Jun 20, 2018

PIANY top-priority bills pass state Legislature

PIANY scored major legislative victories this session for its members as two of its top bills passed in the state Legislature this month:

PIA priority legislation that would standardize business-entity license renewal dates passes Assembly. A bill, A.8484-A/S.6445, championed by PIANY would establish June 30 of odd-numbered years as the one common expiration date for all business-entity licenses has passed the state Senate unopposed (62-0).

Under current Insurance Law, insurance producers licensed as business entities can have up to three different dates on which they must renew their business licenses.

Business entities licensed as an agent to write life insurance have a two-year license term that expires on June 30 of odd-numbered years. Business entities licensed as agents to write property/casualty lines have a two-year license term that expires on June 30 of even-numbered years. Business entities licensed as insurance brokers for both p/c lines and life lines have a two-year term that expires on Oct. 31 of even-numbered years.

Many business entities that sell insurance are licensed for all lines of insurance and are licensed as both agents and brokers. Therefore, the businesses must adhere to the three different licensing terms.

There is no specific rationale for having three different dates, and having one date would make business-entity licensing and renewal much simpler for businesses.

This bill, sponsored by Assemblyman Kevin Cahill, D-103, would establish June 30 of odd-numbered years as the one common expiration date for all business-entity licenses. The bill previously passed the Assembly and will now be sent to the governor for his signature.

Prelicensing coursework bill passed the state Senate. A second victory was achieved last week when a bill, (S.7634-A/A.9527-A), to make it easier to complete prelicensing coursework passed the state Senate June 18. PIANY has met with legislators to emphasize the importance of this bill to its members throughout the session.

Under current statute, p/c prelicensing coursework may only be taken in classroom format. This restriction presents a hardship for those in rural communities who want to be licensed to sell p/c insurance due to the cost of traveling and overnight accommodations during the week-long course. This bill, sponsored by Sen. Kathleen A. Marchione, R-43, and Assemblywoman Carrie Woerner, D-113, would ensure that prelicensing courses for all forms of insurance are offered in both classroom and correspondence/distance learning formats. The bill, which passed the state Assembly earlier this month, will be returned to that chamber for consideration of Senate amendments.