Jun 20, 2018

NYDFS modifies broker license to reflect accident and health authority

For years, producers with New York state brokers licenses have been faced with the unwelcome task of proving they are permitted to sell accident and health insurance under their broker’s licenses, despite clear authority in New York State Insurance Law.

New York State Insurance Law Section 2104(b)(1)(B) clearly states by virtue of holding a broker’s license, a producer is licensed to transact “any and every line of authority, except life insurance and variable life and variable annuity products.” That authority was not clearly indicated on the license itself.

Because of this, many carriers asked brokers to prove they had the authority. In order to clear things up, the New York State Department of Financial Services has modified the language that appears on broker’s licenses to read: “An insurance broker with the property/casualty lines is authorized to act as such with respect to any and every line of authority except life insurance and variable life and variable annuity insurance.”

This change went into effect last month and the revised language will appear on all new and renewed brokers’ licenses going forward.