0813 Insurance - New York State Law Quiz
An agent is being investigated by the Superintendent of Insurance, who decides to hold a hearing in the matter. How many days advance notice is the agent entitled? A) 10 days B) 5 days C) 30 days D) 20 days
A) 10 days
Unless suspended or revoked, an agent or broker license is valid for: A) 2 years B) 1 year C) 3 years D) 4 years
A) 2 years
A licensee shall report to the Superintendent any administrative action taken against the licensee in another jurisdiction within: A) 30 days B) 15 days C) 10 days D) 20 days
A) 30 days
For a property and casualty insurance agent's license, the prelicensing education requirement is a minimum of: A) 90 hours of classroom work B) 30 hours of classroom work C) 40 hours of classroom work D) 120 hours of classroom work
A) 90 hours of classroom work
Which of the following gifts, given by a broker to her clients, is allowable under NY insurance law? A) A pen valued at $15.00, which includes the brokers name and address B) A gift card with a value of $50.00 C) A bouquet of flowers valued at $30.00 D) 4 tickets to the baseball world series
A) A pen valued at $15.00, which includes the brokers name and address
If the Superintendent of Insurance determine that any provision of the insurance law have been violated, he/she may: A) Automatically impose a fine of $500.00 for each offense B) Automatically impose a fine of $500.00 C) Impose a fine of $500.00 for each offense after a hearing has been held D) Impose a fine of no more than $500.00 after a hearing has been held
A) Automatically impose a fine of $500.00 for each offense
An agent's advertisement includes derogatory information about another insurance company. This is an example of: A) Defamation B) False advertising C) Twisting D) Creative commentary
A) Defamation
Under the rules of the New York Auto Insurance Plan (Assigned Risk), the assigned insurer must renew the coverage for a particular insured: A) For two consecutive years B) For three consecutive years C) For four consecutive years D) Until the insured can obtain other coverage
A) For two consecutive years
Which of the following is NOT an acceptable reason for an insurer to cancel a property insurance policy? A) Geographic location B) Non-payment of premium C) Physical damage in the covered property D) Fraud or material misrepresentation by the insured
A) Geographic location
A court would consider which of the following in determining a person's negligence? A) How a prudent person would have acted in the same situation B) How much insurance the person has C) How serious the injury D) How many times they have been sued in the past
A) How a prudent person would have acted in the same situation
A false statement contained in an insurance claim is a: A) Misdemeanor B) Financial Statement C) Felony D) Statutory requirement
A) Misdemeanor
Which property would not be eligible for coverage under the FAIR Plan? A) Motor Home B) Condominium C) Cooperative Housing D) Single-family Dwelling
A) Motor Home
An individual who is in the process of being licensed as an insurance broker may: A) Neither solicit nor placed business until fully licensed B) Place business but not solicit until fully licensed C) Solicit business but not place that business until fully licensed D) Solicit and place business if he is reasonably certain that he will receive his license with 90 days
A) Neither solicit nor placed business until fully licensed
Mrs. Rodriguez paid her broker a premium of $1,350.00 for her homeowner's policy, however, her broker Incompetent, Inc. failed to submit the payment to the insurer. Which of the following statements is true? A) Payment to Incompetent constitutes payment to the insurer. B) Because Incompetent never submitted the payment, Mrs. Rodriguez has no coverage C) Mrs. Rodriguez will now have to make a payment of $1,350.00 directly to the insurer and attempt to secure a refund of the $1,350.00 made to Incompetent D) The insurance broker will probably have his license revoked by the Insurance company.
A) Payment to Incompetent constitutes payment to the insurer.
The Superintendent has the authority to take all the following actions, except: A) Prescribe, withdraw, or amend the insurance laws of New York B) Issue licenses and certificates of authority C) Require the production of any documents deemed relevant to an inquiry D) Subpoena witnesses and compel their attendance at hearings.
A) Prescribe, withdraw, or amend the insurance laws of New York
A refund of all or part of a broker's commission to the insured as an inducement to write insurance is called: A) Rebating B) A return premium C) Marketing expense D) Permissible under the insurance law
A) Rebating
Each of the following is true about an "Independent Insurance Agent" except: A) The independent agent may represent insurers and insured's B) The agency agreement does not prohibit representing other insurers. C) An independent agent is not controlled by any one insurer. D) Upon termination of the agency relationship, the independent agent retains agency records and control of expiration.
