Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

Insurance Life & Health > Unit 23: NY Law, Rules, & Regulations Common To Life, Accident, & Health Insurance > Flashcards

Unit 23: NY Law, Rules, & Regulations Common To Life, Accident, & Health Insurance Flashcards

1
Q

Under NY law, what is a producer?

A

An insurance agent, insurance broker, insurance consultant, reinsurance intermediary, excess lines Horner, or any other person required to bc licensed under the laws of NYS to transact insurance.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

What is “home state”?

A

The District of Columbia or any US state or territories in which a producer maintains a principal place of residence or business & is licensed to act as a producer

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

What is what is an insurance agent?

A

A person authorized by an insurer, fraternal benefit society, or HMO, & any subagent of such an agent, to solicit, negotiate, or sell insurance, HMO, or annuity contracts

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

How does someone qualify for an agent’s license?

A

•at least 18 years old
•apply to the superintendent, using the required forms
•fulfill the prelicensing education requirement
•pass a written exam within 90 days of application
•pay an application fee

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

What is the prelicensing education requirement?

A

To qualify for the required examination, applications for an agent or broker license must complete a prelicensing study course approved by the superintendent.

Study hours required:
•20 hours for life or health producers (monoline)
•40 hours for life, accident & health (multiline) or personal lines
•90 hours for property & casualty (multiline)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

What providers are acceptable sources of prelicensing education?

A

•degree-conferring college or university that has a curriculum registered with the state education department
•college of insurance
•any other institution which maintains equivalent standards of instruction, which has been continuously in existence for not less than 5 years, & which is approved by the superintendent

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

Which individuals are exempt from taking the NY written exam?

A

•representatives of airlines, buses, etc. selling baggage or accident insurance only
•applicators who were previously licensed, provided they file applications within 2 years of the termination of their licenses
•licensed individuals applying for additional licenses to represent an insurer other than the insurer who originally appointed them
•applicants who are nonresident agents or brokers, at the superintendent’s discretion
•any individual whose license has been suspended or revoked, at the superintendent’s discretion
•a chartered life underwriter (CLU) or a chartered property casualty underwriter (CPCU), at the superintendent’s discretion
—> superintendent may waive part of the written exam as well as the prelicensing education requirement, but designers generally but sit for a 50-question exam on NYS laws & regulations
•a non resident applying for a resident license in NY,
—>who was previously licensed for the same lines of authority in another state
—>who has a letter of clearance from his home state that he’s in good standing
—>whose home state grants nonresident licenses to NY residents on the same basis (reciprocity)
—>who applies within 90 days of cancelling the applicant’s own resident license

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

After qualifying for the license, the applicant may be verified in any of what lines of authority?

A

•life
•accident & health or sickness
•property
•casualty
•variable life/variable annuity (with FINRA licenses)
•personal lines (property & casualty)
•life settlements
•title

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

How long can a license be issued for?

A

•superintendent may issue a license to a new applicant for a term of more than 2 years, but CANNOT be more than 30 months

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

What is an insurance broker?

A

•any person, firmed association, or corporation that solicits, negotiates, or sells insurance or annuity contacts for an insured (other than himself) in exchange for a commission
•”shops” for the buyer but us paid by the insurer the client chooses

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

How can someone be licensed by the superintendent as an insurance broker?

A

•at least 18 years old
•apply in writing to the superintendent within 2 years of passing the exam using the required forms
•complete any applicable prelicensing education requirements
•pass an exam
•pay an application fee

-additionally, to be a broker for property & casualty, the candidate must have been employed by an insurance company, agent, or broker for at least 1 year during the 3 years preceding the date of the application

-if applying for a broker license, candidates may submit a statement of employer form to the department in lieu of completing a prelicensing course
—>statement of employer form must document regular employment by a NY licensed insurance company, broker, or agent for no less than 1 year during the 3 years preceding the date of application

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

Who is exempt from taking the broker exam?

A

•individual who has passed the broker licensing exam within the past 2 years
•applicant who is currently licensed as an agent
•chartered life underwriter (CLU)
•chartered property casualty underwriter (CPCU)
•chartered financial consultant (ChFC)
•persons who hold a master of science in financial services (MSFS) designation

-designers generally must sit for a 50-question exam on NYS laws & regulations even though they are exempt from prelicensing training & the normal agent & broker exams

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

What is a consultant?

A

•any person who receives a fee for providing insurance counseling or advice
•compensated by the insured, NOT the insurer

•insurance consultants & producers who offer advice to the public about the benefits, advantages, & disadvantages of insurance policies for a fee must be licensed but are not required to complete a prelicensing education course

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

Who does not require a consultant’s license?

A

Lawyers, actuaries, & CPAs who are providing information in the course of their professional capacity

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

What do consulting services include?

A

Examining, appraising, reviewing, evaluating, & making recommendations on any insurance or profit-sharing contract or plan

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

What is required to be licensed as a consultant?

A

File an application, pass a written exam (unless exempt), & pay the fee

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

What is an independent adjuster?

