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NYS 17-74 Property and Casualty Insurance Laws and
Regulations EXAM QUESTIONS AND CORRECT VERIFIED
SOLUTIONS LATEST UPDATE THIS YEAR – JUST RELEASED
NYS 17-74 Property and Casualty Insurance Laws and Regulations Exam Practice Test
EXAM COVERAGE OVERVIEW (10 Key Points)
1. Exam Format: The NYS 17-74 exam consists of 50 multiple-choice questions with a 1-
hour time limit. A 70% passing score is required .
2. Exam Weighting: The exam content is divided into Insurance Regulation (33%) and New
York Laws & Regulations Pertaining to Property and Casualty Insurance (67%) .
3. Regulatory Agency: The New York Department of Financial Services (DFS) regulates the
insurance industry in New York .
4. Licensing: A "producer" is any person licensed to sell, negotiate, or solicit insurance .
Applicants must be at least 18 years of age .
5. License Renewal: A New York insurance license is valid for a two-year term . It must be
renewed before expiration.
6. Continuing Education: Producers must complete 15 hours (some sources say 24, but
official outlines confirm 15) of approved continuing education every two years to
maintain their license .
7. Reporting Requirements: A change of address must be reported to the DFS within 30
days . A felony conviction or administrative action must also be reported within 30 days .
8. Fiduciary Responsibility: Premiums collected by a producer are held in a fiduciary
capacity and cannot be commingled with personal funds .
9. Unfair Practices: Rebating (offering inducements not in the policy)
and twisting (misrepresenting a policy to induce replacement) are prohibited unfair
trade practices .
10. Claim Handling: Insurers must acknowledge receipt of a claim within 10 business
days and must pay or deny claims promptly .
SECTION 1: LICENSING AND REGULATION (Questions 1-25)
1. Which agency in New York State is responsible for regulating insurance companies and
producers?
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A) Department of Labor
B) Department of State
C) New York State Department of Financial Services (DFS)
D) Attorney General's Office
Answer: C) New York State Department of Financial Services (DFS)
Rationale: The New York State Department of Financial Services (DFS) regulates insurance
companies, producers, and insurance activities in New York .
2. Under New York Insurance Law, which individual must be licensed to negotiate the terms of
a property-casualty insurance contract?
A) A claims adjuster
B) An insurance producer
C) A corporate accountant
D) A loss control consultant
Answer: B) An insurance producer
Rationale: Only a licensed insurance producer (agent, broker, or salesperson) may negotiate,
sell, or solicit insurance contracts in New York .
3. What is the minimum age requirement to obtain a resident insurance producer license in
New York State?
A) 16
B) 18
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C) 19
D) 21
Answer: B) 18
Rationale: According to the New York Department of Financial Services (DFS), an applicant must
be at least 18 years of age to be eligible for an insurance producer license .
4. How long is a New York insurance producer license valid before it must be renewed?
A) One year
B) Two years
C) Three years
D) Five years
Answer: B) Two years
Rationale: New York insurance licenses are issued for a two-year term and must be renewed
before expiration .
5. A licensed producer moves from Albany to Buffalo. What must the producer do to comply
with New York law?
A) File a new license application within 90 days
B) Notify the DFS of the address change within 30 days
C) Re-take the licensing exam
D) Nothing; the address change is automatic
Answer: B) Notify the DFS of the address change within 30 days
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Rationale: Licensees must report any change of address to the DFS within 30 days .
6. To maintain a property and casualty producer license in New York, how many hours of
approved continuing education (CE) must be completed every two-year renewal period?
A) 12 hours
B) 15 hours
C) 24 hours
D) 30 hours
Answer: B) 15 hours
Rationale: NYS law mandates that property and casualty producers complete 15 hours of
approved continuing education every two years (biennially) to successfully renew their license .
7. If a producer collects insurance premiums from an insured, these funds are legally
considered to be held in which type of capacity?
A) Proprietary capacity
B) Fiduciary capacity
C) Debtor capacity
D) Indenture capacity
Answer: B) Fiduciary capacity
Rationale: All premiums received by a producer are held in a fiduciary capacity. Producers are
forbidden from commingling these funds with personal or general business accounts .
