State RegulationsNY specificDifficulty 2/5
Under N.Y. Ins. Law §2101(k)(1), which statement about transacting the business of insurance in New York is correct?
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Answer & full 3-part explanation (select an option above, or peek)
Why D is correct
Under N.Y. Ins. Law §2101(k)(1), no person, firm, association, or corporation may sell, solicit, or negotiate insurance in New York unless licensed as required for that activity. The bar is activity-based: whoever performs the licensable acts - employee or owner - must hold the appropriate license.
Why the other options are wrong
- A) A licensed producer's later signature does not retroactively cure unlicensed solicitation; each person who performs the act must be licensed.
- B) The insurer's license authorizes the insurer to do an insurance business; it does not confer producer authority on unlicensed employees.
- C) Producer authority is line-specific - the separate prelicensing education tracks for life and for accident & health show that each authority stands on its own.
Memory hook
If you perform the act - sell, solicit, or negotiate - you need the license; no borrowing and no after-the-fact signatures.