New York Common Insurance Law

If, after a hearing, the Superintendent determines that a method of competition or a practice is unfair or deceptive, he or she may issue an order requiring a person to "cease and desist" from engaging in such a practice. Anyone who violates a cease and desist order may be subject to a penalty of up to $______ per violation.

$5,000

The Superintendent may suspend or revoke a producer's license for writing controlled business. "Controlled business" is defined as receiving more than _____% of commission in a 12-month period from insurance sold to a spouse, immediate family member, or business associate.

10%

A person convicted of violating the federal Fraud and False Statements Act may be fined and imprisoned up to ____ years and is prohibited from engaging in the insurance business in this state without the prior consent of the Superintendent.

15

All licensed agents, brokers, consultants, and public adjusters must complete ____ hours of approved continuing education every two years.

15

A non-resident licensee who moves to a new home state must have his or her new home state send a certification to the Superintendent within ____ days of his or her move.

30

A resident licensee must notify the Superintendent of a change of address, including an e-mail address, within ____ days of the change.

30

Licensees must report to the Superintendent any administrative action taken against them in another jurisdiction or by another governmental agency in this state within ____ days of the final disposition of the matter.

30

Pre-licensing education requirements have been established to ensure that candidates have a minimum level of knowledge about insurance and related New York laws and regulations. Candidates for a Life, Accident, and Health Agent's license must complete ____ hours of pre-license training.

40

The Superintendent must audit the books and records of every authorized domestic insurer at least once every ____ years.

5

The Superintendent may issue a temporary license for up to ______ months without an examination to the designee of a licensed producer entering the armed forces.

6

If a producer dies or becomes disabled, his or her surviving next of kin may obtain a temporary license in order to service his or her accounts without exam for up to ____ days.

90

An insurer that is domiciled in another country but is authorized to transact business in this state is known as an ________ insurer in this state.

Alien

To prove solvency, authorized insurers must file audited financial statements with the Superintendent:

Annually

Under the Consumer Privacy Regulation, no later than the time of policy delivery and _____________ thereafter, insurers must give insureds a notice explaining their privacy policies.

Annually

All of the following requirements must be satisfied in order to obtain a New York resident agent's license EXCEPT:

Apply for a license within one year of passing the exam

All licensed agents, brokers, consultants, and public adjusters must complete continuing education requirements on a __________ basis.

Biennial

The Entire Contract provision includes all of the following EXCEPT:

Changes made by the agent, if any

All of the following are true EXCEPT:

Commissions may only be paid to licensees whose home state is New York

"This policy is issued in consideration of the premium paid and the statements made on the application," is stated in which clause of a policy?

Consideration

Making false written or oral statements that are derogatory to the financial condition or that affects the solvency or financial standing of an insurer doing business in this state is an unfair and prohibited practice known as:

Defamation

When committed with such frequency as to constitute a general business practice, all of the following are violations of the Unfair Claims Settlement Practices regulations EXCEPT:

Denying a claim after conducting a reasonable investigation

Under the Producer Compensation Transparency regulation, if a customer wants to know the amount of commission that an agent will make on a sale, the agent should:

Disclose it

When ordering consumer investigative reports, insurers must comply with a federal law known as the:

Fair Credit Reporting Act

The Superintendent is the head of the New York Insurance Department and is appointed by the Governor for a ___- year term.

Four

An agent's fiduciary duties include which of the following?

Handling premiums

Something that increases the chance of loss is considered to be a(n):

Hazard

The authority that an agent has but that is not expressed in his or her contract is known as:

Implied

A misrepresentation by an insured will not void the policy unless it was:

Material

If a person resides in New Jersey but is licensed to act as an insurance producer in New York and maintains his or her principal place of business in New York, his or her home state is considered to be:

New York

Insurance policies are considered to be unilateral contracts because:

Only the insurer makes an enforceable promise

Advertising the differences in various insurance policies is:

Permitted if fair and accurate

The Superintendent may levy all of the following penalties for insurance fraud EXCEPT:

Probation

If the policy language is ambiguous, an insurer may elect to pay a claim based upon the Doctrine of:

Reasonable expectations

Under the Producer Compensation Transparency regulation, a producer selling an insurance contract shall disclose all of the following information to the purchaser orally or in a prominent writing at or prior to the time of application EXCEPT:

That the producer's most recent income statement is available for review

A producer's license is valid for:

Two years

In addition to a New York life insurance license, agents also need a FINRA securities license in order to sell:

Variable products

If the premium is not pre-paid, when is coverage effective?

When the policy is delivered and the premium is paid