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Bill

S 9832

Imposes standards for certain examination services

2025 Regular Session Introduced by Jamaal Bailey

Imposes written, competency-based licensing exams with fees covering actual admin costs, administered by contracted providers under NAIC standards or Superintendent-approved equiva

REFERRED TO INSURANCE
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Bill Summary · S 9832

Summary of NY S.9832 (2025-2026) — Imposes Standards for Certain Examination Services

Purpose and Intent

  • This bill amends the New York Insurance Law to establish and clarify standards for how examination services are provided to insurance license applicants.
  • The core aim is to regulate examination administration, fees, and conformity with professional standards to determine the competency of applicants and proposed sub-licensees.

Key Provisions and Changes

  1. Examination Requirement and Competency Determination

    • The Superintendent of Insurance must require each applicant to submit to a personal written examination to determine competency for the license sought.
    • Examinations must be conducted at times and places determined by the Superintendent.

  2. Examination Fees

    • Applicants must pay an examination fee at the time of applying for the exam.
    • Fees are payable to the Superintendent or, at the Superintendent’s discretion, directly to a contracted examination service organization.
    • Fees must reflect the actual documented administrative cost of conducting the qualifying examination as certified by the Superintendent.
    • Examination fees are non-refundable and are not considered a refundable fee for administrative expenses.
    • The Superintendent may allow substitution by accepting the result of a previous written examination deemed equivalent to the current exam.

  3. Contracted Examination Services and Standards

    • Organizations under contract to provide examination services must:
      • Develop, administer, and score examinations in line with the standards and best practices of the National Association of Insurance Commissioners (NAIC).
      • If the Superintendent adopts a regulation that imposes a different standard, the contracted organization must comply with the adopted standard.

  4. Effective Date

    • The act takes effect immediately and applies to all examinations conducted on or after the effective date.

Who Is Affected

  • Applicants for Insurance Licenses: Individuals seeking licenses or sub-licenses must take the mandated examinations and pay the associated fees.
  • Examination Service Providers under Contract: Organizations contracted to administer and score these exams must adhere to NAIC standards (or any Superintendent-adopted alternative standard) and implement fees in line with actual administrative costs.
  • New York Superintendent of Insurance: Responsible for determining exam scheduling, setting or approving costs, and enforcing the standards and contract requirements.

Procedural and Timeline Considerations

  • Immediate Effect: The bill states an immediate effective date; it applies to all examinations conducted on or after that date.
  • Administration Timing: Examinations will be scheduled by the Superintendent, with locations and times determined as needed.
  • Fee Structure: Exam fees are established to cover actual administrative costs, non-refundable, and possibly payable to a contracted provider rather than directly to the Department, depending on the Superintendent’s discretion.

Notes for Readers

  • The bill aligns NY exam practices with NAIC standards, ensuring consistency across process, scoring, and quality controls, while allowing for regulation-specific deviations if the Superintendent adopts a different standard.
  • The non-refundable nature of fees emphasizes the administrative cost recovery model for examination services.

If you’d like, I can provide a brief side-by-side comparison with current law or draft a plain-language FAQ for license applicants.

Compiled from official sources — confirm details with the bill’s official record.

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