NYS Life Accident and Health Insurance EXAM QUESTIONS AND ANSWERS MULTIPLE CHOICES WITH RATIONALES 2025

Which of the following would not be a requirement to obtain an Agent or Broker's license in New York? A. Be 18 years of age B. Be a resident of NY State for at least 10 years C. Complete a pre-approved insurance licensing course D. Pay applicable fees and pass required examination - Correct Ans-Answer: B. Be a resident of NY State for at least 10 years There is no time requirement for residency. An applicant must be a resident of NYS, or have a primary office of practice in NYS. In the insurance transaction, the Agent represents the interests of the: A. The insurer B. The insured C. The client D. None of the above - Correct Ans-Answer: A. The insurer The agent always represents the insurer and has the primary duty to their company. A temporary Insurance license can be issued to which of the following upon the death of an agent? A. Next of kin B. A spouse C. A only D. Both A and B - Correct Ans-Answer: D. Both A and B A temporary license can be issued to either the next of kin or a spouse for a 90 day period, after which is renewable for up to 15 months. A temporary Insurance license is initially issued for what period of time before renewal? A. 60 days B. 15 days NYS LIFE NYS LIFE C. 90 days D. 30 days - Correct Ans-Answer: C. 90 days A temporary license can be issued for a 90 day period, after which is renewable for up to 15 months. If a licensee has legally changed their name, they should notify the Superintendent's office of the legal change in name within: A. 45 days B. 30 days C. 60 days D. The office does not need to be notified - Correct Ans-Answer: B. 30 days The Superintendent's office must be notified as soon as possible, but within 30 days, of any change of name or address of a licensee. Renewal of a producer's license should take place: A. Every two years on odd numbered years on one's birth date B. Every two years on even numbered years on one's birth date C. Every two years on odd or even numbered years on one's birth date, depending on the year the licensee was born D. When the Superintendent's office notifies you of your renewal date - Correct Ans Answer: C. Every two years on odd of even numbered years on one's birth date, depending on the year the licensee was born License renewals occur on both odd and even numbered years, which is different for each licensee. The Superintendent's office will not notify a licensee that is coming up on their renewal. A successful renewal of one's insurance license in a 2 year renewal period requires completing: A. Paying a renewal fee only B. Paying a renewal fee and completing 18 credit hours of Continuing Education (CE) C. Completing 15 credit hours of CE only D. Completing 15 credit hours of CE and paying a renewal fee - Correct Ans-Answer: D. Completing 15 credit hours of CE and paying a renewal fee CE must be approved by the DFS. A domestic insurer will be examined/audited by the State Insurance Department at least once: A. In every 3 year period NYS LIFE NYS LIFE B. In every 5 year period C. A year D. Domestic companies are only examined if the Superintendent's office deems it necessary - Correct Ans-Answer: B. In every 5 year period Every insurer is required to submit their books at least once every 5 years to be examined or audited, and must keep their books and records for at least 6 years. A domestic insurer must keep certain records on file for at least: A. 5 years B. 6 years C. 2 years D. 3 years - Correct Ans-Answer: B. 6 years Certain books and records must be kept on file by every insurer for at least 6 years to be examined when and if necessary In order for an insurance company to conduct insurance business in NYS, it must receive from the Superintendent: A. A license of Authority B. An Approval of Certification C. A Certificate of Authority D. None of the above - Correct Ans-Answer: C. A Certificate of Authority The Superintendent has the right and duty to issue and approve or deny these certificates. Which would not be considered to be a "Controlled Business"? A. Insurance written on the life of the agent, where the commissions earned exceed 10% of the total commissions earned in a calendar year B. Insurance written on the lives of family members, where the commissions earned exceed 10% of the total commissions earned in a calendar year C. Insurance written on a spouse, where the commissions earned is less than 10% of the total commissions earned in a calendar year D. Insurance written on employees of a company in which the agent's spouse has more than a 50% controlling share in the business - Correct Ans-Answer: C. Insurance written on a spouse, where the commissions earned is less than 10% of the total commissions earned in a calendar year Insurance written on the agent, agent's spouse, immediate family members, or business partners cannot exceed 10% of the annual commissions. NYS LIFE NYS LIFE Insurance written for a business or employees of a company where the agent or agent's spouse holds a controlling share of the business greater than 50% cannot exceed 10% of annual commissions. Who can share commissions? A. Two agents of different companies B. Two agents of the same company who submit a life insurance application, but only one agent is life licensed C. The agent and the policy owner D. Two agents of the same company, licensed in the same line of industry - Correct Ans-Answer: D. Two agents of the same company, licensed in the same line of industry Sharing commissions is prohibited to unlicensed individuals in each specific line, those of another company, or any policy holder or prospective customers. An agent should submit any information regarding potential fraudulent activity or transaction(s) to the State Insurance Department within: A. 20 days B. 45 days C. 30 days D. 60 days - Correct Ans-Answer: C. 30 days Evidence of fraudulent activity should be report immediately, along with any supporting evidence the reporter may have or acquire legally. If a hearing has been scheduled by the Superintendent regarding a licensee who may have committed a prohibitive sales act, the licensee must receive a "Notice of Hearing" within how many days of the hearing date? A. 10 days B. 15 days C. 30 days D. 60 days - Correct Ans-Answer: A. 10 days A hearing should be scheduled for no less than 10 days after notice has been sent to the licensee. Which would not be considered a prohibited activity carried out by an agent? A. Misrepresentation B. Replacement C. Defamation D. All are prohibitive activities - Correct Ans-Answer: B. Replacement NYS LIFE NYS LIFE Replacement is not considered a prohibitive activity, however it must be done responsibly for the betterment of the client and in good faith, otherwise subject to fine violations. If an agent's license is suspended or revoked by the Superintendent, it cannot be reinstated for a minimum of _______ year(s) from the time the license is revoked. A. 2 years B. 1 year C. 3 years D. 5 years - Correct Ans-Answer: B. 1 year The minimum suspension or revocation is 1 year. The Superintendent may rule a longer period of time depending on offense. What is the maximum civil penalty that can be levied on a licensee for having engaged