NY LIFE ACCIDENT AND HEALTH INSURANCE
AGENT BROKER EXAM EXAM SCRIPT 2026
◉ Controlled Business (2103(i)) Answer: The Superintendent may
refuse to issue, suspend, or revoke a license if an applicant receives
more than 10% of the aggregate net commissions during a 12-
month period from insurance sold to a licensee's spouse or other
family members or business associates or their immediate family.
◉ Sharing Commissions (2121, 2128) Answer: The sharing of
commissions with an unlicensed person or entity is prohibited.
◉ Fiduciary Responsibility Answer: When someone has a fiduciary
duty to someone else, the person with the duty must act in a way
that will benefit someone else, usually financially. The person who
has a fiduciary duty is called the fiduciary, and the person to whom
the duty is owed is called the principal or the beneficiary.
◉ License display Answer: an insurance agent or broker must
prominently display the license or licenses of the supervising person
or persons responsible for that office. While the Insurance Law and
regulations promulgated thereunder do not require other insurance
agents or brokers in an office to display their licenses, the
Department is of the view that it is a good practice for each licensee
to do so.
,◉ Commissions and compensation Answer: A sales commission is a
sum of money paid to an employee upon completion of a task,
usually selling a certain amount of goods or services. Employers
sometimes use sales commissions as incentives to increase worker
productivity. A commission may be paid in addition to a salary or
instead of a salary.
◉ Termination responsibilities of producer Answer:
https://www.nysenate.gov/legislation/laws/ISC/2112
◉ Aiding Unauthorized Insurer (2117) Answer: Acting for or aiding
unlicensed or unauthorized insurers or health maintenance
organizations. (a) No person, firm, association or corporation shall
in this state act as agent for any insurer or health maintenance
organization which is not licensed or authorized to do an insurance
or health maintenance organization business in this state, in the
doing of any insurance or health maintenance organization business
in this state or in soliciting, negotiating or effectuating any
insurance, health maintenance organization or annuity contract or
shall in this state act as insurance broker in soliciting, negotiating or
in any way effectuating any insurance, health maintenance
organization or annuity contract of, or in placing risks with, any such
insurer or health maintenance organization, or shall in this state in
any way or manner aid any such insurer or health maintenance
organization in effecting any insurance, health maintenance
organization or annuity contract.
,◉ Producer Compensation Transparency Answer: "Producer
Compensation Transparency," requires all New York-licensed
producers to offer unrequested information about their
compensation to their clients. If a client asks for more information,
the producer must make a second highly detailed disclosure.
◉ Cyber Security Requirements for Financial Services Companies
(Reg 23 ) Answer: Is designed to promote the protection of customer
information as well as the information technology systems of
regulated entities. This regulation requires each company to assess
its specific risk profile and design a program that addresses its risks
in a robust fashion. Senior management must take this issue
seriously and be responsible for the organization's cybersecurity
program and file an annual certification confirming compliance with
these regulations. A regulated entity's cybersecurity program must
ensure the safety and soundness of the institution and protect its
customers.
◉ Fair Credit Reporting Act (FCRA) Answer: federal law that
regulates the collection of consumers' credit information and access
to their credit reports. It was passed in 1970 to address the fairness,
accuracy, and privacy of the personal information contained in the
files of the credit reporting agencies.
◉ Workers Compensation Answer: Eligibility - All work injuries that
occur during the course of work are covered under New York
, workers' compensation law. New York, like most states, also covers
occupational diseases, which are illnesses that arise during the
course of employment. Typical occupational diseases include
asbestosis and hearing loss.
Industrial (work-related) injuries can include bone fractures,
sprains, burns, cuts, amputations, and other injuries that cause
immediate harm. If your injury requires more than simple first aid,
and it occurred in the course of your employment, you likely have a
workers' compensation claim.
Activities that happen outside the scope of your employment, such
as commuting to and from work, are not covered. In other words,
injuries or diseases arises from these activities do not give rise to a
workers' compensation claim.
Benefits - If you have an allowed workers' compensation claim, you
will begin receiving workers' compensation benefits immediately.
Your employer's workers compensation insurance carrier will pay
medical bills for treatment related to your industrial injury.
If you are unable to work due to your work-related injury or
occupational disease for more than seven days, your employer's
workers' compensation insurance carrier will begin payment of cash
benefits to compensate for your lost wages. These temporary
disability benefits equal two-thirds of your average weekly wage,
multiplied by the percentage of your disability. Cash benefits are
subject to a weekly maximum established by the state each year. As
of July 1, 2017, the maximum benefit is $870.61 per week.
