State RegulationsNY specificDifficulty 3/5
Which of the following is a ground on which the Superintendent may suspend or revoke a New York agent's license under N.Y. Ins. Law §2110?
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Answer & full 3-part explanation (select an option above, or peek)
Why B is correct
Under N.Y. Ins. Law §2110, grounds for suspension or revocation include material misstatements in the license application and conduct demonstrating untrustworthiness or lack of fitness to transact insurance. The application is the licensee's basic representation to the Superintendent, so dishonesty there goes to the heart of fitness to hold a license at all.
Why the other options are wrong
- A) Sharing a commission with another properly licensed producer for work on the transaction is not itself a disciplinary ground; the misreading confuses it with paying commissions to unlicensed persons.
- C) An insurer's routine non-cause termination of an appointment is not itself a statutory ground for license discipline.
- D) Holding multiple lines of authority simultaneously is expressly permitted and is not a ground for discipline.
Memory hook
Lie on the application, lose the license - §2110's clearest ground.