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.

53 practice questions below · 70 of 100 needed to pass overall

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
2 / 8

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
3 / 8

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)
4 / 8

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
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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

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Other New York topics: General Insurance · Life Insurance Basics · Life Insurance Policies · Life Insurance Policy Provisions, Options, and Riders · Annuities · Federal Tax Considerations for Life Insurance and Annuities · Qualified Plans · Life Settlement

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