8. Which action triggers the 30-day reporting requirement to the New York DFS?
NYS 17-74 Property and Casualty Insurance Laws and
Regulations EXAM QUESTIONS AND CORRECT VERIFIED
SOLUTIONS LATEST UPDATE THIS YEAR – JUST RELEASED
NYS 17-74 Property and Casualty Insurance Laws and Regulations Exam Practice Test
EXAM COVERAGE OVERVIEW (10 Key Points)
1. Exam Format: The NYS 17-74 exam consists of 50 multiple-choice questions with a 1-
hour time limit. A 70% passing score is required .
2. Exam Weighting: The exam content is divided into Insurance Regulation (33%) and New
York Laws & Regulations Pertaining to Property and Casualty Insurance (67%) .
3. Regulatory Agency: The New York Department of Financial Services (DFS) regulates the
insurance industry in New York .
4. Licensing: A "producer" is any person licensed to sell, negotiate, or solicit insurance .
Applicants must be at least 18 years of age .
5. License Renewal: A New York insurance license is valid for a two-year term . It must be
renewed before expiration.
6. Continuing Education: Producers must complete 15 hours (some sources say 24, but
official outlines confirm 15) of approved continuing education every two years to
maintain their license .
7. Reporting Requirements: A change of address must be reported to the DFS within 30
days . A felony conviction or administrative action must also be reported within 30 days .
8. Fiduciary Responsibility: Premiums collected by a producer are held in a fiduciary
capacity and cannot be commingled with personal funds .
9. Unfair Practices: Rebating (offering inducements not in the policy)
and twisting (misrepresenting a policy to induce replacement) are prohibited unfair
trade practices .
10. Claim Handling: Insurers must acknowledge receipt of a claim within 10 business
days and must pay or deny claims promptly .
SECTION 1: LICENSING AND REGULATION (Questions 1-25)
1. Which agency in New York State is responsible for regulating insurance companies and
producers?
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A) Department of Labor
B) Department of State
C) New York State Department of Financial Services (DFS)
D) Attorney General's Office
Answer: C) New York State Department of Financial Services (DFS)
Rationale: The New York State Department of Financial Services (DFS) regulates insurance
companies, producers, and insurance activities in New York .
2. Under New York Insurance Law, which individual must be licensed to negotiate the terms of
a property-casualty insurance contract?
A) A claims adjuster
B) An insurance producer
C) A corporate accountant
D) A loss control consultant
Answer: B) An insurance producer
Rationale: Only a licensed insurance producer (agent, broker, or salesperson) may negotiate,
sell, or solicit insurance contracts in New York .
3. What is the minimum age requirement to obtain a resident insurance producer license in
New York State?
A) 16
B) 18
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C) 19
D) 21
Answer: B) 18
Rationale: According to the New York Department of Financial Services (DFS), an applicant must
be at least 18 years of age to be eligible for an insurance producer license .
4. How long is a New York insurance producer license valid before it must be renewed?
A) One year
B) Two years
C) Three years
D) Five years
Answer: B) Two years
Rationale: New York insurance licenses are issued for a two-year term and must be renewed
before expiration .
5. A licensed producer moves from Albany to Buffalo. What must the producer do to comply
with New York law?
A) File a new license application within 90 days
B) Notify the DFS of the address change within 30 days
C) Re-take the licensing exam
D) Nothing; the address change is automatic
Answer: B) Notify the DFS of the address change within 30 days
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Rationale: Licensees must report any change of address to the DFS within 30 days .
6. To maintain a property and casualty producer license in New York, how many hours of
approved continuing education (CE) must be completed every two-year renewal period?
A) 12 hours
B) 15 hours
C) 24 hours
D) 30 hours
Answer: B) 15 hours
Rationale: NYS law mandates that property and casualty producers complete 15 hours of
approved continuing education every two years (biennially) to successfully renew their license .
7. If a producer collects insurance premiums from an insured, these funds are legally
considered to be held in which type of capacity?
A) Proprietary capacity
B) Fiduciary capacity
C) Debtor capacity
D) Indenture capacity
Answer: B) Fiduciary capacity
Rationale: All premiums received by a producer are held in a fiduciary capacity. Producers are
forbidden from commingling these funds with personal or general business accounts .
8. Which action triggers the 30-day reporting requirement to the New York DFS?
