm, or corporation acting as
agent, representative, attorney, or employee of the owner, lessee, mort-
gagee or the prospective owner, lessee, or mortgagee of the real proper-
ty or any interest therein, either directly or indirectly, any commis-
sion, any part of its fees or charges, or any other consideration or
valuable thing, as an inducement for, or as compensation for, any title
insurance business. Any person or entity who accepts or receives such a
commission or rebate shall be subject to a penalty equal to the greater
of [one] FIVE thousand dollars or five times the amount [thereof] OF THE
REBATE, AND ANY PERSON OR ENTITY WHO OTHERWISE VIOLATES THIS SUB-SECTION
SHALL BE SUBJECT TO A PENALTY EQUAL TO THE GREATER OF FIVE THOUSAND
DOLLARS OR THE AMOUNT OF THE TITLE INSURANCE PREMIUM EARNED ON THE TRAN-
SACTION ON WHICH THE VIOLATION OCCURRED, EXCEPT, AS TO A TITLE INSURANCE
AGENT, SUCH SUM SHALL NOT INCLUDE THAT PORTION OF THE PREMIUM PAID OR
PAYABLE TO THE TITLE INSURANCE CORPORATION.
S 22. Subsection (a) of section 107 of the insurance law is amended by
adding a new paragraph 54 to read as follows:
(54) "TITLE INSURANCE AGENT" SHALL HAVE THE MEANING ASCRIBED TO IT BY
PARAGRAPH ONE OF SUBSECTION (Y) OF SECTION TWO THOUSAND ONE HUNDRED ONE
OF THIS CHAPTER.
S 23. This act shall take effect on the one hundred eightieth day
after it shall have become a law, provided, however, that effective
immediately:
(1) the addition, amendment and/or repeal of any rule or regulation
necessary for the implementation of this act on its effective date are
authorized and directed to be made and completed on or before such
effective date;
(2) the superintendent of financial services shall promulgate applica-
tion forms for persons, firms and corporations seeking to obtain a
license as a title insurance agent; and
(3) each person, firm or corporation who has filed an application for
a license as a title insurance agent on or before January 1, 2014 or
within 90 days after the superintendent of financial services has
promulgated application forms pursuant to this act, whichever date is
later, may act as such licensee without a license issued pursuant to
S. 5923 13
sections 2138, 2139, or 2140 of the insurance law until the superinten-
dent of financial services has made a final determination on the appli-
cation for such license filed by such person, firm or corporation.