State RegulationsNY specificDifficulty 2/5
A New York corporation plans to operate an insurance agency, with licensed producers transacting business under the corporate name. Under the New York Insurance Law, the corporation:
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Answer & full 3-part explanation (select an option above, or peek)
Why B is correct
Under N.Y. Ins. Law §2101(p), 'person' includes corporations and other entities, and §2103(j)(2) requires a business entity transacting insurance to hold its own producer license. The entity license is in addition to - not instead of - the individual licenses of the natural persons who sell, solicit, or negotiate on its behalf.
Why the other options are wrong
- A) Individual licenses do not cover the firm; the entity itself transacts insurance under its own name and must be licensed.
- C) An individual producer's license is personal and cannot be stretched to cover a corporation.
- D) Insurers are licensed as insurers; an agency corporation is licensed as a producer, which is a separate category.
Memory hook
Entity agency? License the firm AND each producer - §2101(p) makes corporations 'persons.'