New York producer licensing: process, definitions, and license types (Ins. Law 2101-2109, 2136)

Correct answer: Insurance broker, because Dana acts for the insured in placing coverage

A broker represents the insured, shopping the market and negotiating with insurers on the client's behalf. Dana is acting for the company, not for any insurer, so the broker capacity fits.

Correct answer: Only the corporation's officers and directors

Under section 2103(c), a license issued to a corporation authorizes only its officers and directors, named in the license as sub-licensees, to act individually as agents under it.

Correct answer: 18, measured at the time the license is issued

Section 2103(d) requires every individual applicant and every proposed sub-licensee to be eighteen years of age or over at the time the license is issued.

Correct answer: The executor, without having to pass a written examination

Section 2109(a)(1)(A) lets the Superintendent issue a temporary license to the executor or administrator of the estate of a deceased licensed accident and health agent, among the other license types the paragraph lists, without requiring a written examination.

Correct answer: It terminates immediately along with the corporation's license

Section 2110(d) provides that revoking or suspending a producer's license terminates forthwith that license and the authority it conferred on all sub-licensees. A sub-licensee acts only in the licensee's name, so when the entity's license ends, so does the sub-licensee's authority.

Correct answer: Any and every line of authority except life insurance and variable life and variable annuity products

Section 2104(b)(1)(B) gives a broker licensed under that branch authority over any and every line of authority except life insurance and variable life and variable annuity products.

Correct answer: No, because a firm's license may name only the firm's members as sub-licensees

Section 2103(c) provides that a license issued to a firm or association authorizes only the members of the firm, named as sub-licensees, to act individually as agents under it. An employee who is not a member cannot be named. She would need her own individual license.

Correct answer: A person the absent agent designates

Section 2109(a)(2) allows a temporary license to any person designated by a licensed agent or broker who is absent because of service in any branch of the U.S. armed forces.

Correct answer: She may not, because a temporary agent may be licensed only as an agent of the insurers the original licensee represented

Section 2109(d) provides that a person eligible for a temporary agent's license may be licensed only as an agent of the insurer or insurers the original licensee was licensed to represent at the time of the death, military duty or disability. Insurer Z is outside that scope.

Correct answer: One year after the revocation

Section 2110(e)(1) bars a person whose license has been revoked from obtaining any license under the chapter for one year after the revocation, or for one year after a final judicial determination affirming it.

Correct answer: Yes, because a separate bank deposit for each principal is not required if each principal's funds are reasonably ascertainable from her books and records

Section 2120(c) provides that the fiduciary rule does not require a separate bank deposit for each principal, as long as the funds held for each principal are reasonably ascertainable from the producer's books of account and records. The account here is also kept apart from her own funds.

Correct answer: Health maintenance organization contracts and legal services insurance

Section 2103(a) lists life insurance, variable life and variable annuity products, and accident and health insurance, including for this purpose health maintenance organization contracts and legal services insurance.

Correct answer: The property and casualty agent license under § 2103(b), which includes accident and health

Section 2103(b) authorizes an agent for accident and health or sickness, property, casualty and personal lines, meaning every line other than life and variable products. Disability income is accident and health, and homeowners and auto are property and personal lines.

Correct answer: The producer's license expires and is not renewed

Section 2112(c) makes appointments valid until the appointing insurer terminates them under the agency contract, the license is suspended or revoked by the Superintendent, or the license expires and is not renewed.

Correct answer: A statement of the facts relative to the termination for cause, within 30 days

Section 2112(d) requires an insurer that terminates a producer for cause, for conduct listed in section 2110(a), to file with the Superintendent within thirty days a statement of the facts relative to that termination.

Correct answer: File written comments with the Superintendent within 30 days, sending a copy to the insurer, and the comments become part of her file

Section 2112(f)(2) lets the producer, within thirty days after receiving the notification, file written comments on its substance with the Superintendent, sending a copy to the reporting insurer at the same time. The comments become part of the Superintendent's file and travel with every copy of the report.

Correct answer: Trustworthy and competent to act as a broker in a way that safeguards the interests of the insured

Section 2104(a)(1) authorizes a broker's license for an applicant deemed trustworthy and competent to act as a broker in such manner as to safeguard the interests of the insured, and otherwise qualified.

Correct answer: The Superintendent may suspend, revoke or refuse to renew the license after notice and a hearing, because a felony conviction is a listed ground

Section 2110(a)(7) lists conviction of a felony as a ground on which the Superintendent may refuse to renew, revoke or suspend a producer's license, after notice and a hearing.

Correct answer: Insurance producer

Insurance producer is the umbrella term for those licensed to sell, solicit or negotiate insurance: insurance agents, title insurance agents and insurance brokers, along with intermediaries such as excess line brokers and reinsurance intermediaries.

Correct answer: A call-center employee paid commissions for persuading callers to buy policies and negotiating their coverage terms

A producer license is required of anyone who sells, solicits or negotiates insurance for compensation. A commissioned employee who persuades callers to buy and negotiates terms is doing exactly that.

Correct answer: As a broker, representing the insured; the capacity determines whose interests it owes and which license it relies on

Agent and broker are distinct capacities: an agent represents an appointing insurer, and a broker represents the insured. Placing business for a client with an insurer that has not appointed the agency, after shopping the market, is broker activity under the broker's license.

Correct answer: The licensee's lines of authority and the expiration date

Section 2104(b)(3) requires the license to contain the licensee's name, address, personal identification number, date of issuance, lines of authority, expiration date and any other information the Superintendent deems necessary.

Correct answer: An officer or director of the corporation, or the executor or administrator of the deceased officer's estate

Section 2109(a)(1)(D) permits a temporary license to an officer or director of a corporation upon the death of the only officer or director who was qualified as a sub-licensee, or to the executor or administrator of that deceased officer's or director's estate.

Correct answer: The Superintendent may suspend, revoke or refuse to renew the license after notice and a hearing, because materially incomplete application information is a ground

Section 2110(a)(2) makes providing materially incorrect, materially misleading, materially incomplete or materially untrue information in the license application a ground for refusal to renew, revocation or suspension, after notice and a hearing.

Correct answer: It is a ground on which the Superintendent may discipline her New York license

Section 2110(a)(9) makes it a ground for discipline that the licensee had an insurance producer license, or its equivalent, denied, suspended or revoked in any other state, province, district or territory.

Correct answer: The agent's next of kin

Section 2109(a)(3) authorizes a temporary license to the next of kin of a person who has become totally disabled and is prevented from pursuing the duties of the occupation, and who at the start of the disability was a licensed accident and health agent under section 2103(a), a licensed agent under section 2103(b), a licensed title insurance agent or a licensed broker.

Correct answer: Knowingly accepting insurance business from an unlicensed individual is a ground for discipline of her license

Section 2110(a)(12) lists knowingly accepting insurance business from an individual who is not licensed as a ground on which the Superintendent may refuse to renew, revoke or suspend a license.

Correct answer: She is barred for the same one-year period unless the Superintendent finds, after notice and a hearing, that she was not personally at fault

Section 2110(e)(2) provides that when a firm's, association's or corporation's license is revoked, no member, officer or director may obtain any license, or be named as a sub-licensee, for the same one-year period, unless the Superintendent determines after notice and hearing that the person was not personally at fault.