Insurance Regulation
D30 days
How long does a licensee have to notify the Superintendent of a change of address? A60 days B90 days CImmediately D30 days
B40 (Correct! Single lines of authority require a minimum of 20 hours of prelicensing education; combination licenses require a minimum of 40 hours.)
A candidate for a life and health agent license would need to complete how many hours of prelicensing education? A20 B40 C50 D90
DThe application was processed without a valid license. (Incorrect! A temporary license may only be used to service existing business, not to solicit, negotiate or procure new business.)
A spouse was granted a temporary license for her deceased husband's agency on March 1. On May 1 she processed an application for life insurance on a new applicant. Which of the following is true? AThe application is not valid as submitted. BThe spouse's license had expired. CThe application is valid as submitted. DThe application was processed without a valid license.
BDisputes regarding consumer report information.
According to the Fair Credit Reporting Act, all of the following would be considered negative information about a consumer EXCEPT AFailure to pay off a loan. BDisputes regarding consumer report information. CTax delinquencies. DLate payments.
CNo, as long as the act is reported in good faith
According to the Insurance Frauds Prevention Act, will the person who suspects a fraudulent transaction be penalized for reporting it to the Superintendent? ANo; in no case may the person be penalized. BYes CNo, as long as the act is reported in good faith DEach person who reports to the Superintendent will receive a monetary reward.
DRebating.
Agent A offers a prospective client two tickets to a Yankees baseball game with the condition that the client will purchase a family life insurance policy. This practice is known as AControlled business. BReciprocal insurance. CConditional marketing. DRebating.
B15 days
How long does a licensee have to deliver information requested by the Superintendent of Financial Services? A10 days B15 days C25 days D30 days
AAn agent becomes disabled and is unable to complete his duties for the duration of the disability.
All of the following are reasons to terminate an agent's certificate of appointment EXCEPT AAn agent becomes disabled and is unable to complete his duties for the duration of the disability. BAn agent's license expires and is not renewed. CAn appointment is terminated by the insurer under the terms of agent's contract. DAn agent's license is suspended or revoked.
DReciprocity (Reciprocity occurs when the state in which the person resides accords the same privilege to residents of New York.)
An agent in another state wants to become an agent in New York. The other state gives the same privileges to New York agents wanting to be licensed in that state as it does its own agents. New York, therefore, extends the privileges of its agents to the prospective agent of the other state. What is this called? AEquality BFair exchange CEquanimity DReciprocity
BRebating.
An agent who gives special favors or advantages in dividends or other benefits is guilty of AMisrepresentation. BRebating. CTwisting. DDefamation.
DFair Credit Reporting Act
An applicant is denied insurance because of information found on a consumer report. Which of the following requires that the insurance company supply the applicant with the name and address of the consumer reporting company? AConsumer Privacy Act BConditional receipt CDisclosure rule DFair Credit Reporting Act
BA firm who acts on behalf of the insurer (An independent adjuster is any person, firm, association or corporation, who, for a commission, acts on behalf of an insurer in the work of investigating and adjusting claims.)
An independent adjuster may include which of the following? AAttorney at law BA firm who acts on behalf of the insurer COfficer, director or regular salaried employee of an insurer DAdjustment bureau or association owned by the insurers
BA person, firm or corporation.
An insurance broker's license may be issued to AOnly an individual or a corporation with officers named as sub-licensees. BA person, firm or corporation. CAnyone who can pass the written examination. DPersons age 17 or older.
BIllegal under any circumstances
An insurer publishes intimidating brochures that portray the insurer's competition as financially and professionally unstable. Which of the following best describes this act? ALegal, provided that the other insurers are paid royalties for the usage of their names BIllegal under any circumstances CLegal, provided that the information can be verified DIllegal until endorsed by the Guaranty Association
C$500 fine for each violation
Any New York agent that is found guilty of a violation of insurance licensing laws will be subject to which of the following penalties? AAutomatic license revocation B$5,000 fine for each violation C$500 fine for each violation DImprisonment for up to one year
AIn writing and signed by the Superintendent.
Before an order by the Superintendent can be considered effective, it must be AIn writing and signed by the Superintendent. BSigned by the Superintendent and submitted to the Governor for a 10-day waiting period. CSigned and dated by the Governor. DNotarized by a notary public and submitted to the Governor.
DBy their members - authorized insurers
How are state Insurance Guaranty Associations funded? ABy the Department of Insurance BBy NAIC CBy the Government DBy their members - authorized insurers
CSolvent.
