NY Life, Accident, and Health Insurance
Agent/Broker Exam Series 17-55
Questions and answers
Process .2103 .(d-i) .- .(correct .answer) .-
1. .The .Superintendent .may .issue .a .license .to .any .person, .firm .or .corporation .who .has .complied .wit
h .the .requirements .of .the .Insurance .Code, .authorizing .the .licensee .to .act .as .agent .of .any .authorize
d .insurer. .Every .individual .applicant .for .a .license .under .this .section .and .every .proposed .sub-licensee
.must .be .18 .years .of .age .or .older .at .the .time .of .issuance .of .such .license. .The .person .must .submit .t
o .and .pass .a .written .examination .required .by .the .Superintendent.
Producer .Definition .(2101(k)) .- .(correct .answer) .-
An .insurance .producer .means .an .insurance .agent, .insurance .broker, .reinsurance .intermediary, .exces
s .lines .broker, .or .any .other .person .required .to .be .licensed .under .the .insurance .laws .of .this .state .to
.sell, .solicit .or .negotiate .insurance.
Who .Should .be .Licensed .(2101(k)(1)) .- .(correct .answer) .-
1. .The .term ."insurance .producer" .does .not .include: .An .officer, .director .or .employee .of .a .licensed .in
surer, .fraternal .benefit .society .or .health .maintenance .organization .or .of .a .licensed .insurance .produc
er, .provided .that .the .officer, .director .or .employee .does .not .receive .any .commission .on .policies .wri
tten .or .sold .to .insure .risks .residing, .located .or .to .be .performed .in .this .state .and:
(a) .the .officer, .director .or .employee's .activities .are .executive, .administrative, .managerial, .clerical .or .
a .combination .of .these, .and .are .only .indirectly .related .to .the .sale, .solicitation .or .negotiation .of .insu
rance;
(b) .the .officer, .director .or .employee's .function .relates .to .underwriting, .loss .control, .Inspection .or .th
e .processing, .adjusting, .investigating .or .settling .of .a .claim .on .a .contract .of .Insurance; .or .
(c) .the .officer, .director .or .employee .is .acting .in .the .capacity .of .a .special .agent .or .agency .supervisor
.assisting .licensed .insurance .producers .where .the .person's .activities .are .limited .to .providing .technica
l .advice .and .assistance .to .licensed .insurance .producers .and .do .not .include .the .sale, .solicitation .or .n
egotiation .of .insurance.
Home .State .(2101(l)) .- .(correct .answer) .-
Home .state .means .the .District .of .Columbia .or .any .state .or .territory .of .the .United .States .in .which .a
,n .insurance .producer .maintains .his, .her .or .its .principal .place .of .residence .or .principal .place .of .busin
ess .and .is .licensed .to .act .as .an .insurance .producer.
Negotiate .(2101(m)) .- .(correct .answer) .-
Negotiate .or .negotiation .means .the .act .of .conferring .directly .with .or .offering .advice .directly .to .a .pu
rchaser .or .prospective .purchaser .of .a .particular .contract .of .insurance .concerning .any .of .the .substan
tive .benefits, .terms .or .conditions .of .the .contract, .provided .that .the .person .engaged .in .that .act .eith
er .sells .insurance .or .obtains .insurance .from .licensed .insurers, .fraternal .benefit .societies .or .health .m
aintenance .organizations .for .purchasers.
Sell .(2101(n)) .- .(correct .answer) .-
Sell .or .sale .means .to .exchange .a .contract .of .insurance .by .any .means, .for .money .or .its .equivalent, .o
n .behalf .of .a .licensed .insurer, .fraternal .benefit .society .or .health .maintenance .organization.
Solicit .(2101(o)) .- .- .(correct .answer) .-
Solicit .or .solicitation .means .attempting .to .sell .insurance .or .asking .or .urging .a .person .to .apply .for .a .
particular .kind .of .insurance .from .a .particular .licensed .insurer, .fraternal .benefit .society .or .health .mai
ntenance .organization.
