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State RegulationsNY specificDifficulty 1/5

Under N.Y. Ins. Law §2101(m), 'negotiate' means:

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Answer & full 3-part explanation (select an option above, or peek)

Why C is correct

Under N.Y. Ins. Law §2101(m), 'negotiate' means conferring or discussing with another person the terms and conditions of a contract of insurance for the purpose of effectuating a contract. Negotiating is one of the three licensable producer activities, so only a licensed producer may perform it.

Why the other options are wrong

  • A) Handling premium is a ministerial task; it is not conferring on terms and conditions to effect a contract.
  • B) Policy issuance is the insurer's act; negotiation is the producer's discussion with the applicant before any contract exists.
  • D) General advertising is not a discussion with a prospective insured about the terms of a contract.

Memory hook

Negotiate = talk terms to make the deal; think 'conferring on conditions.'

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