Every insurance company in the state of New York must file annually with the office of the Superintendent to show that it is ACertified. BAuthorized. CSolvent. DAdmitted.
APolicyowners
For the protection of public interest, the Superintendent may examine the books and records of any of the following EXCEPT APolicyowners. BDomestic insurers. CFraternal benefit societies. DProducers.
CTo service the existing business
For which of the following reasons can a temporary license be issued? ATo negotiate new insurance contracts BTo provide temporary help to a licensed producer CTo service the existing business DTo solicit new business
D6 years
How long must insurers keep records of claims? A3 years B4 years C5 years D6 years
DEvery 2 years
How often must an insurance agent licensed in the state of New York renew the license? AEvery even-numbered year BEvery odd-numbered year CEvery birthday DEvery 2 years
C30 days.
If a certificate of appointment is terminated, a statement must be filed with the Superintendent within A15 days. B20 days. C30 days. D45 days.
D5 days
If a consumer requests additional information concerning an investigative consumer report, how long does the insurer or reporting agency have to comply? A7 days B10 days C3 days D5 days
A10 days
If a hearing is scheduled for a producer who has violated regulations regarding unfair trade practices, the Superintendent must send a prior notice within how many days of the hearing? A10 days B14 days C20 days D30 days
DEmbezzlement
If an agent fails to promptly remit the premiums collected from the insured to the insurer, the agent may be found guilty of which of the following? AControlled business BRebating CFraud DEmbezzlement
AAncestry.
If an insurance company wishes to order a consumer report on an applicant to assist in the underwriting process, and if a notice of insurance information practices has been provided, the report may contain all of the following information EXCEPT the applicant's AAncestry. BCredit history. CHabits. DPrior insurance.
DAt least 3 years
If compensation is authorized, it must be made in writing, including the amount of compensation and signed by the person to be charged. How long must a copy of this record be kept? AAt least 5 years BAt least 1 year CAt least 2 years DAt least 3 years
C30 days.
If licensees have administrative action taken against them, they must file this with the Superintendent within A50 days. B20 days. C30 days. D45 days.
CGovernor is in office.
In New York, the Superintendent is appointed by and stays in office for a term as long as the ABoard of Directors deems the term appropriate. BSecretary of State is in office. CGovernor is in office. DAttorney General is in office.
A5 years.
In addition to examinations that are specifically authorized by the Insurance Code, the Superintendent may examine each domestic life insurer as often as it is deemed necessary for the protection of the consumers. The Code requires examination of domestic life insurers every A5 years. B2 years. C3 years. D4 years.
DThe customer's associates, friends, and neighbors provide the report's data.
In comparison to consumer reports, which of the following describes a unique characteristic of investigative consumer reports? AThey provide additional information from an outside source about a particular risk. BThey provide information about a customer's character and reputation. CThe customer has no knowledge of this action. DThe customer's associates, friends, and neighbors provide the report's data.
AApply within 90 days of becoming a resident.
In order for a nonresident licensee to become a resident producer in New York, the licensee must AApply within 90 days of becoming a resident. BWait 6 months and close out all existing business. CFulfill New York's prelicensing requirements. DPass a written exam.
AApply within 90 days of becoming a resident. (If a licensed individual becomes a resident of New York, he or she must apply for a license within 90 days of becoming a legal resident, but does not have to fulfill prelicensing or examination requirements for lines of authority held in the previous state, unless the Superintendent determines otherwise.)
In order for a nonresident licensee to become a resident producer in New York, the licensee must AApply within 90 days of becoming a resident. BWait 6 months and close out all existing business. CFulfill New York's prelicensing requirements. DPass a written exam.
AThe entity must be part of the New York Labor Union.
In order to qualify for a certificate of authority, every person, firm, association, corporation or joint-stock company must meet all of the following requirements EXCEPT AThe entity must be part of the New York Labor Union. BThe entity must fully comply with all applicable provisions of New York's insurance laws. CIf a stock company, the amount of capital and surplus required by law must be paid in cash or investments. DIf a mutual company, provide statements of at least 3 incorporators, proof of the required initial surplus in cash or investments, and the required number and amount of actual applications for insurance.
AAn agent's retirement.
In this state a temporary license may be issued for all of the following reasons EXCEPT AAn agent's retirement. BThe death of an agent. CAn agent's disability. DAn agent's time in the military service
AIt is never legal to limit coverage based on marital status.
