Excess Lines Association of New York (ELANY) Issues License Renewal Reminder for Excess Lines Brokers

Aug 9, 2012


On August 9, 2012 the Excess Line Association of New York issued Bulletin 2012-21 reminding Excess Line Brokers of upcoming license renewal requirements.  The Bulletin outlines pertinent information for both business entities and individual Excess Line licensees:

The Bulletin is reprinted below.


Business Entities:

All current excess line broker business entity licenses (corporation, LLC, or partnership) expire on October 31, 2012.  The New York State Department of Financial Services (DFS) will not be mailing any renewal license applications for 2012 license renewals.

You can now renew your Excess Line Broker License for the 2012 – 2014 licensing period by using the following link which is the method preferred by the DFS.

Click on http://www.dfs.ny.gov/insurance/licrenewal.htm to renew online.

If you have not already renewed your license, do so immediately to avoid delays in the processing of your affidavits and excess line documentation after November 1, 2012.  

Individual Excess Line Broker Licensees

Individual excess line broker licenses expire on the licensee’s birthday in even numbered years for individuals born in even numbered years and in odd numbered years for those born in odd numbered years.

A note of caution to individual excess line broker licensees:  If you operate your business as a corporation, partnership or LLC, the entity must be the licensee.

Do not use an Individual Excess Line Broker License to place business when an entity is selling, soliciting or negotiating insurance contracts, gets paid commissions and holds premium trust funds in its name. The entity must be licensed to be in compliance with New York law.

If the incorporated entity that employs you fails to obtain a business entity license and instead operates under your individual excess line broker’s license, you have violated the law because it is illegal to pay commission to an unlicensed person or entity.

The licensee must hold the premiums received in a premium trust account in its name and under its control.  The New York State Department of Financial Services has fined an individually licensed excess line broker $1,000 for acting as an insurance producer in the name of the corporation which was not licensed under any section of the NY Insurance Law. All current ELANY bulletins and other current ELANY publications can be found at  www.elany.org .