New York Property & Casualty Insurance License Exam — All Questions
3 questions
Which New York agency regulates insurance and licenses resident property and casualty producers?
- a.The New York Department of Motor Vehicles
- b.The New York Department of Financial Services (DFS)✓
- c.The New York Secretary of State
- d.The New York Attorney General's office
Insurance in New York is regulated by the Department of Financial Services (DFS), led by the Superintendent of Financial Services. DFS licenses producers, reviews forms and rates, and enforces the Insurance Law. It absorbed the former Insurance Department, so the DMV and Secretary of State do not license producers.
A New York producer offers to pay part of the commission back to a client as an inducement to buy a policy. Under New York's Insurance Law this is:
- a.Permitted if the insurer approves
- b.Permitted for commercial clients only
- c.Prohibited rebating✓
- d.Required to be disclosed but otherwise lawful
Giving any rebate of premium or commission, or other valuable consideration not specified in the policy, as an inducement to buy is prohibited rebating under New York's Insurance Law and unfair trade practices provisions. It can bring fines and license action by the Department of Financial Services.
After a New York personal auto or homeowners policy is past its initial underwriting period, an insurer's mid-term cancellation is generally allowed only:
- a.For specific statutory grounds such as nonpayment of premium or fraud, with required advance written notice✓
- b.For any reason, with no notice
- c.Only during the first 24 hours of the policy
- d.Never, once the policy is issued
New York limits mid-term cancellation of seasoned personal-lines policies to defined grounds such as nonpayment or material misrepresentation, and requires advance written notice so the insured can replace coverage. The exact notice day-counts are set by regulation and can change; verify current figures with the New York DFS.