Insurance Regulation
What does section 2119 require before a licensee may take compensation by fee, rather than commission, for evaluating a policy?
Answer and explanation
Answer: D. Section 2119 conditions the fee on a written memorandum signed by the party to be charged, specifying or clearly defining the amount or extent of the compensation. An oral agreement, the insurer's approval and a filed fee schedule are not what the section requires.Source: N.Y. Ins. Law § 2119 — § 2119(a)
More insurance regulation questions
- A New York licensee is disciplined by the insurance regulator of another state. What must the licensee do?
- 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?
- 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?
- 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?
- 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?
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