State RegulationsNY specificDifficulty 2/5
An insurer organized and licensed in another state wants to sell life insurance to New York residents. Under N.Y. Ins. Law §1102, which statement is correct?
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Answer & full 3-part explanation (select an option above, or peek)
Why D is correct
Under N.Y. Ins. Law §1102(a)-(b), every insurer transacting insurance in New York - domestic, foreign, or alien - needs a certificate of authority from the Superintendent beforehand. A home-state license confers no New York authority, and placing business with an unauthorized insurer exposes the producer to discipline.
Why the other options are wrong
- A) One state's license does not cross state lines; New York requires its own certificate of authority.
- B) Using New York licensees to solicit does not cure unauthorized status; the insurer itself must be authorized before business is transacted.
- C) Authorization comes first - transacting insurance before obtaining the certificate is itself the violation.
Memory hook
Licensed elsewhere? New York still says: get our certificate first.