In which of the following situations is it legal to limit coverage based on marital status? AIt is never legal to limit coverage based on marital status. BExcessive number of divorces, as defined by the Insurance Code CLegal separation during the application process DDivorce within the last six months of applying for insurance
BFraud. (Fraud is the intentional misrepresentation or intentional concealment of a material fact used to induce another party to make or refrain from making a contract, or to deceive or cheat a party.)
Intentionally misrepresenting or concealing a material fact to induce an insurance company to make a contract is known as AConcealment. BFraud. CAvoidance. DMisrepresentation.
DMisrepresentation.
Question 7 of 15 An agent who includes a statement or omits a statement which, when taken in context of the whole presentation, may tend to mislead or deceive the persons addressed has committed ADefamation. BTwisting. CCoercion. DMisrepresentation.
DYes. The Superintendent has the power to make an investigation within this state or outside of the state.
Question 7 of 15 Can the Superintendent investigate fraudulent claims if they occurred outside of the resident's state according to the Insurance Fraud Prevention Act? AYes, but only if it is a violation of another state's insurance law. BNo. Because insurance is regulated by the state, all claims must occur within state boundaries. CNo. If fraudulent acts are believed to have been committed, the Superintendent must notify the state's Superintendent or Commissioner. It will then become a federal matter. DYes. The Superintendent has the power to make an investigation within this state or outside of the state.
CRegulates consumer reports.
The Federal Fair Credit Reporting Act ARegulates telemarketing. BPrevents money laundering. CRegulates consumer reports. DProtects customer privacy.
D3 years. (The Superintendent will make an examination of every authorized fraternal benefit society and property/casualty insurance company at least once every 3 years. Every domestic life insurer must be examined at least once every 5 years.)
The Superintendent can examine an authorized fraternal benefit society and property/casualty insurance company once every A5 years. B12 months. C18 months. D3 years.
AIs from another state.
The Superintendent may refuse to issue a license in all of the following situations EXCEPT if the proposed licensee AIs from another state. BHas not completed the prelicensing education. CIs not trustworthy. DIs not competent.
A12
The Superintendent may refuse to renew a license if a licensee is receiving more than 10% of the aggregate commissions from controlled business in how many months? A12 B15 C18 D24
C15% of the agent's annual commission is from business sold to the agent's family. (Controlled business is when an agent receives more than 10% of the aggregate commissions during a 12-month period from insurance business sold to family, or business associates and their family members.)
The Superintendent will not renew an agent or broker's license upon finding that the license has been used to write controlled business. Which of the following would be a violation of controlled business practices? A5% of the agent's annual commission is from policies sold to the agent's business associates. B40% of the agent's commission in the last month comes from business sold to friends and family members. C15% of the agent's annual commission is from business sold to the agent's family. D25% of the agent's commissions come from policies sold to one client.
CConsists of completing 15 hours of continuing education each biennium.
The continuing education (CE) requirement in this state: ACannot be extended or waived under any circumstances. BApplies to life, annuity, and accident and health licensees only. CConsists of completing 15 hours of continuing education each biennium. DAllows agents to carry over excess CE hours to the next licensing period as long as it's for the same license.
BFiduciary responsibility.
The requirement that agents must account for all insurance funds collected and are not permitted to commingle those funds with their own funds without the express consent of the insurance company is known as AAccepted accounting principal. BFiduciary responsibility. CPremium accountability. DFiscal responsibility.
DAll of the above.
Treatment of nonpublic personal financial information about individuals requires the insurer to do which of the following? AProvide notice to individuals about its privacy policies and practices, no later than at the time an insurance policy is delivered, and annually thereafter. BDescribe the conditions under which a licensee may disclose nonpublic personal financial information about individuals to affiliates and nonaffiliated third parties. CProvide methods for individuals to prevent a licensee from disclosing that information. An opt out notice must be provided to allow the consumer a choice to limit disclosure of personal information. DAll of the above.
BRespond to the consumer's complaint.
Under the Fair Credit Reporting Act, if a consumer challenges the accuracy of the information contained in a consumer or investigative report, the reporting agency must ASend an actual certified copy of the entire report to the consumer. BRespond to the consumer's complaint. CDefend the report if the agency feels it is accurate. DChange the report.
AMust be informed of the source of the report.
