Insurance Regulation
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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