ELANY Clarifies License Authority

Resident surplus lines brokers in Missouri, Montana and Florida applying for an excess line broker license in New York will not receive full license authority to write business in New York state because those states do not issue an unlimited license for New York resident licenses, according to a recent bulletin from ELANY.

Under Bulletin 2009-10 released on May 11, ELANY reviewed the state’s position regarding reciprocity and the issuance of “full” or “limited” non-resident excess/surplus lines broker licenses. The bulletin said that brokers from Florida and Montana will receive a limited license, which permits them only to write purchasing group business in New York.

New York will issue an unlimited license for Missouri licenses for individuals, however corporate entities will receive the limited license. In addition, while not limiting what they can write, the state will require a bond for California and Washington resident brokers because those states require a bond for New York resident brokers