Under the Fair Credit Reporting Act, individuals rejected for insurance due to information contained in a consumer report AMust be informed of the source of the report. BAre entitled to obtain a copy of the report from the party who ordered it. CMust be advised that a copy of the report is available to anyone who requests it. DMay sue the reporting agency in order to get inaccurate data corrected.
C15 hours of approved instruction every 2 years
What are the continuing education requirements for licensed insurance agents in the state of New York? A30 hours of any insurance-related courses every 4 years B20 hours for life and heath agents and 25 hours for property and casualty brokers every 2 years C15 hours of approved instruction every 2 years D25 hours of instruction annually
CRebating
What is it called when an agent offers compensation to an applicant in exchange for business? AWaiver of premium BTwisting CRebating DFraud
A$5,000
What is the maximum fine for violating a cease and desist order? A$5,000 B$10,000 C$1,000 D$2,500
D$2,500
What is the maximum penalty for habitual willful noncompliance with the Fair Credit Reporting Act? A$1,000 B$100 per violation CRevocation of license D$2,500
CAt least 60 days before the license expires
When must agents submit license renewal applications to the Superintendent? AAt least 30 days before the anniversary of the day they received their licenses BWithin 10 business days of their birthdays CAt least 60 days before the license expires DBy the last day of February of every year
BMaking derogatory oral statements about another insurer's financial condition
Which of the following best describes the unfair trade practice of defamation? ARefusing to deal with other insurers BMaking derogatory oral statements about another insurer's financial condition CAssuming the name and identity of another person DIssuing false advertising material
DConsumer report
Which of the following includes information regarding a person's credit, character, reputation, and habits? AConsumer history BInsurability report CAgent's report DConsumer report
BA producer who owns his own field office.
Who is included in the definition of an agent? AAgents of title insurance companies. BA producer who owns his own field office. CA salaried employee of the insurer who does not solicit insurance or receive a commission DAn agent who devotes only 25% of his time to the solicitation of insurance contracts and does not receive commission
AA resident of New York wishing to transact business in New York (Incorrect! None of the above listed individuals must take and pass a written examination in New York to be licensed as an agent, except a New York resident wishing to act as an agent.)
Which of the following individuals must pass a written examination to be licensed as a life insurance agent? AA resident of New York wishing to transact business in New York BA nonresident licensee currently licensed in another state CAn individual seeking to be a representative of a fraternal benefit society as its agent DAn applicant who has a Chartered Life Underwriter (CLU) designation
AA producer previously licensed in New Jersey who is applying for a New York license 120 days after becoming a resident of this state (Each of the above do not need to take the written examination, except for a previously licensed agent in New Jersey who has allowed more than 90 days to lapse since becoming a resident of New York.)
Which of the following individuals must pass the written examination to be licensed as an insurance agent? AA producer previously licensed in New Jersey who is applying for a New York license 120 days after becoming a resident of this state BA nonresident licensee currently licensed in another state CA ticket-selling airline representative for one-time issuance of baggage or accident insurance DAn applicant who has passed the written examination for an insurance agent's license in the past if he applies within 2 years following the date of license termination
BHave a letter of recommendation attesting to the applicant's trustworthiness
Which of the following is NOT a qualification for licensing as an insurance producer in this state? ABe a state resident at the date of application BHave a letter of recommendation attesting to the applicant's trustworthiness CComplete the required minimum hours of prelicensing training DBe at least 18 years of age
DOral statements cannot be considered fraud.
Which of the following is NOT correct regarding false statements by a person engaged in the business of insurance? AOmissions of material fact on insurance applications are fraud. BFalse statements about the financial condition of an insurer are unlawful. CStatements made with the intent to deceive are unlawful. DOral statements cannot be considered fraud.
DIt helps insurers to not sell policies to those applicants who are high risks.
Which of the following is NOT true concerning the purpose of the Insurance Fraud Prevention Act? AIt permits the Department to receive assistance from federal and state law enforcement agencies. BIt permits the Superintendent and Department to investigate insurance fraud. CIt helps stop fraudulent acts more effectively. DIt helps insurers to not sell policies to those applicants who are high risks.
CCybersecurity Policy
Which of the following is an approved written document that identifies procedures in place to keep the insurer's Information System safe? APrivacy Disclosure BConsumer Report CCybersecurity Policy DCertificate of Coverage
AApplicants must be at least 18 years old.
Which of the following is true regarding licensing in the state of New York? AApplicants must be at least 18 years old. BApplicants must submit fingerprints. CApplicants must have a bachelor's or associate's degree. DApplicants do not have to take a prelicensing education course.
