NY Life, Accident, and Health Insurance Agent/Broker
Exam Series 17-55| 200 QUESTIONS| GRADED A
Process 2103 (d-i) Correct Answer: 1. The Superintendent may issue a license to any person,
firm or corporation who has complied with the requirements of the Insurance Code, authorizing
the licensee to act as agent of any authorized 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 to 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, excess 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 insurer, fraternal benefit society or
health maintenance organization or of a licensed insurance producer, provided that the officer,
director or employee does not receive any commission on policies written 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
insurance;
(b) the officer, director or employee's function relates to underwriting, loss control, Inspection or
the 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
technical advice and assistance to licensed insurance producers and do not include the sale,
solicitation or negotiation 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 an insurance producer maintains his, her or its principal
place of residence or principal place of business 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 purchaser or prospective purchaser of a particular
contract of insurance concerning any of the substantive benefits, terms or conditions of the
contract, provided that the person engaged in that act either sells insurance or obtains insurance
from licensed insurers, fraternal benefit societies or health maintenance 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, on 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 maintenance organization.
Agent 2101(a) Correct Answer: In this section, insurance agent means any authorized or
acknowledged agent of an insurer, fraternal 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 for, or sale of,
an insurance, health maintenance organization or annuity contract, other than as a licensed
insurance broker.
Agent 2101(k) Correct Answer: insurance producer means an insurance agent, insurance broker,
reinsurance intermediary, excess lines 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 residency 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 places business among various companies. Legally, the broker
is usually regarded as a representative of the 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 corporation 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 as 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 present 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 performance of duties which in his opinion
would provide the applicant with a satisfactory preliminary training for the duties and
responsibilities which would evolve upon him as a licensee under this section. The term
independent adjuster means any person, firm, association or corporation who for money,
commission or any other thing of value, acts in this state on behalf of an insurer in the work of
investigating and adjusting claims arising under insurance contracts issued by such insurer and
who performs such duties required by such insurer as are incidental to such claims and also
includes any person who for compensation or anything of value investigates and adjusts claims
on behalf of any independent adjuster.
,Adjuster 2108 Correct Answer: Adjusters will be licensed as either independent adjusters, or as
public adjusters. The Superintendent may prescribe the types of independent adjusters' licenses
according to the kind or kinds of insurance 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 for 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, or the corporation, of which he is an officer, director, or
employee maintains an office as an insurance 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 insurance broker.
Nonresident 2103(g)(5) Correct Answer: In the discretion of the Superintendent, no written
insurance examination will be required of any individual 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 agent license in this state who was previously
licensed for the same line or lines of authority in another 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 required to complete any prelicensing education. This
exemption is only available if the person is currently 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 cancellation, the applicant was in good
standing in that state or the state's producer database records, maintained by the National
Association of Insurance Commissioners, its affiliates or subsidiaries indicate that the producer
is or was licensed in good standing for the line of authority requested. An individual or entity
licensed in another state that moves to this state must make an application within 90 days of
establishing legal residence to become a resident licensee. No prelicensing education or
examination will be required of that person to obtain any line of authority previously held in the
prior 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 applicable 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
Superintendent 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
state 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 liability 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 prospective licensee in such form or forms and supplements, and containing information
the Superintendent prescribes and for each business entity, the sub-licensee or sub-licensees
named in the application must be designated responsible for the business entity's compliance
with the insurance laws, rules and regulations of this state.
Temporary License (2109; Regs. 9, 18, 29, Part 20.1) Correct Answer: A temporary license may
be issued in the case of death, service in armed forces or disability. The Superintendent may
issue a temporary insurance agent's or insurance broker's license, or both, without requiring the
applicant to pass a written insurance examination or to satisfy certain requirements except as to
age in the following cases:
(1) In the event of the death of a person who at the time of his death was a licensed accident and
health insurance agent;
(a) to the executor or administrator of the estate of such deceased agent or broker;
(b) to a surviving next of kin of such deceased agent or broker, where no administrator of his
estate has been appointed and no executor has qualified under his duly probated will;
(c) to the surviving member or members of a firm or association, which at the time of the death
of a member was such a licensed insurance agent or licensed insurance broker; or
(d) to an officer or director of a corporation upon the death of the only officer or director who
was qualified as a sub-licensee or to the executor or administrator of the estate of such deceased
officer or director;
(2) to any person who may be designated by a person licensed pursuant to this chapter as an
insurance agent, or an insurance broker, or both, and who is absent because of service in any
branch of the armed forces of the United States.
(3) to the next of kin of a person who has become totally disabled and prevented from pursuing
any of the duties of his or her occupation, and who at the commencement of his or her disability
the license or licenses may be issued for a term not exceeding 90 days from the death of such
additional term or terms of 90 days each, not exceeding in the aggregate 15 months.
The Superintendent may issue renewal licenses for an additional term or terms of 90 days each
exceeding the aggregate period of 15 months when in his judgment it will best serve the interests
of any person serving in the armed forces of the United States. No person holding a temporary
license is permitted to solicit new business under the temporary license.
