State RegulationsNY specificDifficulty 2/5
A licensed producer in Buffalo prepares an advertisement that calls attention to an insurer that is not authorized to do business in New York. Under N.Y. Ins. Law §2122, the advertisement is:
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Answer & full 3-part explanation (select an option above, or peek)
Why D is correct
Under N.Y. Ins. Law §2122, no insurance producer or other person may, by any advertisement or public announcement in this state, call attention to any unauthorized insurer. The mailer spotlighting an insurer not authorized in New York violates this prohibition, and adding a disclaimer that the insurer is unauthorized does not cure the problem, because the callout itself is what the statute forbids.
Why the other options are wrong
- A) Disclosure does not save the advertisement; §2122 prohibits calling attention to unauthorized insurers in advertisements, without an exception for disclaimers.
- B) The prohibition applies to advertisements in this state regardless of audience; there is no exception for readers who hold licenses.
- C) §2122 does not distinguish between lines of business; the bar on advertising unauthorized insurers applies to all products.
Memory hook
Never let an advertisement spotlight an unauthorized insurer; a disclaimer cannot cure it.