A) The independent agent may represent insurers and insured's
Any person found guilty of violating a cease and desist order may be subject to a penalty of up to: A) $2,500 B) $5,000 C) $7,500 D) $10,000
B) $5,000
Licensees subject to continuing education requirements must satisfy how many credit hours? A) 24 credits for each biennial period B) 15 credits for each biennial period C) 18 credits for each biennial period D) 15 credits for each annual period
B) 15 credits for each biennial period
A "temporary license" is available to a spouse or legal representative of a deceased agent or broker. For how long is that license issued? A) 20 days B) 90 days C) 60 days D) 2 years
B) 90 days
All of the following are essential elements of negligence except: A) Legal duty B) A criminal act C) Proximate cause D) Injury has occurred
B) A criminal act
In addition to any other penalties provided by law, penalty for commingling is: A) A fine up to $250 for each violation B) A fine up to $500 for each violation C) A fine up to $750 for each violation D) A fine up to $1,000 for each violation
B) A fine up to $500 for each violation
Applicants for each of the following licenses are exempt from the examination requirement except: A) An applicant for a property and casualty license who has earned the CPCU designation. B) An applicant for an agent's license who intends to only represent mutual insurers C) An applicant seeking to represent a fraternal benefit society as its agent. D) An applicant for a license to sell travel accident and baggage insurance.
B) An applicant for an agent's license who intends to only represent mutual insurers
Which of the following payments may NOT be made from the bank account, which a Broker maintains for premiums? A) Premium payments B) Brokers' license fees C) Premium payments to other brokers D) Commissions payable to themselves
B) Brokers' license fees
Which of the following is NOT a duty of the Superintendent of Insurance? A) License agents and brokers B) Issue a "Certificate of Appointment" to an agent C) Examine insurers' financial operations D) Enforce insurance laws and regulations
B) Issue a "Certificate of Appointment" to an agent
With respect to the F.A.I.R. Plan, property must satisfy all the following EXCEPT: A) It must have an insurable risk B) It must have sustained a property loss C) It must be located in N.Y. State D) The insurance applicant must have made an unsuccessful effort to find coverage in the voluntary market.
B) It must have sustained a property loss
The Fair Credit Reporting Act does which of the following? A) It makes the disclosure of the source of information illegal B) It requires the insurance company to notify an applicant in advance that an inspection report may be obtained C) It prevents insurance companies from using information that is disputed by the applicant D) It requires the insurance companies to send all applicants copies of any reports obtained from an inspection company
B) It requires the insurance company to notify an applicant in advance that an inspection report may be obtained
An insurance brokers license gives the licensees authority to transact every kind of insurance EXCEPT: A) Workers' Compensation B) Life insurance and annuities C) Disability insurance D) Auto insurance
B) Life insurance and annuities
A broker gives a prospective insured a gas card valued at $35,00 in return for the purchase of an insurance policy from their agency. The broker is guilty of which of the following? A) Twisting B) Rebating C) Coercion D) Defamtion
B) Rebating
Which of the following would be considered an illegal marketing practice? A) Sending a birthday card to a client B) Replacing a client's all risk policy with a named perils policy C) Replacing a client's named perils policy with an all risk policy D) Providing promotional gifts of $25 or less in value
B) Replacing a client's all risk policy with a named perils policy
Which of the following statements, regarding an independent insurance agent is/are true? A) They are not eligible for a broker's license B) They may represent several insurers simultaneously C) They represent both the insurer and insured D) They may place business with an insurance company that has not appointed them as an agent
B) They may represent several insurers simultaneously
In New York the insurance Superintendent has all the following duties, EXCEPT: A) Limit insurer risk retention B) Write and pass insurance law C) Examine insurers' financial operations D) License agents and brokers
B) Write and pass insurance law
Under the NYAIP the limit of coverage for physical damage to the insured's own vehicle is: A) $25,000 B) $35,000 C) $50,000 D) None of the above
C) $50,000
Producers found guilty of commingling are subject to a fine of up to: A) $5,000 maximum at one hearing B) $250 per violation C) $500 per violation D) $5,000 maximum at one hearing
C) $500 per violation
Licensees subject to continuing education requirements must satisfy how many credit hours? A) 15 credits for each annual period B) 8 credits for each biennial period C) 15 credits for each biennial period D) 24 credits for each biennial period
C) 15 credits for each biennial period
Which of the following would be a violation of insurance law? A) A broker sharing commissions with another broker who helped place the business B) A broker charging fees for their services C) A broker paying finders fees to their telephone solicitor D) A trip awarded to an agent by their company for meeting production requirements
C) A broker paying finders fees to their telephone solicitor
All the following are required to be licensed, EXCEPT: A) Sublicensee B) Broker C) Customer Service Representative D) Agent
C) Customer Service Representative
Which type of authority does an insurer give to its agent by means of the agents contract? A) Apparent B) Implied C) Expressed D) General
C) Expressed
An insurance brokers license may only be issued to a person who: A) Has been previously employed in the insurance industry B) Is at least 21 years of age C) Is 18 years of age or older D) None of the above
C) Is 18 years of age or older
Which of the following, if any, would be considered rebating? I. Giving stock or securities in return for purchasing the policy II. Sharing commissions with a broker who helped negotiate the insurance A) Both I and II B) Only II C) Only I D) Neither I nor II
C) Only I
A broker's license is a requirement for an agent who: A) Shares in a sale with another agent B) Places a policy with the NYAIP C) Places an insurance policy with a different insurance company other than the one(s) with which they are under contract.
