State RegulationsNY specificDifficulty 1/5
Before an insurer may transact the business of insurance in New York, it must first:
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
Under N.Y. Ins. Law §1102(a)-(b), no insurer may transact insurance in New York without a certificate of authority issued by the Superintendent. Agents and brokers must likewise deal only with authorized insurers (outside recognized exceptions), so a New York producer's placements depend on the insurer's certificate being in force.
Why the other options are wrong
- B) NAIC membership is an association matter for regulators; it confers no authority to transact insurance in New York.
- C) County-level bonds are not the mechanism; authority to do an insurance business comes from the Superintendent's certificate.
- D) No legislative resolution is required; admission to do business runs through the Superintendent's certificate of authority.
Memory hook
No certificate of authority, no insurance business - the Superintendent's gate.