Sponsoring a new hire's New York P&C license, and keeping them after
Growing your own licensed CSR works. Losing them six months later is the risk.
To license a New York hire for property and casualty, they complete at least 90 hours of DFS-approved pre-licensing, pass the PSI exam, and apply to DFS ($80 for a license over a year). Until then they can only do ministerial office work, on salary, under supervision. Plan how you'll keep them: New York's Trapped at Work Act limits stay-or-pay repayment agreements.
The path to a NY P&C license
| Step | Detail |
|---|---|
| 1. Pre-licensing course | At least 90 hours from a DFS-approved provider |
| 2. Exam | PSI Services; must be passed within 2 years of applying |
| 3. Application | To DFS; $80 for a license over a year, $40 for a year or less |
| 4. Appointment | Each insurer files notice within 15 days of the agency contract or first application |
| 5. Continuing education | 15 credits per renewal once the license is over 2 years old |
What they can do before they're licensed
- Ministerial work only. Data entry, downloads, filing and other tasks a licensee delegates.
- Inside the office. No soliciting or taking applications from the public outside it.
- On salary. DFS opinions say no pay tied to business volume, not even gift cards.
- Under supervision. The licensee who delegates the work is accountable for it.
See New York CSR license requirements for the details.
Make the time work
- Set a target date for the course and the exam, and give study time in the work week.
- Pay for the course and exam up front, so cost isn't a reason to stall.
- Plan the licensed work they can't do yet, so it doesn't land on you.
Keeping them once they're licensed
A newly licensed CSR is worth more to every agency nearby. Many owners reach for a repayment clause. In New York, the Trapped at Work Act limits that. Law firms expect the amended law to take effect February 13, 2027, with a narrow carve-out for some transferable credentials. Get legal advice before you rely on one.
The steadier route is a reason to stay:
- A raise tied to the license, written into the offer.
- A clear next step, such as commercial lines or an account manager role.
- A fair workload. A new licensee buried in the old desk's backlog starts looking.
Free tool: score flight risk for a newly licensed hire, or anyone on your team. About 3 minutes.
Where Humai fits
While your hire studies, someone still has to do the licensed work. Humai matches U.S.-licensed agents who hold New York licenses, checked in NIPR, to cover it in your AMS under your name. Per task, part-time or full-time.
Questions agency owners ask
How long does a NY P&C license take?
The course is at least 90 hours. Add exam scheduling and DFS processing. The exam must be passed within 2 years of applying.
What can an unlicensed hire do while studying?
Ministerial tasks inside the office that a licensee delegates, under supervision. They can't solicit or negotiate, and DFS opinions say they can't get pay tied to business volume.
Can I make them repay the course if they leave?
Be careful. New York's Trapped at Work Act, amended in February 2026, limits agreements that make workers repay employer costs if they leave. Law firms expect the amended law to take effect February 13, 2027. Ask an employment lawyer before adding a repayment clause.
Should they take personal lines first?
If they'll work a personal lines desk, the 40-hour personal lines course is a faster start. Move them to P&C when they take on commercial work.
When do they need continuing education?
Once the license has been in effect for more than two years: 15 credits per renewal, including 1 hour of flood for P&C.
Sources
- NY DFS: Property and casualty agent and broker license
- NY DFS: Continuing education
- NY DFS OGC opinion 04-12-03 (unlicensed customer service staff)
- NY DFS OGC opinion 07-05-07 (pay for unlicensed staff)
- Holland & Knight: New York amends Trapped at Work Act (March 2026)
Licensing rules differ by state. This article is general information, not legal advice. Check with your state's department of insurance.