State RegulationsNY specificDifficulty 2/5
An insurer terminates a New York agent for cause. Under N.Y. Ins. Law §2112(d), what must the insurer do?
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Answer & full 3-part explanation (select an option above, or peek)
Why B is correct
Under N.Y. Ins. Law §2112(d), an insurer that terminates a licensee for cause must report the termination to the Superintendent within 30 days and send the agent a copy within 15 days. Prompt reporting lets DFS track producers who move from insurer to insurer while carrying disciplinary histories, protecting both consumers and appointing companies.
Why the other options are wrong
- A) The time periods are reversed - the Superintendent receives the report within 30 days and the agent's copy goes out within 15 days.
- C) Other insurers are not the statutory recipients; the report goes to the Superintendent, who maintains the licensing record.
- D) Waiting for renewal defeats the purpose; the report is due within days of the termination, not at the next renewal.
Memory hook
Fired for cause: Superintendent in 30, agent copy in 15.