NYS LAW

Failure to pay fine within _______ by Superintendent, license may be revoked or suspended

20 days

If the office of the Superintendent is vacant for more than ________, the governor may appointment a deputy during his absence

30 days

The licensee must report change of address within _______

30 days

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

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

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) Misdemanor B)FInancial Statement C)Felony D) Statutory requirement

A) Misdemanor

A refund of all or part of a brokers commission to the insured as an inducement to write insurance is called: A) Rebating B) Return Premium C)Marketing expense D)Permissible under the insurance law

A) Rebating

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 indicates the brokers name and address B) a gift card with a value of $50 C)A bouquet of flowers valued at $30 D)4 tickets to the world series

A)A pen valued at $15.00, which indicates the brokers name and address

An individual who is in the process of being licensed as an insurance broker may: A)Niether solicit nor place business until fully licensed B)Place business but not solicit until fully licensed C)Solicit business but not place business until fully licensed D) Solicit and place business if he is reasonably certain that he will receive his license with 90 days

A)Niether solicit nor place business until fully licensed

A temprorary license is available to a spouse or legal representative of a deceased agent or broker. For how long is that license issued? A)30 days B) 90 days C)60 days D)2 years

B) 90 days

In addition to any other penalties provided by law, penalty for commingling is: A) Illegal inducement B) A fine up too $500 for each violation C) A fine up to $750 for each violation D)A fine up too $1,000 for each violation

B) A fine up too $500 for each violation

All of the following may be exempt from the state examination requirements except: A)An applicant who has earned the CPCU designation B)An applicant for a brokers license C) An applicant for a license to sell baggage and accident insurance in conjuction with ticket sales of a common carrier D) An applicant seeking to represent a Fraternial Benefits society as an agent

B) An applicant for a brokers license

With respect to the F.A.I.R. Plan, property must satisfy all of the following expect: 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 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 applicant copies of any reports obtained from an inspection agency

B) It requires the insurance company to notify an applicant in advance that an inspection report may be obtained

A broker gives a prospective insured a gas card value 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) Defamation

B) Rebating

In New York the insurance Superintendent has all of the following duties except: A) Limit insurers risk retention B) Write and pass insurance law C) Examine insurer's financial operations D)License agents and brokers

B) Write and pass insurance law

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

License subjects 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) 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) A broker paying finders fees to their telephone solicitor D)A trip awarded by there company for meeting production requirements

C) A broker paying finders fees to their telephone solicitor

All the following are required to be licensed expect: A)Sublicensee B)Broker C) Customer service representative D)Agent

C) Customer service representative

If the Superintendent of Insurance determines that any provisions 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 C) Impose a fine of $500 for each offense after a hearing has been held D)Impose a fine of not more than $500 after a hearing has been held

C) Impose a fine of $500 for each offense after a hearing has been held

When all certificate of appointments for an agent have been terminated, the agents license becomes: A) Suspended B) Revoked C)Inactive D)Non-renewed

C) Inactive

Which of the following, if any, would be considered rebating? I. Giving stock or securities in return for purchasing a policy II. Sharing commissions with a broker who helped negoigate the insurance A)Both I and II B)Only II C) Only I D) None

C) Only I

A brokers license is a requirement for an agent who: A) Shares in a sale with another agent B)Places a policy in the NYAIP C) Places an insurance policy with a difference insurance company other than the one (s) which they are under contract D) Shares in a sale with another agent

C) Places an insurance policy with a difference insurance company other than the one (s) which they are under contract

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

An insurance broker license may only be issued to a person who: A) Has been previously employed in the insurance industry B)Is at least 21 years or older C)Is 18 years or older D) None of the above

C)Is 18 years or older

The Superintendent may remove an agent's or brokers 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

Cash received by a broker in payment of premium A) Must be deposited in the broker personal account B) Must be returned to the insured and a check requested C) May not be requested 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 the 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 of the premiums due D) None of the above

D) None of the above

When a personal umbrella policy covers a loss that is not covered by the underlying policy, coverage a begins after a: A)Equal shares limit B) Coinsurance limit C)Pro-rata limit D) Self-retention limit

D) Self-retention limit

Material misrepresentation in the application for an agents license means: A) The licensee must take pre-licensing education course again B)The license must file another application with the correct information C)The license 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

A violation of a provision of the insurance law may result: A) Criminal Penalties B)Civil Penalites C)Penalties imposed by the superintendent of insurance D) all of the above

D) all of the above

Failure to comply with the Superintendents cease and desist order may cause a penalty of up too how much? A)$250 B)500 C)$2,500 D)$5,000

D)$5,000

The superintendent may refuse to issue a license or renewal if the "Controlled Business" exceeds: A) There is no limitation B)20% of there total net annual commission C) 30% of there total net annual commission D)10% of there total net annual commision

D)10% of there total net annual commision

A person who makes untrue and derogatory statement about an insurer is guilty of: A) Illegal inducement B) Coercion C)Discrimination D)Defamation

D)Defamation

Who appoints the Superintendent of Insurance?

Governor

A person or firm who acts on behalf of the insurance company during a claim

Independent Adjuster

A person or firm who acts on behalf of the insured during a claim

Public Adjuster

The systematic denial of various services to residents of specific, often racially associated, neighborhoods or communities, either directly or through the selective raising of prices.

Redlining

Unless suspended or revoked, an agent or broker licensee is valid for a) 2 years b) 1 year c)3 years d)4 years

a) 2 years

A license shall report to the superintendent any administrative action taken against the licensee in another jurisdiction a)30 days b)15 days c)10 days d)20 days

a)30 days

For a property and casualty insurance agent license, the prelicensing education requirement is a minimum of a)90 hours of classwork b)30 hours of classwork c)40 hours of classwork d)120 hours of classwork

a)90 hours of classwork

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 fraud or material misrepresenatation of the insured

a)geographic location

An insurance brokers license gives the licensee authority to transact every kind of insurance expect a) workers compensation b) life insurance and annuities c) disability insurance d) auto insurance

b) life insurance and annuities

Which of the following would be considered an illegal marketing practice a) sending a birthday card to a client b) replacing a clients all risk policy with a named peril policy c) replacing a clients named perils policy with an all risk policy d) providing promotional gifts of $25 or less in value

b) replacing a clients all risk policy with a named peril policy

Which of the following is not a duty of the superintendent of insurance a)license agent and brokers b)issue a certificate of appointment to an agent c) examine insurers financial operations d)enforce insurance laws and regulation

b)issue a certificate of appointment to an agent

Which of the following statements, regarding an independent insurance agent is/are true a)they are not eligible for a broker license b)they may represent several insurers simultaneously d)they may place business with an insurance company that has not appointed them as an agent

b)they may represent several insurers simultaneously

Producers found guilt of comingling are subject to a fine of up too: 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

At one hearing, the maximum fine which may be imposed upon a producer, by the super intendent of insurance is a)500 b)1,000 c)5,000 d)2,500

d)2,500

The superintendent may remove or suspend the license of a broker or agent for any of the following reasons except: A) missapproiated funds b)intentionally withheld material information in the license application c)attempt to avoid 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

An individual non resident, licensed to act as agent or broker in there home state, would receive a non ny resident license without taking a written exam in all the following situations, except a)they are in good standing in the home state b) they have submitted a completed application c) they have paid the appprioriate fee d)there is no reciprocity with ny residents

d)there is no reciprocity with ny residents