NY LICENSE EXAM - NEW YORK
GENERAL INSURANCE LAWS
CORRECT 100%
The Superintendent is the head of the Department of Insurance in New York. The
_______ appoints the Superintendent to a four-year term. - ANSWERgovernor
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. -
ANSWER15
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 _________. - ANSWER$50,000
To qualify for a certificate of authority, a mutual insurer must show that it: - ANSWER(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 - ANSWER(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 - ANSWERinsurance 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: - ANSWER(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: - ANSWER(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: - ANSWER(1) the types of records
retained
(2) the retention method used
(3) the safeguards established to prevent the alteration of records
New York has enacted the Insurance Frauds Prevention Act to address the problem of
insurance fraud in the state. The act does so by - ANSWER(1) giving the
Superintendent broad authority to investigate insurance fraud;
(2) encouraging reports of suspected insurance fraud;
(3) granting immunity for persons who report suspected insurance fraud; and
(4) setting penalties for insurance fraud.
The Consumer Information Privacy Regulation - ANSWERgoverns how insurers and
their producers treat personal health information and personal financial information from
individuals.
If the purchaser requests additional information about the producer's compensation, the
producer must disclose the following information at or before policy issuance (or within
five days if time is of the essence): - ANSWER(1) a description of the nature, amount,
and source of any compensation the producer will receive from the sale;
(2) a description of any alternative quotes presented by the producer, including the
coverage, premium, and compensation the insurance producer would have received
from selling such coverage;
(3) a description of any material ownership interest the producer has in the insurer
issuing the policy;
GENERAL INSURANCE LAWS
CORRECT 100%
The Superintendent is the head of the Department of Insurance in New York. The
_______ appoints the Superintendent to a four-year term. - ANSWERgovernor
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. -
ANSWER15
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 _________. - ANSWER$50,000
To qualify for a certificate of authority, a mutual insurer must show that it: - ANSWER(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 - ANSWER(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 - ANSWERinsurance 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: - ANSWER(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: - ANSWER(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: - ANSWER(1) the types of records
retained
(2) the retention method used
(3) the safeguards established to prevent the alteration of records
New York has enacted the Insurance Frauds Prevention Act to address the problem of
insurance fraud in the state. The act does so by - ANSWER(1) giving the
Superintendent broad authority to investigate insurance fraud;
(2) encouraging reports of suspected insurance fraud;
(3) granting immunity for persons who report suspected insurance fraud; and
(4) setting penalties for insurance fraud.
The Consumer Information Privacy Regulation - ANSWERgoverns how insurers and
their producers treat personal health information and personal financial information from
individuals.
If the purchaser requests additional information about the producer's compensation, the
producer must disclose the following information at or before policy issuance (or within
five days if time is of the essence): - ANSWER(1) a description of the nature, amount,
and source of any compensation the producer will receive from the sale;
(2) a description of any alternative quotes presented by the producer, including the
coverage, premium, and compensation the insurance producer would have received
from selling such coverage;
(3) a description of any material ownership interest the producer has in the insurer
issuing the policy;
