What's happening
This bill allows increased registration fees and continuing education requirements for insurance business entity license renewals longer than 24 months, effective July 2021.
Why it matters
May increase costs for insurance businesses. By allowing proportional increases in registration fees for business entity license renewals longer than 24 months, the bill could raise operating costs for insurance agencies and brokerages choosing or required to renew for longer periods.
Potentially higher professional standards. Increased continuing education requirements for longer renewal periods could lead to higher professional standards, but may also impose additional time and resource burdens on businesses.
Temporary flexibility for regulators. The bill empowers the superintendent of financial services to set these new fee and education requirements only until July 1, 2023, signaling a temporary period of regulatory flexibility that may affect how businesses plan their renewals.
Delayed implementation timeline. The change pushes the effective date to July 2021 (from the originally scheduled July 2019), giving businesses and regulators more time to prepare for and adapt to these new rules.
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Who cares
Insurance agency businesses
Renewals covering more than 24 months could carry proportionally higher registration fees and continuing education requirements under regulations authorized before July 1, 2023.
Insurance brokerage businesses
The bill would delay the business-entity license renewal-date changes from July 1, 2019, to July 1, 2021, and permit proportional increases in fees and education requirements for extended renewal periods.
Superintendent of financial services
The bill would authorize regulations scaling business-entity renewal fees and continuing education requirements to license periods longer than 24 months.
Headline styles
Raise License Renewal Requirements
Plain English, a few words. Used as the page title.
Sponsors
No co-sponsors yet.
History
- Signed chap.200
- Delivered to governor
- Returned to senate
- Passed assembly
- Ordered to third reading rules cal.160
- Substituted for A7124
- Referred to insurance
- Delivered to assembly
- Passed senateVote 62–0
- Ordered to third reading cal.41
- Referred to rules
Companion bill
The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.
Raise License Renewal Requirements
Assembly Floor Calendar · Sponsor Kevin Cahill
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
2039
2019-2020 Regular Sessions
IN SENATE
January 18, 2019
Introduced by Sen. SEWARD -- read twice and ordered printed, and when printed to be committed to the Committee on Rules
AN ACT to amend the insurance law and a chapter of the laws of 2018 amending the insurance law relating to business entity license renewal dates, as proposed in legislative bills numbers S. 6445-A and A.
8484-A, in relation to registration fees and continuing education requirements for license renewal
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Paragraph 2 of subsection (j) of section 2103 of the insurance law, as amended by a chapter of the laws of 2018 amending the insurance law relating to business entity license renewal dates, as proposed in legislative bills numbers S. 6445-A and A. 8484-A, is amended to read as follows:
(2) Every license issued to a business entity pursuant to subsection (a) of this section shall expire on June thirtieth of odd numbered years. Every license issued to a business entity pursuant to subsection (b) of this section shall expire on June thirtieth of odd numbered years. On and after January first, two thousand seven, every license issued pursuant to this section to an individual, and every license in effect prior to January first, two thousand seven that was issued pursuant to this section to an individual, who was born in an odd numbered year, shall expire on the individual's birthday in each odd numbered year. On and after January first, two thousand seven, every license issued pursuant to this section to an individual, and every license in effect prior to January first, two thousand seven that was issued pursuant to this section to an individual, who was born in an even numbered year, 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. The superintendent may issue such rules and regulations as
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD07040-01-9
S. 2039 2
the superintendent deems necessary to implement the terms of this subsection including regulations providing that, prior to July first, two thousand twenty-three, the registration fees and continuing education requirements for the renewal of any license issued to a business entity pursuant to this subsection for a period that is more than twenty-four months may be increased in proportion to the length of the period of licensure.
§ 2. Paragraph 1 of subsection (g) of section 2104 of the insurance law, as amended by a chapter of the laws of 2018 amending the insurance law relating to business entity license renewal dates, as proposed in legislative bills numbers S. 6445-A and A. 8484-A, is amended to read as follows:
(1) Every insurance broker's license issued pursuant to this section to a business entity shall be for a term expiring on the thirtieth day of June of odd-numbered years. On and after January first, two thousand seven, every license issued pursuant to this section to an individual, and every license in effect prior to January first, two thousand seven that was issued pursuant to this section to an individual, who was born in an odd numbered year, shall expire on the individual's birthday in each odd numbered year. On and after January first, two thousand seven, every license issued pursuant to this section to an individual, and every license in effect prior to January first, two thousand seven that was issued pursuant to this section to an individual, who was born in an even numbered year, 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 section. 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. The superintendent may issue such rules and regulations as the superintendent deems necessary to implement the terms of this subsection including regulations providing that, prior to July first, two thousand twenty-three, the registration fees and continuing education requirements for the renewal of any license issued to a business entity pursuant to this subsection for a period that is more than twenty-four months may be increased in proportion to the length of the period of licensure.
§ 3. Section 3 of a chapter of the laws of 2018 amending the insurance law relating to business entity license renewal dates, as proposed in legislative bills numbers S. 6445-A and A. 8484-A, is amended to read as follows:
§ 3. This act shall take effect on July 1, [2019] 2021; effective immediately, the superintendent of financial services shall promulgate any rules and regulations necessary for the implementation of this act on or before such effective date.
§ 4. This act shall take effect on the same date and in the same manner as a chapter of the laws of 2018 amending the insurance law relating to business entity license renewal dates, as proposed in legislative bills numbers S. 6445-A and A. 8484-A, takes effect.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
Title of bill
An act to amend the insurance law and a chapter of the laws of 2018 amending the insurance law relating to business entity license renewal dates, as proposed in legislative bills numbers S. 6445-A and A. 8484-A, in relation to registration fees and continuing education requirements for license renewal
Purpose
This is a chapter amendment that makes changes to provisions of L.2018, c.402, to change the effective date and allow the Department of Finan- cial Services to promulgate regulations to facilitate the transition to standardized license renewal dates for business entities
Summary of provisions
Section 1 and Section 2 of the chapter amendment give the Superintendent of the Department of Financial Services the authority to issue regu- lations providing that, as part of the implementation of standardized business entity licensure renewal dates, the registration fees and continuing education requirements for the renewal of any license issued to a business entity that is more than twenty-four months may be increased in proportion to the length of the period of licensure.
Section 3 of the chapter amendment changes the effective date to July 1, 2021.
Existing law
Section 2103 of the insurance law governs renewal dates for licensing of insurance agents. Chapter 402 of the laws of 2018 standardized the dates for renewals of business entity licenses for insurance brokers to June thirtieth of odd-numbered years.
Justification
Concerns were raised about the implementation of the original bill. As the transition is made from license renewals on June 30th of odd-num- bered years, October 31st of even-numbered years, and June 30th of even- numbered years to one renewal on June 30th of odd-numbered years, some licenses will be renewed for periods longer than the normal twenty-four months. The chapter amendment allows the Department of Financial Services to increase licensure fees and continuing education require- ments during the transition period as needed in proportion to any longer licensure periods.
Legislative history
Chapter amendment to Chapter 402 of the Laws of 2018. S.6445-A and A.8484-A passed both the Senate and Assembly in June of 2018.
Fiscal implications
Unknown
Effective date
This act shall take effect on the same date and in the same manner as a chapter of the laws of 2018 amending the insurance law relating to busi- ness entity license renewal dates, as proposed in legislative bills numbers S. 6445-A and A. 8484-A, takes effect.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.