New York insurance agent vs. broker license: which should your staff hold?
Same exam, same fee. The difference is who the licensee works for.
In New York, a property and casualty agent represents the insurers that appoint them. A broker represents the insured and can place business with any authorized insurer that will accept it. Both take the same PSI exam and pay the same $80 fee. A broker candidate can waive the 90-hour course with one year of qualifying insurance work in the last three years.
Agent vs. broker at a glance
| P&C agent | P&C broker | |
|---|---|---|
| Represents | The insurers that appoint them | The insured |
| Places with | Appointing insurers | Any NY-authorized insurer that will accept the business |
| Appointment | Insurer files notice within 15 days of contract or first application | None; brokers act for the insured, not under an appointment |
| Pre-licensing | 90 hours P&C, 40 hours personal lines | Same, or waived with 1 year of qualifying work in the last 3 |
| Exam | PSI, passed within 2 years of applying | Same |
| Fee | $80 for a license over a year | Same |
| Term | Up to 2 years, ending on the birthday | Same |
Which to require when you hire
CSR or account manager working your carrier appointments
An agent license fits. Your carriers appoint them, and they work within those appointments.
Staff placing business for clients across many markets
A broker license may fit better, since a broker acts for the client and isn't tied to appointments.
An experienced unlicensed hire
Someone with a year of qualifying insurance work in the last three years may be able to skip the 90-hour course for a broker license. You'd sign a Statement of Employer for them.
Free tool: paste your job post and create an interview pack that checks the right license for the role. About 3 minutes.
Disclosure rules apply to both
Regulation 194 requires producers to tell a purchaser their role in the sale and how they're paid. If the purchaser asks, the producer must give more detail on compensation. Train new staff on this before they talk to clients.
Where Humai fits
Humai matches U.S.-licensed agents who hold New York licenses, checked in NIPR, to work in your AMS under your agency's name. Tell us the lines and the work, and we'll match the right license.
Questions agency owners ask
What's the difference between an agent and a broker in New York?
An agent acts for the insurers that appoint them. A broker acts for the insured and can place coverage with any New York-authorized insurer that will accept it.
Do agents need an appointment?
The license doesn't need one, but the insurer must file a notice of appointment within 15 days of the agency contract or the first application, whichever comes first.
Is the broker license harder to get?
No. The exam and fee are the same. A broker candidate can waive pre-licensing education with one year of qualifying insurance employment in the last three years, backed by a signed Statement of Employer.
Which license should a CSR at an independent agency hold?
It depends on how your agency places business. If you place through carrier appointments, an agent license fits. If you act for clients and place with many markets, a broker license may fit.
Do both have to disclose compensation?
Yes. Under Regulation 194, an insurance producer must give a purchaser an initial disclosure about their role and how they're paid, and give more detail if asked.
Sources
- NY DFS: Property and casualty agent and broker license
- NY DFS: Statement of Employer (P&C broker)
- NY DFS: FAQs about Regulation 194 (producer disclosures)
- NY Insurance Law § 2102 (license required)
Licensing rules differ by state. This article is general information, not legal advice. Check with your state's department of insurance.