State RegulationsNY specificDifficulty 2/5
A New York agent is asked by an insurer that is not authorized in New York to solicit policies for it in Buffalo, and no statutory exemption applies. Under N.Y. Ins. Law §2117, the agent who solicits this business is
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Answer & full 3-part explanation (select an option above, or peek)
Why C is correct
Under N.Y. Ins. Law §2117, a person may not aid or assist an unauthorized insurer to transact insurance business in New York. Soliciting or placing coverage in this state for an insurer the Superintendent has not authorized is a violation by the producer personally — a New York license only authorizes business with authorized insurers, and any exemption is narrow and specific.
Why the other options are wrong
- A) A New York license authorizes business only with insurers authorized in New York; it is no defense when the insurer itself is unauthorized.
- B) Section 2117 reaches the person who aids the unauthorized insurer, not just the insurer — the producer shares in the violation.
- D) Disclosure in an application cannot cure prohibited solicitation; absent a specific exemption, the business itself is unlawful.
Memory hook
Channeling business to an unauthorized insurer makes the agent a co-violator.