State RegulationsNY specificDifficulty 1/5
A New York agent dies suddenly, leaving a book of policies in need of service while the estate is settled. Which mechanism does New York law provide for this situation?
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
Under N.Y. Ins. Law §2109, the Superintendent may issue temporary licenses in defined circumstances - for example, so the business of a deceased or disabled licensee can be preserved and existing policyholders keep service during the transition. This keeps coverage in force while the estate arranges for permanent licensing of whoever will take over the book.
Why the other options are wrong
- B) A license is personal to the licensee and does not survive death; an insurer cannot extend it to an executor.
- C) Licenses do not pass to heirs automatically; succession to a book of business requires DFS action such as a temporary license.
- D) Servicing insurance for the public without a license is an unlicensed transaction; informal insurer consent does not cure it.
Memory hook
Agent gone? The Superintendent's temporary license keeps the book alive.