Anyone with a "LB" or "BR" License Cannot Receive Commission in NY.

Feb 12, 2016

  1. RayNY
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    Non-Resident License Application

    New York state has ruled that carriers may not appoint brokers with a "LB" or "BR" license, and therefore, cannot pay commissions.

    Certain carriers have begun sending notice that they will cease commissions unless you obtain an LA license or assign commissions to an agency with a LA.

    I've had an LB my entire career, many do. This has never been an issue in the past, but it appears carriers are looking for any loophole to stop paying comp.

    Between everyone under <200%FPL going to non-commissioned Essential Plans, to carriers pulling commission, and now carriers refusing to pay, I have lost literally all commission income for individual health insurance.
     
    RayNY, Feb 12, 2016
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  2. Tkruger
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    For those of us not in the know can you break out what an LB and BR license is?

    TIA
     
    Tkruger, Feb 12, 2016
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  3. AllenChicago
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    Ray, it's a good thing you were smart enough to diversify into other lines, back when Obamacare first started unraveling.

    Since the 1990's I've seen the state of New York do things against insurers & agents in order to "protect consumers", or give consumers more benefits. Did that law pass which forces health insurers to accept women, once they become pregnant?

    It's like Bernie Sanders has a twin brother.. and he's running New York's Dept of Insurance.
     
  4. houcoogster
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    Feel the bern..........................:twitchy:
     
  5. RayNY
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    BR is a Property and Casualty broker. It's understandable this license isn't valid for health purposes.

    LA is a Life/accident/health *agent*. It can also cover variable products.

    LB is a Life/accident/health *broker*

    They define the difference as "agent" being captive, serving a single company, and appointment is required for it to be active. A "broker" deals with multiple companies and serves their clients, and can be active even without an active appointment.

    Unless you're going for the variable part of the license, it's all the same. Same classroom, same test, same application process, same fees, same number. You just check off whether you want A or B.

    Law for LB: New York Insurance - Article 21 - § 2103 Insurance agents; licensing. :: 2014 New York Laws :: US Codes and Statutes :: US Law :: Justia

    Law for LA: 2104 - Insurance brokers; licensing. :: 2013 New York Consolidated Laws :: US Codes and Statutes :: US Law :: Justia

    Go ahead and read the first paragraph, an outline of what the licenses are. They accomplish the same thing, but DFS is saying that anyone with LB can't be paid for health specifically while they don't care about anything else (life, dental, etc)

    In their licensing system, LB's are now called "Life Brokers", when formerly it said "Life and/or Accident/Health Broker". LA's are "Life and/or Accident/Health Agent" and that's what it's always said.

    My printed LB license from when I re-certified clearly has "Life, Accident, and Health". Pulling it up today, it now just says "Life".
     
    RayNY, Feb 12, 2016
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  6. Tkruger
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    Thanks for that....NY has some screwy rules.
     
    Tkruger, Feb 12, 2016
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  7. RayNY
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    They do.

    The thing that bugs me is that most companies still honor the LB, and all of them have up until this month.

    Doesn't seem like the carriers just decided to do it, looks like DFS forced their hand, if the terminology changes on licenses are any indication of where it originated.
     
    RayNY, Feb 12, 2016
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