AGENT BROKER EXAM EXAM SCRIPT 2026
◉ Controlled Business (2103(i)) Answer: The Superintendent may
refuse to issue, suspend, or revoke a license if an applicant receives
more than 10% of the aggregate net commissions during a 12-
month period from insurance sold to a licensee's spouse or other
family members or business associates or their immediate family.
◉ Sharing Commissions (2121, 2128) Answer: The sharing of
commissions with an unlicensed person or entity is prohibited.
◉ Fiduciary Responsibility Answer: When someone has a fiduciary
duty to someone else, the person with the duty must act in a way
that will benefit someone else, usually financially. The person who
has a fiduciary duty is called the fiduciary, and the person to whom
the duty is owed is called the principal or the beneficiary.
◉ License display Answer: an insurance agent or broker must
prominently display the license or licenses of the supervising person
or persons responsible for that office. While the Insurance Law and
regulations promulgated thereunder do not require other insurance
agents or brokers in an office to display their licenses, the
Department is of the view that it is a good practice for each licensee
to do so.
,◉ Commissions and compensation Answer: A sales commission is a
sum of money paid to an employee upon completion of a task,
usually selling a certain amount of goods or services. Employers
sometimes use sales commissions as incentives to increase worker
productivity. A commission may be paid in addition to a salary or
instead of a salary.
◉ Termination responsibilities of producer Answer:
https://www.nysenate.gov/legislation/laws/ISC/2112
◉ Aiding Unauthorized Insurer (2117) Answer: Acting for or aiding
unlicensed or unauthorized insurers or health maintenance
organizations. (a) No person, firm, association or corporation shall
in this state act as agent for any insurer or health maintenance
organization which is not licensed or authorized to do an insurance
or health maintenance organization business in this state, in the
doing of any insurance or health maintenance organization business
in this state or in soliciting, negotiating or effectuating any
insurance, health maintenance organization or annuity contract or
shall in this state act as insurance broker in soliciting, negotiating or
in any way effectuating any insurance, health maintenance
organization or annuity contract of, or in placing risks with, any such
insurer or health maintenance organization, or shall in this state in
any way or manner aid any such insurer or health maintenance
organization in effecting any insurance, health maintenance
organization or annuity contract.
,◉ Producer Compensation Transparency Answer: "Producer
Compensation Transparency," requires all New York-licensed
producers to offer unrequested information about their
compensation to their clients. If a client asks for more information,
the producer must make a second highly detailed disclosure.
◉ Cyber Security Requirements for Financial Services Companies
(Reg 23 ) Answer: Is designed to promote the protection of customer
information as well as the information technology systems of
regulated entities. This regulation requires each company to assess
its specific risk profile and design a program that addresses its risks
in a robust fashion. Senior management must take this issue
seriously and be responsible for the organization's cybersecurity
program and file an annual certification confirming compliance with
these regulations. A regulated entity's cybersecurity program must
ensure the safety and soundness of the institution and protect its
customers.
◉ Fair Credit Reporting Act (FCRA) Answer: federal law that
regulates the collection of consumers' credit information and access
to their credit reports. It was passed in 1970 to address the fairness,
accuracy, and privacy of the personal information contained in the
files of the credit reporting agencies.
◉ Workers Compensation Answer: Eligibility - All work injuries that
occur during the course of work are covered under New York
, workers' compensation law. New York, like most states, also covers
occupational diseases, which are illnesses that arise during the
course of employment. Typical occupational diseases include
asbestosis and hearing loss.
Industrial (work-related) injuries can include bone fractures,
sprains, burns, cuts, amputations, and other injuries that cause
immediate harm. If your injury requires more than simple first aid,
and it occurred in the course of your employment, you likely have a
workers' compensation claim.
Activities that happen outside the scope of your employment, such
as commuting to and from work, are not covered. In other words,
injuries or diseases arises from these activities do not give rise to a
workers' compensation claim.
Benefits - If you have an allowed workers' compensation claim, you
will begin receiving workers' compensation benefits immediately.
Your employer's workers compensation insurance carrier will pay
medical bills for treatment related to your industrial injury.
If you are unable to work due to your work-related injury or
occupational disease for more than seven days, your employer's
workers' compensation insurance carrier will begin payment of cash
benefits to compensate for your lost wages. These temporary
disability benefits equal two-thirds of your average weekly wage,
multiplied by the percentage of your disability. Cash benefits are
subject to a weekly maximum established by the state each year. As
of July 1, 2017, the maximum benefit is $870.61 per week.