A

Any person, firm, association, or corporation who, door a fee other compensation, investigates & adjusts claims arising under insurance contracts on behalf of the insurer

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

What is a public adjuster?

A

Any person, firm, association, or corporation who, for a few other than compensation, negotiates or settles claims for loss or damage to property on behalf of an insured

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

What is required to be licensed as an adjuster?

A

•at least 18 years old
•file a written application
•submit fingerprints to the superintendent along with the application
•pass the licensing exam
•pay the required fee
•maintain a $1,000 bond with the superintendent
•have at least 1 year of experience in the insurance business or complete 40 hours of formal training in a program approved by the superintendent (if applying for a public adjuster’s license)
•not have been convicted of a felony or any crime or offense involving fraudulent or dishonest practices
•have at least 5 reputable citizens in the community where the applicant resides or transacts business certify they have personally known the applicant for at least 5 years, believe the application statements to be true, & that the applicant is honest, of good character, & competent

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

When do adjusters’ licenses expire?

A

•December 31 every 2 years
•may be renewed for additional 2-year terms

•in the case of a license issued to a new applicant, the superintendent may issue a license for a term of more than 2 years, but CANNOT exceed 30 months

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

What is a nonresident agent or broker?

A

•individual who is licensed or authorized to transact insurance in the state where the individual resides or has an office

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

When may an applicant qualify for a NY license as a nonresident?

A

Only if they hold a similar license in another state or foreign country

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

When does an individual who applies for an insurance agent license in NY who was previously licensed for the same lines of authority in another state not have to take prelicensing education or pass a licensing exam?

A

•applicant’s home state is reciprocal—>grants nonresident licenses to residents of NY on the same basis
•person is currently licensed in that state
OR
•application is received within 90 days of cancellation of the previous license & the prior state must issue a certification that at the time of cancellation the producer was in good standing

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
24
Q

How does an individual or entity licensed in another state who moves to NY become a resident licensee?

A

•must apply within 90 days of establishing legal residence
•no prelicensing education or exam is required to obtain any line of authority previously held in the prior state except where the superintendent determines otherwise

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
25
Q

What is a business entity?

A

•a corporation, association, partnership, limited liability company, limited liability partnership, or other legal entity

26
Q

When do business entity licenses for insurance brokers representing life insurance, variable life & variable annuity insurance, or accident & health insurance & sickness lines of authority?

A

June 30 of odd-numbered years

27
Q

When do business entity licenses expire for insurance agents that write accident & health or sickness, property, casualty, or personal lines insurance on behalf of an insurer?

A

June 30 of of even-numbered years

28
Q

When will a license issued to an individual who was born in an odd-numbered year will expire?

A

On the individual’s birthday in each odd-numbered year

29
Q

When will a license issued to an individual who was born in an even-numbered year will expire?

A

On the individual’s birthday in each even-numbered year

30
Q

What are temporary licenses?

A

•superintendent can issue temporary licensees for up to 90 days without requiring the applicant to pass a written exam if the original producer dies or becomes disabled
•one may renew the temporary license for additional 90-day terms, NOT more than 15 months
•a temporary license issued to the designer of a producer in the military may only be extended for 60 days past the time the absent producer receives a final discharge
•temporary licensees cannot solicit, negotiate, or sell new insurance

31
Q

Who may the superintendent issue a temporary insurance producer’s license to without requiring an exam if the superintendent deems it necessary for servicing an insurance business?

A

•executor or administrator of the estate of a deceased producer
•surviving next of kin of a deceased producer, where there is no administrator or executor of the estate
•an officer or director of a corporation upon the death of the only officer or director who was qualified as a sublicensee or to the executor or administrator of the estate of such person
•any surviving member of a firm or association who at the member’s death was a licensed insurance producer
•the designee of a licensed insurance producer entering the military
•the next of kin of a licensed producer who becomes totally disabled

32
Q

How long are producer licenses issued in NYS valid for?

A

2 years

33
Q

When should a license renewal application be filed?

A

•No later than 60 days prior to the date the license expires or the applicant must pay a nominal late-filing fee
•can renew as early as 180 days before expiration

34
Q

When must a licensee notify the department of financial services of change of address (business or residence), including email address?

A

Within 30 days of the change

35
Q

When must a licensee notify the department of financial services of certification from a new home state?

A

Within 30 days of the change if a nonresident moves from one state to another

36
Q

When must a licensee report to the superintendent any administrative action taken against him in another jurisdiction or by another governmental agency in NY?

A

•within 30 days of the final disposition of the matter
•report is to include a copy of the order, consent to order, or other relevant legal documents

37
Q

What are the continuing education requirements?

A

•all licensed producers, public adjusters, & consultants must complete 15 credits of approved continuing education courses from approved course providers every 2 years
•compliance with these requirements will begin with the first complete 2-year licensing period followed the issuance of the license

38
Q

How much notice does the superintendent have to give for a hearing?

A

•written notice
•at least 10 days in advance

39
Q

If an individual has a hearing and is liable for a civil penalty, within how many days must they pay it?

