State RegulationsNY specificDifficulty 3/5
A Connecticut-licensed producer holds a New York nonresident license. Her Connecticut home-state license is suspended. Under the New York Insurance Law, her New York status is:
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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(d), (e), 2103(g)(5, 11), and 2136, nonresident authority is founded on the producer holding a valid license in the home state. Once that foundation is suspended, the producer no longer satisfies the condition on which the New York nonresident license rests.
Why the other options are wrong
- A) New York does not treat a nonresident license as independent of home-state status; the two rise and fall together.
- B) Residence in New York, not a home-state suspension, is what would support a resident license, and conversion is never automatic.
- D) Paying fees does not substitute for the required current home-state license.
Memory hook
No home-state license, no nonresident authority - the out-of-state foundation must stay solid.