NY License Exam - New York General
Insurance Laws Questions and Answers
Rated A
The Superintendent is the head of the Department of Insurance in New York. The _______
appoints the Superintendent to a four-year term. ✔✔governor
If the Superintendent requests information during an examination or investigation and a person
does not respond within ____ days, he or she may impose a penalty of up to $500 per day (not
more than $10,000 total) for each day the person fails to respond. ✔✔15
If the Superintendent imposes five separate penalties against a person within five years for
failing to respond to his or her inquiries, the Superintendent may levy an additional penalty of up
to _________. ✔✔$50,000
To qualify for a certificate of authority, a mutual insurer must show that it: ✔✔(1) maintains the
required surplus to fulfill its obligations to policyholders;
(2) has the required number of applications for insurance;
,(3) has a genuine membership list; and
(4) has received premiums from members and will issue policies within 60 days after receiving a
certificate of authority.
A producer's appointment of an agent remains in effect until ✔✔(1) terminated by the insurer;
(2) the producer's license is suspended or revoked; or
(3) the producer's license expires and is not renewed.
Controlled business ✔✔insurance that is written primarily on the lives, property, or risks of the
licensee or of the licensee's family members, employer, or business associates.
Agents and brokers must maintain records showing receipts and disbursements for each premium
account. These records must identify: ✔✔(1) the date and amount of each transaction
(2) the name of the insured and insurer
, (3) the policy binder number
(4) the type of risk involved
Insurers must keep records of: ✔✔(1) insurance policies, for six years after the date a policy is
no longer is in force or until the next examination report, whichever period is longer
(2) applications when a policy is not issued, for six years or until the next examination report,
whichever period is longer
(3) claim files, for six years after a claim is resolved or until the next examination report,
whichever period is longer
An insurer's records retention plan must describe: ✔✔(1) the types of records retained
(2) the retention method used
(3) the safeguards established to prevent the alteration of records
Insurance Laws Questions and Answers
Rated A
The Superintendent is the head of the Department of Insurance in New York. The _______
appoints the Superintendent to a four-year term. ✔✔governor
If the Superintendent requests information during an examination or investigation and a person
does not respond within ____ days, he or she may impose a penalty of up to $500 per day (not
more than $10,000 total) for each day the person fails to respond. ✔✔15
If the Superintendent imposes five separate penalties against a person within five years for
failing to respond to his or her inquiries, the Superintendent may levy an additional penalty of up
to _________. ✔✔$50,000
To qualify for a certificate of authority, a mutual insurer must show that it: ✔✔(1) maintains the
required surplus to fulfill its obligations to policyholders;
(2) has the required number of applications for insurance;
,(3) has a genuine membership list; and
(4) has received premiums from members and will issue policies within 60 days after receiving a
certificate of authority.
A producer's appointment of an agent remains in effect until ✔✔(1) terminated by the insurer;
(2) the producer's license is suspended or revoked; or
(3) the producer's license expires and is not renewed.
Controlled business ✔✔insurance that is written primarily on the lives, property, or risks of the
licensee or of the licensee's family members, employer, or business associates.
Agents and brokers must maintain records showing receipts and disbursements for each premium
account. These records must identify: ✔✔(1) the date and amount of each transaction
(2) the name of the insured and insurer
, (3) the policy binder number
(4) the type of risk involved
Insurers must keep records of: ✔✔(1) insurance policies, for six years after the date a policy is
no longer is in force or until the next examination report, whichever period is longer
(2) applications when a policy is not issued, for six years or until the next examination report,
whichever period is longer
(3) claim files, for six years after a claim is resolved or until the next examination report,
whichever period is longer
An insurer's records retention plan must describe: ✔✔(1) the types of records retained
(2) the retention method used
(3) the safeguards established to prevent the alteration of records
