A Life Accident & Health agent or broker is licensed to sell, solicit, or negotiate life insurance annuities and/or accident & health insurance.
Life insurance is insurance that provides protection against the death of an individual in the form of a payment to a beneficiary. An annuity is an agreement that the insurance company will pay an income benefit, in specified periodic payments, for the life of the insured or for a specified period. Accident and health insurance is insurance covering accidental death or personal injury by accident, sickness, ailment, or bodily injury.
A life agent or life broker may also be licensed to sell variable life and/or variable annuity products. The Agent or Broker must hold the life line of authority and must be registered with the Financial Industry Regulatory Authority (FINRA) and must furnish the FINRA CRD number.
Agent vs. Broker
A life, accident & health agent represents New York authorized companies for which he/she has been appointed. A company appointment is not required to obtain an agent license. However, a notice of appointment must be electronically submitted to the Department within fifteen (15) days from the date the agency contract is executed or the first insurance application is submitted.
A life broker represents the insured and can place business with any New York authorized company that will accept it. Some companies will only accept business from appointed agents.
Prelicensing Requirements
To qualify for a license, the licensing candidate must meet the following prelicensing requirements:
- Complete a Department approved prelicensing education course totaling not less than 40 hours of instruction for the life, accident & health authority or not less than 20 hours for either life only or accident & health only authority.
- Pass, within 2 years of applying for the license, the licensing exam administered by PSI Services.
- A candidate applying for variable life/variable annuities authority must provide proof of having passed FINRA series 6, 7, or 63.
Exceptions from the prelicensing requirements:
- A candidate for the agent license who holds the Chartered Life Underwriter or the Chartered Life Underwriter Associate designation may waive the education requirement and may take the Life and Health Laws and Regulations exam.
- A candidate for the broker license who holds the Chartered Life Underwriter designation, the Chartered Financial Consultant designation, or a Master of Science in Financial Services may waive the education requirement and may take the Life and Health Laws and Regulations exam.
- A candidate for the broker license may waive the education requirement if he/she was regularly employed by an insurance company, broker, or agent for a period of not less than one year during the last three years in responsible insurance duties relating to the use of life insurance, accident & health insurance, and annuity contracts in the design and administration of plans for estate conservation and distribution, employee benefits, and business continuation. A person serving with the Armed Forces may also qualify based on such experience if the one-year period of employment was during the three years next preceding his/her entry into the Armed Forces, and he/she applies within one year after discharge. The candidate must submit a signed and completed Statement of Employer with the license application.
Application Requirements
Match the submission code numbers listed under the Resident or Non-Resident columns with the corresponding numbers on the Submission Requirements Chart to determine what must be submitted with the license application.
Any required documentation must be uploaded on the license application.
Fees and Renewal Period
Licenses are issued for up to 2 years. Individual/tba licenses will be issued with an expiration date determined by the applicant’s date of birth:
- If born in an even-numbered year, the license will expire on the birthday in an even-numbered year.
- If born in an odd-numbered year, the license will expire on the birthday in an odd-numbered year.
All licensing fees are non-refundable. A full fee is charged when a license is issued for a licensing period of more than one year; a half fee is charged when a license is issued for a period of one year or less.
For New York residents, the full fee is $80, the half fee is $40.
Non-residents please see the Fee Schedules to determine the licensing fee.
Payment Options
Licensing fees may be paid by credit card, electronic funds transfer (e-check), or paper check. If electing to pay by paper check, the application will remain pending until the Department receives and processes the check.
There is a $20 fee for any e-check or paper check returned by the bank for insufficient funds.
Apply Online
To access the individual/tba adjuster application, visit NY LINX.
FAQs
Q: What is the difference between a life agent and a life broker?
A: A life agent represents authorized companies, while a life broker represents the insured and can place business with any authorized company.
Q: What are the prelicensing requirements for a license?
A: Prelicensing requirements include completing a Department-approved education course, passing the licensing exam, and providing proof of passing FINRA series 6, 7, or 63 for variable life/variable annuities authority.
Q: Are there any exceptions to the prelicensing requirements?
A: Exceptions may apply if the candidate holds specific designations or has relevant employment experience. Waivers may be granted for educational requirements in certain cases.
Q: How long are licenses issued for?
A: Licenses are issued for up to 2 years, with the expiration date determined by the applicant’s date of birth.
Q: What payment options are available for licensing fees?
A: Licensing fees can be paid by credit card, electronic funds transfer, or paper check. There is a fee for returned e-checks or paper checks with insufficient funds.
Conclusion
Obtaining a Life Accident & Health agent or broker license in New York involves meeting specific prelicensing requirements, submitting the necessary documents, and paying the appropriate fees. By understanding the distinction between an agent and a broker, candidates can choose the path that aligns with their goals and responsibilities. Whether applying online or through a paper application, individuals can pursue a career in the insurance industry and help clients secure the coverage they need.
