BILL NUMBER: S8060
SPONSOR: BAILEY
 
TITLE OF BILL:
An act to amend the insurance law, in relation to consolidating the
licensing system for agents and brokers into a single producer license;
and to repeal certain provisions of such law related thereto
 
PURPOSE OR GENERAL IDEA OF BILL:
To consolidate the dual insurance licensing system for agents and
brokers into a single "producer" license to streamline regulatory
compliance, reduce costs, and align with national standards, while
retaining a separate insurance agent license for mortgage guaranty
insurance.
 
SUMMARY OF SPECIFIC PROVISIONS:
Section 1: Applies the annual study requirement applicable to insurance
agent examinations to producer exams going forward. This will ensure the
state evaluates various demographic factors and performance metrics,
focusing on equitable outcomes across examinees.
Sections 2 and 3: Redefines "insurance producer" to encompass previous
the roles of agents and brokers, ensuring that existing definitions and
duties under other provisions remain unchanged.
Section 4: Amends the existing section concerning insurance agent
licensing to narrow its application to insurance offered by mortgage
guaranty insurance agents and fraternal benefit societies, as this
legislation establishes a producer license, which will replace most
agent and all broker licenses.
Section 5: Amends the insurance broker licensing requirements to adapt
to the new producer designation, detailing licensing criteria and opera-
tional guidelines for producers, including responsibilities, types of
insurance covered, and the procedural aspects of licensure.
Sections 6-17: Makes conforming changes to various sections of the
insurance law to replace references to insurance agents and brokers with
insurance producers. This includes adjustments in licensing conditions,
the scope of authority, regulatory oversight, and specific operational
protocols for producers in different insurance sectors.
Section 18: Makes conforming changes to section 4236 of the insurance
law to allow for health insurance solicitation through producers.
Section 19: Makes a conforming change to section 6506 of the insurance
law to account for re-lettering of the subsections of section 2103.
 
JUSTIFICATION:
This legislation seeks to streamline the insurance licensing process by
consolidating the current dual-license system for agents and brokers
into a single "producer" license, as adopted by 48 other states and
three U.S. territories. This change will simplify regulatory compliance,
reduce administrative burdens, and lower costs for both licensees and
the regulatory body. By aligning with national trends, the legislation
promotes uniformity and clarity, reducing confusion among insurance
professionals and consumers. Moreover, the consolidated licensing struc-
ture enhances operational efficiency, supports market competitiveness,
and ensures better service delivery within the state's insurance indus-
try.
 
PRIOR LEGISLATIVE HISTORY:
New bill.
 
EFFECTIVE DATE:
January 1st following its enactment, with existing licenses remaining
valid under their original terms until expiration, after which renewals
will comply with this act's requirements.

Statutes affected:
S8060: 214 insurance law, 2103 insurance law, 2103(i) insurance law, 2103(j) insurance law, 2110 insurance law, 2110(f) insurance law, 2115 insurance law, 2115(a) insurance law, 2116 insurance law, 2129 insurance law, 2132 insurance law, 2132(c) insurance law, 2202 insurance law, 2202(b) insurance law, 4236 insurance law, 4236(f) insurance law, 4525 insurance law, 4525(c) insurance law, 6505 insurance law