A

120 days

40
Q

Anyone who violates a cease & desist order may be subject to a penalty of up to how much?

A

Up to $5,000 for each violation

41
Q

What are the penalties for violating the state’s insurance laws?

A

•up to $500 for each violation to a maximum of $2,500
•if the licensee fails to pay such penalty within 20 days & the order is not stated by the court, the superintendent may then revoke or suspend the license
•violation of NY insurance law is a misdemeanor, unless specifically identified as a felony
•every penalty imposed is in addition to any penalty or forfeiture otherwise provided by the law
•willful violations may result in the person or entity paying a penalty in a sum not exceeding $1,000 for each offense

42
Q

How long does an individual, corporation, firm, or association have to wait to get a new license if their insurance producer license was revoked?

A

1 year

43
Q

If a person does not provide a good faith response to a request for information from the superintendent within 15 days, what can they get fined?

A

Up to $500 per day of no response with a max of $10,000

44
Q

What is an organization’s license called?

A

A certificate of authority

45
Q

When does each insurer & fraternal benefit society authorized to do business in NY have to file a statement of its financial condition & affairs (as of December 31 of the preceding year) with the superintendent?

A

•by march 1 of each year
•if they don’t, they can be fined up to $250 per day, not exceeding $25,000 total

46
Q

Appointment of agent

A

•in order to sell insurance for an insurer, an agent or producer must be appointed by the insurer, thereby “placing” their license
•appointment must be made 15 days from the state an agency contract is executed with the insurance company or the first insurance application is submitted
•notice of appointment must be filed with the superintendent
•appointment is no longer a required part of an application for an initial agent license

47
Q

Until when are certificates of appointment valid?

A

•terminated by the appointing insurer
•license is suspended or revoked by the superintendent
•license expires & is not renewed

48
Q

Termination of agent appointment

A

•producers as well as companies & others with an insurance business relationship ship with a producer must submit a written notice of termination for cause to the department if they’re terminating a producer
•within 30 days of terminating a producer, the party terminating must submit a statement to the superintendent stating the facts relative to the terminate for cause
•within 15 days after filing notification with the superintendent, the part filing the termination for cause must provide a copy of that statement to the producer being terminated
•within 30 days after the insurance producer has received notification, the producer may file written comments about the notification with the superintendent & send a copy to the insurer at the same time
•any supplemental information must be promptly submitted to the superintendent & then to the producer

49
Q

Before an agent or producer may sell insurance for an insurer, he must first ______?

A

Be appointed by the insurer

50
Q

Who appoints the superintendent of insurance?

A

The governor

51
Q

How long must an insurer maintain a durable policy record for each insurance contract?

A

For 6 years after the date the policy is no longer in force or until after the filing of an examination in which the record was subject to review, whichever is longer

52
Q

In addition to any criminal liability, the superintendent may also levy a civil penalty against anyone who commits a fraudulent insurance or life detriment act for up to how much?

A

Up to $5,000 plus the the amount of the claim

53
Q

How much time does a licensee have to report any fraudulent acts to the superintendent?

A

Must be done within 30 days of the time the licensee has knowledge that a fraudulent act has taken or is about to take place

54
Q

When can a licensed insurance broker may place insurance with an insurer not authorized to do business in NY?

A

•a contract of reinsurance
•insurance against loss of or damage to property having a permanent situs outside of this state
•certain kinds of marine insurance

•a licensed excess line broker may exercise binding authority on behalf of an insurer not licensed or authorized to do business pursuant to NY law

55
Q

When must insurers give their insureds a notice explaining their privacy policies?

A

•at least by delivery after initial purchase
•and then at least once every year

56
Q

If a covered entity determines that a cybersecurity event has occurred, how long do they have to notify the superintendent?

A

Must notify as promptly as possible, but no later than 72 hours

57
Q

For cybersecurity regulations, when must each covered entity submit a written statement to the superintendent certifying that they’re in compliance with these regulations?

A

•annually, which covers the prior calendar year
•must be submitted by February 15

•covered entities must maintain for examination all records, schedules, & data supporting this certificate for a period of 5 years

58
Q

When is a covered entity exempt from the regulations mentioned previously?

A

If the covered entity has:
•fewer than 10 employees, including any independent contractors, of the covered entity or its affiliates located in NY or responsible for business of the covered entity
OR
•less than $5,000,000 in gross annual revenue in each of the last 3 fiscal years from NY business operations of the covered entity & its affiliates
OR
•less than $10,000,000 in year-end total assets, calculated in accordance with generally accepted accounting principles, including assets of all affiliates

59
Q

What happens when a policy is rescinded by an insurance company?

A

•it is as if the policy was never in force &. I legal contract existed between the insurer & the insured
•rescission of a policy may occur if the insurer believes the insured either concealed or made a material misrepresentation of a fact

60
Q

So the superintendent may examine a company’s affairs, policy records should be maintained for how long?

A

6 years

Insurance Life & Health (27 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions