New York State Insurance
Regulations Exam Questions and
Answers 100% PASS
Insurance regulations—ANSWER---Takes place at the state level
Disclosure Authorization—ANSWER---Is the responsibility of a producer (Agent) to explain to
an applicant the various sources from which the insurer (Company) will obtain information
regarding the applicants insurability.
Consumer reports—ANSWER---Written, oral and other forms of communication regarding a
consumers credit, character, reputation, or habits and used or collected to determine
whether a consumer is eligible for credit, insurance, employment, or other purposes.
Fraud and False Statements—ANSWER---Interstate transaction is subject to Fines and
imprisonment for up to 10 years.
Civil penalties—ANSWER---Up to $5000 can be imposed in addition to any criminal liability
Section 1033(Code)—ANSWER---Describes the criminal activity under the fraud statute.
Willfully and with intention to make false material statements.
Section 1034—ANSWER---The penalties for violations under section 1033 will be greater of
$50,000 or the amount of compensation the person received for the act and imprisonment
up to 15 years.
, NAIC—ANSWER---Organization that has done the most to standardize law between states.
Exclusions of the Superintendent—ANSWER----Cannot put someone in jail.
-Cannot put someone's license on probation.
-Does NOT write insurance laws
Superintendent—ANSWER---Is appointed by the governor to a 4-year term
Superintendent—ANSWER---Enforces state insurance laws and regulations
Superintendent—ANSWER---Acts as judge during the investigation process.
Pro-Rata—ANSWER---If the company cancels the policy, it must return 100% of unearned
premium
Short-Rata—ANSWER---If the policyholder canceled the policy, company returns 100% of
unearned premiums minus an acquisition fee.
Reinsurance Reserves—ANSWER---Guarantees the company has enough money to operate.
Notice of hearing—ANSWER---An individual or company being charged with unfair methods
of competition or deceptive practices must be given: At least 10 days after the date of notice
has been sent (Certified Mail)
-Most respond within 15 days of receiving notice.
Unfair marketing practices—ANSWER---Minimum $500 each/$2500 in aggregate (All
offenses) OR Suspension of license. Agent must pay fine within 20 days.
Aiding an authorized insurance company—ANSWER---$500 for first offense and $500 for
each month the agent continues to do it OR suspension of license.
© 2026 Copyright. All Rights Reserved. This document is
protected by copyright law, Copyrighted By Brittie Donald
Regulations Exam Questions and
Answers 100% PASS
Insurance regulations—ANSWER---Takes place at the state level
Disclosure Authorization—ANSWER---Is the responsibility of a producer (Agent) to explain to
an applicant the various sources from which the insurer (Company) will obtain information
regarding the applicants insurability.
Consumer reports—ANSWER---Written, oral and other forms of communication regarding a
consumers credit, character, reputation, or habits and used or collected to determine
whether a consumer is eligible for credit, insurance, employment, or other purposes.
Fraud and False Statements—ANSWER---Interstate transaction is subject to Fines and
imprisonment for up to 10 years.
Civil penalties—ANSWER---Up to $5000 can be imposed in addition to any criminal liability
Section 1033(Code)—ANSWER---Describes the criminal activity under the fraud statute.
Willfully and with intention to make false material statements.
Section 1034—ANSWER---The penalties for violations under section 1033 will be greater of
$50,000 or the amount of compensation the person received for the act and imprisonment
up to 15 years.
, NAIC—ANSWER---Organization that has done the most to standardize law between states.
Exclusions of the Superintendent—ANSWER----Cannot put someone in jail.
-Cannot put someone's license on probation.
-Does NOT write insurance laws
Superintendent—ANSWER---Is appointed by the governor to a 4-year term
Superintendent—ANSWER---Enforces state insurance laws and regulations
Superintendent—ANSWER---Acts as judge during the investigation process.
Pro-Rata—ANSWER---If the company cancels the policy, it must return 100% of unearned
premium
Short-Rata—ANSWER---If the policyholder canceled the policy, company returns 100% of
unearned premiums minus an acquisition fee.
Reinsurance Reserves—ANSWER---Guarantees the company has enough money to operate.
Notice of hearing—ANSWER---An individual or company being charged with unfair methods
of competition or deceptive practices must be given: At least 10 days after the date of notice
has been sent (Certified Mail)
-Most respond within 15 days of receiving notice.
Unfair marketing practices—ANSWER---Minimum $500 each/$2500 in aggregate (All
offenses) OR Suspension of license. Agent must pay fine within 20 days.
Aiding an authorized insurance company—ANSWER---$500 for first offense and $500 for
each month the agent continues to do it OR suspension of license.
© 2026 Copyright. All Rights Reserved. This document is
protected by copyright law, Copyrighted By Brittie Donald
