Insurance Law §2118 defines a retail broker as the “producing broker” in a transaction where coverage is placed by a wholesale excess line broker.
Producing brokers must hold a resident or nonresident New York broker license with a (BR) prefix to place/obtain insurance through an excess line broker. New York agent licenses with a (PC) prefix cannot be used to place/obtain coverage through excess line brokers.
If the producing broker is a corporation or entity, the license should be in the entity’s name. If the producing broker uses a trade name or does business under “D/B/A,” the full name of the license and trade name or “D/B/A” should be reflected in the Part C affidavit.
Agents holding (PC) licenses can easily apply for a broker license (BR) through the Department of Financial Services’ online licensing system.
ELANY verifies all producing broker licenses during its examination process and maintains a listing of broker licenses through its online Part C affidavit system. All producing brokers are encouraged to use this system and can easily sign up by contacting the ELANY Help Desk at (646) 805-1200 or via email at elanyhelpdesk@elany.org .
All excess line brokers are encouraged to verify that they are placing coverage only on behalf of New York licensed brokers to avoid inadvertent violations of the law.
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ELANY DISCLAIMER:
This is not intended to be nor should it be construed as legal advice. Consult with your own legal counsel.
Last revised: October 31, 2024