WeVote
Log In

Bill

Bill

A 10987

Imposes standards for certain examination services

2025 Regular Session Introduced by Pamela Hunter

The bill requires a standardized written exam to prove competency for certain insurance licenses, with fees covering actual admin costs and NAIC-based standards.

ORDERED TO THIRD READING RULES CAL.242
0
WeVote Research Nonpartisan
Bill Summary · A 10987

Overview

A 10987 is a New York Assembly bill introduced by Assemblymember Pamela Hunter. The bill amends the Insurance Law to establish and enforce standards for examination services used to assess competency of individuals applying for certain insurance licenses.

Purpose and intent

  • To ensure that individuals seeking insurance licenses (and proposed sub-licensees) demonstrate competency through a standardized written examination.
  • To regulate the administration of these examinations, including cost, administration, and alignment with recognized professional standards.

Key provisions

  • Section 1, amendments to Section 2103(f)(1)(A)-(B):

    • The superintendent of insurance must require applicants to submit to a personal written examination and have them passed to determine competency for the license applied for.
    • Examinations shall be held at times and locations determined by the superintendent.
    • Applicants must pay an examination fee at the time of applying. The fee shall cover the actual documented administrative cost of conducting the qualifying examination, as certified by the superintendent. The fee is nonrefundable.
    • The superintendent may accept the results of a previously administered written examination if deemed equivalent to the current examination.
    • Organizations under contract to provide examination services must:
    • Develop, administer, and score examinations in accordance with standards and best practices established by the National Association of Insurance Commissioners (NAIC).
    • If the superintendent adopts a different standard by regulation, these organizations must comply with the adopted standard.

  • Section 2:

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

Who or what would be affected

  • Insurance license applicants (and proposed sub-licensees) requiring competency examinations.
  • Organizations under contract to provide examination services (testing vendors/administrators) responsible for developing, administering, and scoring the exams.
  • The New York Department of Financial Services (superintendent of insurance) responsible for setting times/places, determining equivalency of prior exams, certifying costs, and enforcing standards.
  • Potentially, license-issuing timelines and fee structures for examination administration.

Procedural and timeline aspects

  • Effective date: Immediate upon enactment.
  • Application scope: Applies to examinations conducted on or after the effective date.
  • Examination funding: Nonrefundable administration cost fees set by the superintendent, based on actual documented costs.
  • Standards alignment: Primarily aligned with NAIC standards and best practices; any regulator-imposed different standards would prevail for contracted examination providers.

Practical impact and considerations

  • Increased consistency and quality control in licensing exams, with a formal standard-setting role for the NAIC-based framework.
  • Clearer cost structure for applicants, tying exam fees to actual administrative costs.
  • Potential for standardized equivalency of prior exam results, reducing redundancy for certain applicants.
  • Examination vendors would need to align with evolving state-standard requirements and any future regulatory updates.

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

Sign in to ask a question.