Insurance Regulation — New York exam
10% of the scored questions — about 10 of 100. This section is New York law, the part national study material covers least.
1 / 8
A licensed insurance consultant's brother is a vice-president of an authorized insurer. What does that mean for the consultant's advice?
Answer and explanation
Answer: D. Section 2107 bars a consultant from recommending a purchase from an authorized insurer in which a member of the consultant's immediate family holds an executive position. The bar is flat, so disclosure, waiving the fee, and surrendering the licence are not the remedies the statute provides.Source: N.Y. Ins. Law § 2107 — § 2107
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A licensed New York broker places marine coverage on an ocean-going vessel with an unauthorized insurer. How does section 2117 treat that placement?
Answer and explanation
Answer: C. Section 2117 excepts several placements by licensed brokers, among them reinsurance, property permanently located outside this state, marine insurance on shipments and ocean vessels, and certain out-of-state vehicle and aircraft liability. Marine coverage of that kind is inside the exception, so no waiver or individual approval is needed.Source: N.Y. Ins. Law § 2117 — § 2117
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A licensed producer married and now uses a different legal surname, not an assumed name. What does section 2102(f) require?
Answer and explanation
Answer: B. Section 2102(f) has two limbs: notify the superintendent on changing a legal name, and get prior approval for any name other than an individual licensee's own legal name. A change of legal name triggers the notice limb, not a new licence, a fresh approval, or silence.Source: N.Y. Ins. Law § 2102 — § 2102(f)
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A licensee proposes to give a consumer's nonpublic personal financial information to a nonaffiliated third party. What does Regulation 169 require first?
Answer and explanation
Answer: C. Regulation 169 requires the notice to a consumer before the licensee discloses nonpublic personal financial information to any nonaffiliated third party, unless the disclosure falls within the stated exceptions. A signed authorization, departmental approval and the third party's own licensure are not the rule's precondition.Source: New York Reg. 169, 11 NYCRR 420.4 — 11 NYCRR 420.4(a)(2)
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A New York licensee is disciplined by the insurance regulator of another state. What must the licensee do?
Answer and explanation
Answer: A. Section 2110(i) requires a licensee to report to the superintendent any administrative action taken against the licensee in another jurisdiction within thirty days of the final disposition of the matter. The duty is the licensee's, runs from final disposition rather than from first notice, and does not wait for renewal.Source: N.Y. Ins. Law § 2110 — 2110(i), Reporting administrative action
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A New York producer advises a client, submits her application, delivers the issued policy, and collects the first premium. Which of these acts is the sale under section 2101?
Answer and explanation
Answer: B. Section 2101(n) defines sell as exchanging a contract of insurance by any means, for money or its equivalent, on behalf of a licensed insurer, fraternal benefit society, or health maintenance organization, which is the premium-for-contract exchange. Advising is negotiation under (m), and neither submitting the application nor handing over the policy is itself the exchange.Source: N.Y. Ins. Law § 2101 — 2101(n), Sell
7 / 8
A nonresident New York licensee moves and the new residence becomes a different home state. What does section 2134 add to the change of address duty?
Answer and explanation
Answer: D. Section 2134 requires the licensee who changes home state to supply certification from the new home state inside the same thirty day window and charges no additional fee for it. A new application with fees, a lapse with re-examination, and a cancellation precondition are not part of the section.Source: N.Y. Ins. Law § 2134 — § 2134
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A person urges a New York resident to apply for a particular kind of insurance from a particular insurer. What is that under section 2101?
Answer and explanation
Answer: B. Section 2101(o) defines solicit as attempting to sell insurance or asking or urging a person to apply for a particular kind of insurance from a particular licensed insurer. Negotiation under (m) is conferring or advising about a particular contract, a sale under (n) is the exchange of a contract for money, and an appointment is the insurer's filing under 2112.Source: N.Y. Ins. Law § 2101 — 2101(o), Solicit
All 53 insurance regulation questions
- A producer does not repeat a rumour defaming an insurer, but persuades a colleague to spread it. How does section 2604 treat the producer?
- A producer wants to share part of a commission with an unlicensed friend who introduced the client. What does section 2102(e) say?
- A producer's home state licence was cancelled two months ago. Under section 2103(g)(11), may a nonresident New York licence still be issued without examination?
- A purchaser asks for the amount of the producer's compensation three weeks after the policy is issued. What does Regulation 194 require?
- A temporary licence has been issued after the death of an agent. What may the temporary licensee generally do with the agency's book of business?
- After notice, what is the person charged entitled to do in the hearings process under section 2405?
- Against what does New York measure its controlled business limit?
- An agent's brochure falsely advertises a line the insurer is not authorized to write in New York. Who may be answerable under section 2603?
- An insured asks a public adjuster whether the policy's exclusion is enforceable. What does section 2108 permit the adjuster to do?
- An insurer ignores the superintendent's request for information made during an investigation under section 2404. What follows?
- By what date must an insurer file the annual statement of condition on which section 307 solvency oversight rests?
- Does New York ever issue a producer license without a written examination?
- For how long is a business entity producer licence in New York renewed once it is in force?
- For how long must a licensee keep the memorandum recording compensation under section 2119?
- How do individual producer licenses expire in New York?
- How does New York distinguish an independent adjuster from a public adjuster?
- How long must an insurer keep the policy record that Regulation 152 requires for examination purposes?
- How many hours of prerequisite coursework does New York require before the life insurance examination?
- How much notice of a hearing must the superintendent give when serving a statement of charges under section 2405?
- On what basis does New York issue a nonresident producer licence under its reciprocity provision?
- On what basis may the New York superintendent refuse a license even where the applicant passed the examination?
- To whom does a licensed producer send a report of a suspected fraudulent insurance transaction under section 405?
- Under New York law, to whom may the superintendent issue an insurance consultant's license?
- Under section 2102(f), what must a New York licensee do before conducting business under an assumed name?
- What conduct does section 2604 prohibit with respect to another insurer?
- What controlled business limit does New York apply to a producer's license?
- What does New York's definition of negotiate cover?
- What does section 2119 require before a licensee may take compensation by fee, rather than commission, for evaluating a policy?
- What does section 307 additionally require a licensed insurer to file for solvency oversight?
- What false advertising does section 2603 forbid an insurance corporation or its agent to circulate in this state?
- What is a producer's home state under New York law?
- What is the general prohibition in section 2117 concerning unauthorized insurers?
- What must a producer disclose to the purchaser at or prior to application under Regulation 194?
- What penalty does section 2324 attach to each rebating violation?
- What power does section 2404 give the superintendent over a person suspected of an unfair trade practice?
- What turns one of the listed acts into an unfair claim settlement practice under section 2601?
- When may a licensee receive a share of the commission on insurance placed with a governmental entity under section 2128?
- When must a licensee give a customer the initial privacy notice required by Regulation 169?
- Where a business entity licence is issued to a firm or corporation in New York, who answers for its compliance with the insurance laws?
- Which circumstance supports the issue of a temporary insurance agent's licence in New York?
- Which conduct appears among the acts section 2601 lists as an unfair claim settlement practice?
- Which items does Regulation 152 treat as part of the policy record kept for examination?
- Whom does New York's definition of an insurance producer cover?
- Within what period must a New York licensee inform the superintendent of a change of address?
- Within what time must a person subject to section 405 report a transaction that appears to be fraudulent?
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