State RegulationsNY specificDifficulty 1/5
An insurer neglects its duty to report a for-cause termination of a New York agent to the Superintendent. Under N.Y. Ins. Law §2112(i), the insurer faces a penalty of up to:
Select an option to reveal the answer and the full 3-part explanation — free, no signup.
Answer & full 3-part explanation (select an option above, or peek)
Why C is correct
Under N.Y. Ins. Law §2112(i), an insurer that fails to make the required report of a for-cause termination is subject to a penalty of up to $5,000 per violation. The size of the exposure reflects how important termination reports are to DFS's ability to police problem producers across the market.
Why the other options are wrong
- A) $500 per violation belongs to the penalty scale for rebating violations, not to an insurer's failure to report a termination.
- B) $10 is far below the exposure; the statutory ceiling for failing to report a termination is $5,000 per violation.
- D) $50,000 exceeds the statutory maximum for this failure; the ceiling is $5,000 per violation.
Memory hook
Skip the termination report: up to $5,000 each time.