Chapter 6 New York Insurance Laws and
regulations Questions With Complete Solutions
Superintendent of Financial services - ANSWER-Head of the department of Insurance.
Must be a citizen and resident of his state and appointed by the governor, by and with
the advice and consent of the senate and holds office at the pleasure of the governor.
The superintendent posses the rights, powers and duties in connection with financial
services and protection in this state, expressed or reasonably inplied by this chapter of
any other applicable law of the state.
Superintendents absence - ANSWER-The superintendent may, at his/her discretion,
designate one of his/her deputies to act as superintendent during his/her
absence/inability to act. If the office to the superintendent is vacant, or if the
superintendents absence/inability to act continues for a period of more than 30
successive days, the governor may designate a deputy to act as Superintendent until
filling the vacancy or return/recovery of the Superintendent.
Intent of the legislature - ANSWER-That the Superintendent will supervise the business
of, and the person providing, financial products and services, including any persons
subject to the provisions of the insurance law and the banking law.
Actions taken by the Superintendent - ANSWER-Superintendent will take actions as
he/she believes necessary to: 1. Foster the growth of the financial industry in NY and
spur state economic development through judicious regulation and vigilant supervision
2. Ensure the continued solvency, safety, soundness and prudent conduct of the
providers of financial products and services. 3. Ensure fair, timely and equitable
fulfilment of the financial obligations of such providers. 4. Protect users of financial
products and services from financially impaired or insolvent providers of such service 5.
Encourage high standards of honesty, transparency, fair business practices and public
responsibility 6. Eliminate financial fraud, other criminal abuse and unethical conduct in
the industry 7. Educate and protect users of financial products/services and ensure that
users are provided with timely and understandable info to make responsible decisions.
Powers of the Superintendent - ANSWER-Superintendent has power to 1. Conduct
investigations, research, studies and analysis of matters affecting the interests of
consumers of financial products and services, including tracking and monitoring
complaints. 2. Protect users of financial products and services
How the Superintendent Protects users of financial products and services - ANSWER-1.
Taking actions deemed necessary to educate/protect users of financial products and
services 2. Receiving complaints of consumers of financial products and services, and
where appropriate providing assistance to consumers, mediating the resolution w/
providers of FP&S or referring such complaints to the appropriate federal/state/local
, agency for action on complaints. 3. Studying the operation of laws and advising and
making recommendations to the governor on matters affecting consumers of and
investors in FP&S and promoting/encouraging the legit interests of users of FP&S.
4.cooperating w/, assisting in and when appropriate referring maters to the attorney
general in the carrying out of the attorney generals legal enforcement responsibilities for
the protection of consumers and investors for FP&S. 5. Initiating and encouraging
consumer financial education programs and disseminating materials to educate users of
FP&S 6. Providing technical assistance to local govts and for not for profits in the
development of consumer protection measures w/ respect to FP&S 7. Continuing and
expanding the detection, investigating and prevention of insurance fraud.
Examination of records - ANSWER-The Superintendent may examine the affairs,
transactions, accounts, records, documents and assets of each authorized insurer. Or
licensed producer as often as he/she deems necessary. Each insurer conducting
business in New York must be examined in detail at least once every 5 years. Any
company under investigation is responsible for all expenses involved in their
examination.
Company production of information - ANSWER-Every company or person from whom
info is sought, its officers, directors and producers must provide timely, convenient and
free access at all reasonable hours at its offices to all books, records, accounts, papers
and documents relating to the assists, business and affairs being examined. The refusal
to submit to examination or to comply w/ any reasonable written request of the examiner
is grounds for suspension, revocation, refusal or no renewal of any license or certificate
of authority.
The Superintendent's role in unfair methods of competition and deceptive acts/practices
- ANSWER-The superintendent is empowered to examine and investigate into the
affairs for any person in order to determine whether the person has engaged/is
engaging in any unfair methods of competition or unfair and deceptive acts/practices.
Civil penalty of $500 per day (not exceeding 10k) beyond the date specified by
Superintendent for response imposed if person/company does not provide a good faith
response to a request for info by the Superintendent
Getting levied 5 separate times in 5 years. - ANSWER-If any one person is levied by the
Superintendent 5 times within 5 years, the Superintendents authorized, after notice and
hearing, to levy an adtnl civil penalty against such person in an amnt not to exceed
$50k. Also Authorized to authorize adnl civil penalties not to exceed $50k, after notice
and hearing, against any such person for every 5 subsequent violations of this section
within a 5 year period.
Notice of hearings - ANSWER-If the superintendent has reason to believe that a person
has committed or is committing an unfair method of competition or unfair and deceptive
act, the Superintendent can conduct a hearing on that matter. Superintendent must give
written notice of said hearing at least 10 days in advance and identify the time, date
