State RegulationsNY specificDifficulty 2/5
A licensed New York agent buys a life insurance policy on the agent's own life through an insurer the agent represents. Under N.Y. Ins. Law §2324(f), how much commission may the agent retain on the agent's own policies?
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Answer & full 3-part explanation (select an option above, or peek)
Why C is correct
Under N.Y. Ins. Law §2324(f), an agent may place insurance on the agent's own life and retain a commission, but only up to 5% of the aggregate annual amount of commission on the agent's own policies. Anything beyond that narrow allowance would operate as an unlawful rebate of premium to the insured.
Why the other options are wrong
- A) Self-placed business is not banned outright; the statute simply caps the commission the agent may keep on it.
- B) An unlimited right to retain commission on one's own policies would be rebating by another name, which §2324 forbids.
- D) The 10% figure is the controlled-business commission ceiling from §2103(i), not the self-policy commission allowance.
Memory hook
Own policy commission: keep 5% or less.