NY Life, Accident, and Health Insurance
Agent/Broker Exam Series 17-55|
QUESTIONS| GRADED A
Process 2103 (d-i) - 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)) - 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)) - 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)) - 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)) - 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)) - 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)) - - 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) - 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) - 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) - 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) - ANSWER-any licensed attorney at law of this state.
Consultants (2107) - 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) - 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 - 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) - 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
Agent/Broker Exam Series 17-55|
QUESTIONS| GRADED A
Process 2103 (d-i) - 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)) - 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)) - 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)) - 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)) - 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)) - 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)) - - 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) - 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) - 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) - 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) - ANSWER-any licensed attorney at law of this state.
Consultants (2107) - 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) - 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 - 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) - 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