C) Places an insurance policy with a different insurance
An agent gives a prospective insured, 2 tickets to the World Series in return for the purchase of an insurance policy from their agency. The agent is guilty of which of the following? A) Defamation B) Twisting C) Rebating D) Coercion
C) Rebating
Which of the following summarizes the expenses paid by the insured for an excess lines placement? A) Export list B) Affidavit C) Total Cost Form D) Disclosure form
C) Total Cost Form
At any one hearing, the maximum fine which may be imposed upon a producer, by the Superintendent of Insurance is: A) $500.00 B) $1,000.00 C) $5,000.00 D) $2,500.00
D) $2,500.00
The Superintendent may refuse to issue a license or renewal if the "Controlled Business" exceeds: A) There is no limitation B) 20% of their total net annual commission C) 30% of their total net annual commission D) 10% of their total net annual commission
D) 10% of their total net annual commission
A violation of a provision of the insurance law may result: A) Criminal penalties B) Civil penalties C) Penalties imposed by the Superintendent of insurance D) All of the above
D) All of the above
The Superintendent may revoke an agent's or broker's license for: A) Incompetency B) A violation of the NYS insurance law C) Material misstatement on the license application D) All of the above
D) All of the above
An insurance broker has which of the following obligations to the insurance companies with which she does business: A) To supply necessary underwriting information B) To send all premiums to the insurer promptly C) To represent the insurer in a courteous efficient manner D) All the above
D) All the above
In order to conduct business in New York State, an excess lines broker must: A) Pay a license fee B) May be required to post a bond or equivalent security C) Be licensed as a Broker D) All the above
D) All the above
A person who makes a derogatory statement about an insurer is guilty of: A) Illegal inducement B) Coercion C) Discrimination D) Defamation
D) Defamation
The Superintendent may revoke or suspend the license of a broker or agent for any of the following reasons, EXCEPT: A) Misappropriated any funds B) Intentionally withheld material information in the license application C) Attempt to obtain a license by fraud D) Deposit personal funds in their premium account to maintain an adequate balance
D) Deposit personal funds in their premium account to maintain an adequate balance
How often must Domestic insurance companies file for review of their records? A) Every year B) There is no set time C) Every two years D) Every three years
D) Every three years
Cash received by a Broker in payment of premium: A) Must be deposited in the Broker's personal account B) Must be returned to the insured and a check requested C) May not be accepted by a broker D) Must be deposited to the premium account
D) Must be deposited to the premium account
It is permissible for an insurance broker to pay operating expenses from monies in the premium account when: A) He/she makes certain that all premiums due has been paid in a timely fashion B) An insured's check to the broker is dishonored C) He/she deposited more than enough money into the premium account to pay all premiums due D) None of the above
D) None of the above
It is permissible for an insurance broker to pay operating expenses from monies in the premium account when: A) An insured's check to the broker is dishonored. B) He has deposited more than enough money into the premium account to pay all premiums due. C) He makes certain that all premiums due have been paid in a timely fashion. D) None of the above.
D) None of the above.
An Agent gives a prospective insured 2 tickets to the World Series in return for the purchase of an insurance policy from their agency. The Agent is guilty of which of the following? A) Twisting B) Coercion C) Defamation D) Rebating
D) Rebating
Material misrepresentation in the application for an agents' license means: A) The licensee must take the pre-licensing education course again B) The licensee must file another application with the correct information C) The licensee must file a $25,000 bond D) The license may be revoked or suspended
D) The license may be revoked or suspended
The following coverages are available in the N.Y.P.I.U.A. EXCEPT: A) VMM B) Windstorm C) Fire D) Theft
D) Theft
An individual nonresident licensed to act as an agent or broker in their home state, would received a NY non-resident license without taking a written exam in all the following situations, EXCEPT: A) They are in good standing in their home state B) They have submitted a completed application C) They have paid the appropriate feeds D) There is no reciprocity with NY residents
D) There is no reciprocity with NY residents
An individual nonresident licensed to act as an Agent or Broker in their home state, would receive a NY non-resident license without taking a written exam in all the following situation, except: A) They are in good standing in their home state B) They have paid the appropriate fees C) They have submitted a completed applicaton D) They is no reciprocity with NY residents
D) They is no reciprocity with NY residents