AThat its policies are covered by a state Guaranty Association (It is illegal for insurers to state that their policies are guaranteed by the existence of a Guaranty Association.)
Which of the following may NOT be included in an insurance company's advertisement? AThat its policies are covered by a state Guaranty Association BThe policies' limitations or exclusions CThe name of a specific agent DAn identification of a limited policy as a limited policy
AA licensed life insurance agent of the same insurer involved with the sale of the transaction (Only licensed agents of the same insurer who are involved with the actual transaction may share commissions.)
Which of the following may share in the commissions from the sale of a life insurance policy? AA licensed life insurance agent of the same insurer involved with the sale of the transaction BAn unlicensed trainee who is making a joint call with a licensed supervisor who closes the sale CAny licensed agent who helps to arrange the sale DA friend of the soliciting agent who is licensed with a different insurance company
BA person who negotiates insurance contracts
Which of the following persons is required to hold a producer license? AA person who administers employee benefits BA person who negotiates insurance contracts CA person who creates insurance advertisements DA person who takes messages related to claims
CThe Fair Credit Reporting Act
Which of the following protects consumers against the circulation of inaccurate or obsolete personal or financial information? AThe Guaranty Association BConsumer Privacy Act CThe Fair Credit Reporting Act DUnfair Trade Practices Law
AThe applicant must complete a minimum of 20 hours prelicensing training per line of authority.
Which of the following qualifications for obtaining a resident insurance agent's license in the state of New York is FALSE? AThe applicant must complete a minimum of 20 hours prelicensing training per line of authority. BThe applicant must have two letters of recommendation attesting to trustworthiness, reliability and good reputation. CThe applicant must be at least 18 years of age. DThe applicant must be a resident of the state of New York.
BConsumer report (Incorrect! Consumer reports include written and/or oral information regarding a consumer's credit, character, reputation, or habits collected by a reporting agency from employment records, credit reports, and other public sources.)
Which of the following reports will provide the underwriter with the information about an insurance applicant's credit? AAny federal report BConsumer report CInspection report DAgent's report
DDefamation
Which of the following terms describes making false statements about the financial condition of any insurer that are intended to injure any person engaged in the business of insurance? AUndercutting BTwisting CSlandering DDefamation
CDiscriminating in benefits and coverages based on the insured's habits and lifestyle
Which of the following will NOT be considered unfair discrimination by insurers? ACancelling individual coverage based on the insured's marital status BAssigning different risk classifications to applicants based on gender identity CDiscriminating in benefits and coverages based on the insured's habits and lifestyle DCharging applicants with similar health histories different premiums based on their ethnicity
CAn insurer's officer
Which of the following would NOT be considered an insurance producer? AA reinsurance intermediary BAn insurance agent CAn insurer's officer DAn insurance broker
AGiving a client a $20 pen with the insurer's logo during the insurance application process (Rebates include money, sharing of commissions, promises, inducements and personal services. Articles of merchandise with conspicuously stamped or printed advertisement of the insurer, agent or broker that do not exceed $25 in value are not considered rebates.)
Which of the following would NOT be considered rebating? AGiving a client a $20 pen with the insurer's logo during the insurance application process BSending a gift certificate to the insured's employee after the insurance has been effected as a thank you for the referral CSharing commission with the insured DCollecting a lower premium than what is specified in a policy as a token of client appreciation
CA salaried employee who advertises and solicits insurance (A person does not require an insurance producer license if he or she only advertises without intent to solicit insurance. However, once there is solicitation, a license is required.)
Which of the following would be required to be licensed as an insurance producer? AA salaried full-time employee who furnishes information for group insurance BAn insurance company director who performs executive, administrative and managerial duties CA salaried employee who advertises and solicits insurance DA person whose activities are limited to producing insurance advertisements
APublic adjuster (A public adjuster is any person, firm, association or corporation, who for a commission, acts on behalf of the insured in negotiating a settlement of a claim for loss or damage to property.)
Who represents the insured in the investigating of a claim? APublic adjuster BBroker CIndependent adjuster DAgent
A3 days (Incorrect! Investigative consumer reports cannot be made unless the consumer is advised in writing about the report within 3 days of the date the report was requested.)
Within how many days of requesting an investigative consumer report must an insurer notify the consumer in writing that the report will be obtained? A3 days B5 days C10 days D14 days
