State RegulationsNY specificDifficulty 2/5
A New York agency's unlicensed receptionist urges a walk-in prospect to buy the agency's hospital-surgical policy and helps her complete the application. Under the New York Insurance Law, this conduct is:
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Answer & full 3-part explanation (select an option above, or peek)
Why B is correct
Under N.Y. Ins. Law §2101(k)(1), no person may solicit or negotiate insurance without a license. Urging the prospect to buy is 'solicitation' under §2101(o), and helping complete the application is 'negotiation' under §2101(m) - the receptionist needed a producer license to do either.
Why the other options are wrong
- A) Employment by a licensed agency does not extend the agency's license to unlicensed staff; licenses are personal to each producer.
- C) Accepting premium is not the trigger - the trigger is performing the licensable acts of selling, soliciting, or negotiating.
- D) Licensability does not depend on how the person is paid; even unpaid unlicensed solicitation is a violation.
Memory hook
Urging to buy = soliciting; helping with the application = negotiating; either act requires a license.