New York Life & Health Insurance Exam — All Questions

Which body is responsible for licensing life and health insurance producers in New York?

• a.A private national producer association
• b.The New York State Department of Financial Services (DFS)✓
• c.A federal department of insurance
• d.The New York attorney general's consumer bureau

Producers in New York are licensed and disciplined by the New York State Department of Financial Services (DFS). Licensing is a state function; there is no federal insurance-licensing department, and private associations do not issue government licenses.

The New York Department of Financial Services is headed by which official?

• a.A board of insurance company executives
• b.A federal insurance commissioner
• c.A Superintendent of Financial Services appointed by the Governor✓
• d.A judge of the state supreme court

The regulator is led by a Superintendent of Financial Services appointed by the Governor. Knowing how the state's top insurance official is chosen -- elected or appointed -- is a common New York exam point.

In New York, what is the effect of an insurer 'appointing' a licensed producer?

• a.It authorizes the producer to represent and transact business for that insurer✓
• b.It replaces the need to hold a producer license
• c.It guarantees the producer a minimum commission set by the state
• d.It exempts the producer from continuing education

An appointment is the insurer's authorization for a licensed producer to represent it, filed with the regulator. It does not replace the license itself, set commissions, or waive continuing education.

How does a New York resident producer generally keep a life and health license in force?

• a.By selling a minimum dollar amount of policies each year
• b.By renewing on schedule and completing required continuing education, including ethics✓
• c.By re-taking the full state licensing exam every year
• d.By obtaining a new appointment from the guaranty association

New York conditions license renewal on timely renewal plus continuing education that includes an ethics component. There is no sales quota, no annual re-examination, and the guaranty association does not appoint producers.