Agent .2101(a) .- .(correct .answer) .-
In .this .section, .insurance .agent .means .any .authorized .or .acknowledged .agent .of .an .insurer, .fraterna
l .benefit .society .or .health .maintenance .organization .issued .a .certificate .of .authority .pursuant .to .the
.public .health .law, .and .any .sub-
agent .or .other .representative .of .such .an .agent, .who .acts .as .such .in .the .solicitation .of, .negotiation .f
or, .or .sale .of, .an .insurance, .health .maintenance .organization .or .annuity .contract, .other .than .as .a .lic
ensed .insurance .broker.
Agent .2101(k) .- .(correct .answer) .-
insurance .producer .means .an .insurance .agent, .insurance .broker, .reinsurance .intermediary, .excess .lin
es .broker, .or .any .other .person .required .to .be .licensed .under .the .insurance .laws .of .this .state .to .sell
, .solicit .or .negotiate .insurance. .
The .applicant .must .be .at .least .18 .years .of .age .at .the .time .of .license .issuance. .
An .examination .is .required .for .each .applicant, .except .where .noted .for .applicants .with .a .change .in .r
esidency .moving .to .New .York .(see .code .2103 .below).
Brokers .2101(c) .- .(correct .answer) .-
a .licensed .insurance .representative .who .does .not .represent .a .specific .insurance .company, .but .place
s .business .among .various .companies. .Legally, .the .broker .is .usually .regarded .as .a .representative .of .t
he .insured .rather .than .the .insuring .company.
Brokers .2101(h) .- .(correct .answer) .-any .licensed .attorney .at .law .of .this .state.
,Consultants .(2107) .- .(correct .answer) .-
The .Superintendent .may .issue .an .insurance .consultant's .license .to .any .person, .firm, .association .or .c
orporation .who .or .which .has .complied .with .the .requirements .of .this .chapter .with .respect .to .either:
.life .insurance, .meaning .all .of .those .kinds .of .insurance .authorized. .Any .such .license .issued .to .a .firm .
or .association .shall .authorize .only .the .members .of .such .firm .or .association .named .in .such .license .a
s .sub-
licensees .to .act .individually .as .consultants .there .under, .and .any .such .license .issued .to .a .corporation
.shall .authorize .only .the .officers .and .directors .thereof .named .in .such .license .as .sub-
licensees .to .act .individually .as .consultants .there .under.
Adjuster .2101(g) .- .(correct .answer) .-
The .Superintendent .may, .in .his .discretion .require .an .applicant .for .a .license .under .this .section .to .pr
esent .evidence, .in .such .form .as .he .prescribes, .that .such .applicant .has .been .employed, .for .a .period .
which .he .deems .reasonable, .by .an .insurer, .an .independent .adjuster .or .a .public .adjuster, .in .the .perf
ormance .of .duties .which .in .his .opinion .would .provide .the .applicant .with .a .satisfactory .preliminary .t
raining .for .the .duties .and .responsibilities .which .would .evolve .upon .him .as .a .licensee .under .this .sec
tion. .The .term .independent .adjuster .means .any .person, .firm, .association .or .corporation .who .for .mo
ney, .commission .or .any .other .thing .of .value, .acts .in .this .state .on .behalf .of .an .insurer .in .the .work .o
f .investigating .and .adjusting .claims .arising .under .insurance .contracts .issued .by .such .insurer .and .wh
o .performs .such .duties .required .by .such .insurer .as .are .incidental .to .such .claims .and .also .includes .a
ny .person .who .for .compensation .or .anything .of .value .investigates .and .adjusts .claims .on .behalf .of .a
ny .independent .adjuster.
Adjuster .2108 .- .(correct .answer) .-
Adjusters .will .be .licensed .as .either .independent .adjusters, .or .as .public .adjusters. .The .Superintenden
t .may .prescribe .the .types .of .independent .adjusters' .licenses .according .to .the .kind .or .kinds .of .insura
nce .claims .which .the .licensee .is .to .be .authorized .to .investigate .and .adjust. .No .adjuster .may .act .on .
behalf .of .an .insurer .unless .licensed .as .an .independent .adjuster, .and .no .adjuster .may .act .on .behalf .
of .an .insured .unless .licensed .as .a .public .adjuster. .A .public .adjuster .works .on .behalf .of .the .insured .f
or .a .fee.
Nonresident .2101(d) .- .(correct .answer) .-In .this .section, .non-
resident .insurance .agent .means .an .individual .who .is .a .non-
resident .of .this .state .and .who .is .licensed .or .authorized .to .act .as .an .insurance .agent .in .the .state .in .
which .he .resides, .or .in .which .he .or .the .firm .or .association .of .which .he .is .a .member .or .employee, .o
r .the .corporation, .of .which .he .is .an .officer, .director, .or .employee .maintains .an .office .as .an .insuranc
e .agent.
Nonresident .2101(e) .- .(correct .answer) .-In .this .section, ."non-
resident .insurance .broker", .means .an .individual .who .is .a .non-
resident .of .this .state .and .who .is .licensed .or .authorized .to .act .as .an .insurance .broker .in .the .state .in
.which .he .resides, .or .in .which .he, .or .the .firm .or .association .of .which .he .is .a .member .or .employee, .
, or .the .corporation, .of .which .he .is .an .officer, .director .or .employee .maintains .an .office .as .an .insuran
ce .broker.
Nonresident .2103(g)(5) .- .(correct .answer) .-
In .the .discretion .of .the .Superintendent, .no .written .insurance .examination .will .be .required .of .any .in
dividual .seeking .to .be .named .as .a .licensee .or .sub-licensee .who .is .a .non-resident .insurance .agent.
Nonresident .2103(g)(11) .- .(correct .answer) .-
No .written .insurance .examination .will .be .required .of .any .individual .who .applies .for .an .insurance .ag
ent .license .in .this .state .who .was .previously .licensed .for .the .same .line .or .lines .of .authority .in .anoth
er .state, .provided, .however, .that .the .applicant's .home .state .grants .non-
resident .licenses .to .residents .of .this .state .on .the .same .basis. .Such .individual .shall .also .not .be .requir
ed .to .complete .any .prelicensing .education. .This .exemption .is .only .available .if .the .person .is .currentl
y .licensed .in .that .state .or .if .the .application .is .received .within .90 .days .of .the .date .of .cancellation .of
.the .applicant's .previous .license .and .if .the .prior .state .issues .a .certification .that, .at .the .time .of .cance
llation, .the .applicant .was .in .good .standing .in .that .state .or .the .state's .producer .database .records, .m
aintained .by .the .National .Association .of .Insurance .Commissioners, .its .affiliates .or .subsidiaries .indicat
e .that .the .producer .is .or .was .licensed .in .good .standing .for .the .line .of .authority .requested. .An .indiv
idual .or .entity .licensed .in .another .state .that .moves .to .this .state .must .make .an .application .within .9
0 .days .of .establishing .legal .residence .to .become .a .resident .licensee. .No .prelicensing .education .or .e
xamination .will .be .required .of .that .person .to .obtain .any .line .of .authority .previously .held .in .the .prio
r .state .except .where .the .Superintendent .determines .otherwise .by .regulation.
Nonresident .2136 .- .Reciprocity .- .(correct .answer) .-
The .Superintendent .shall .waive .any .requirements .for .a .nonresident .license .applicant .otherwise .appli
cable .under .this .chapter .if: .
(a) .the .applicant .has .a .current .and .valid .license .in .his .or .her .home .state .and .is .in .good .standing .in .
his .or .her .home .state; .
(b) .the .applicant .has .submitted .a .completed .application .in .the .form .prescribed .by .the .Superintende
nt .or .submitted .the .application .for .licensure .submitted .to .his .or .her .home .state; .
(c) .the .applicant .has .paid .the .fees .required .by .this .chapter; .and .
(d) .the .applicant's .home .state .awards .nonresident .insurance .producer .licenses .to .residents .of .this .st
ate .on .the .same .basis .as .provided .in .this .subsection.
Business .Entities .2101(p) .- .(correct .answer) .-
A .business .entity .means .a .corporation, .association, .partnership, .limited .liability .company, .limited .lia
bility .partnership .or .other .legal .entity.
Business .Entities .2103(e) .- .(correct .answer) .-Before .any .original .insurance .agent's .license .is .issued .to
.a .business .entity, .there .must .be .on .file .in .the .office .of .the .Superintendent .an .application .by .the .pr
ospective .licensee .in .such .form .or .forms .and .supplements, .and .containing .information .the .Superinte