NY LIFE, ACCIDENT, AND HEALTH
INSURANCE AGENT/BROKER EXAM
SERIES 17-55 QUESTIONS AND
ANSWERS
Process60210360(d-i)60-60ans-
1.60The60Superintendent60may60issue60a60license60to60any60person,60firm60or60corpora
tion60who60has60complied60with60the60requirements60of60the60Insurance60Code,60auth
orizing60the60licensee60to60act60as60agent60of60any60authorized60insurer.60Every60indiv
idual60applicant60for60a60license60under60this60section60and60every60proposed60sub-
licensee60must60be601860years60of60age60or60older60at60the60time60of60issuance60of60s
uch60license.60The60person60must60submit60to60and60pass60a60written60examination60r
equired60by60the60Superintendent.
Producer60Definition60(2101(k))60-60ans-
An60insurance60producer60means60an60insurance60agent,60insurance60broker,60reinsur
ance60intermediary,60excess60lines60broker,60or60any60other60person60required60to60be
60licensed60under60the60insurance60laws60of60this60state60to60sell,60solicit60or60negotiat
e60insurance.
Who60Should60be60Licensed60(2101(k)(1))60-60ans-
1.60The60term60"insurance60producer"60does60not60include:60An60officer,60director60or6
0employee60of60a60licensed60insurer,60fraternal60benefit60society60or60health60mainten
ance60organization60or60of60a60licensed60insurance60producer,60provided60that60the60o
fficer,60director60or60employee60does60not60receive60any60commission60on60policies60
written60or60sold60to60insure60risks60residing,60located60or60to60be60performed60in60this
60state60and:
(a)60the60officer,60director60or60employee's60activities60are60executive,60administrative,
60managerial,60clerical60or60a60combination60of60these,60and60are60only60indirectly60rel
ated60to60the60sale,60solicitation60or60negotiation60of60insurance;
(b)60the60officer,60director60or60employee's60function60relates60to60underwriting,60loss60
control,60Inspection60or60the60processing,60adjusting,60investigating60or60settling60of60a
60claim60on60a60contract60of60Insurance;60or60(c)60the60officer,60director60or60employee
,60is60acting60in60the60capacity60of60a60special60agent60or60agency60supervisor60assisti
ng60licensed60insurance60producers60where60the60person's60activities60are60limited60to
60providing60technical60advice60and60assistance60to60licensed60insurance60producers60
and60do60not60include60the60sale,60solicitation60or60negotiation60of60insurance.
Home60State60(2101(l))60-60ans-
Home60state60means60the60District60of60Columbia60or60any60state60or60territory60of60th
e60United60States60in60which60an60insurance60producer60maintains60his,60her60or60its6
0principal60place60of60residence60or60principal60place60of60business60and60is60licensed
60to60act60as60an60insurance60producer.
Negotiate60(2101(m))60-60ans-
Negotiate60or60negotiation60means60the60act60of60conferring60directly60with60or60offerin
g60advice60directly60to60a60purchaser60or60prospective60purchaser60of60a60particular60c
ontract60of60insurance60concerning60any60of60the60substantive60benefits,60terms60or60c
onditions60of60the60contract,60provided60that60the60person60engaged60in60that60act60eit
her60sells60insurance60or60obtains60insurance60from60licensed60insurers,60fraternal60be
nefit60societies60or60health60maintenance60organizations60for60purchasers.
Sell60(2101(n))60-60ans-
Sell60or60sale60means60to60exchange60a60contract60of60insurance60by60any60means,60f
or60money60or60its60equivalent,60on60behalf60of60a60licensed60insurer,60fraternal60bene
fit60society60or60health60maintenance60organization.
Solicit60(2101(o))60-60-60ans-
Solicit60or60solicitation60means60attempting60to60sell60insurance60or60asking60or60urgin
g60a60person60to60apply60for60a60particular60kind60of60insurance60from60a60particular60l
icensed60insurer,60fraternal60benefit60society60or60health60maintenance60organization.
Agent602101(a)60-60ans-
In60this60section,60insurance60agent60means60any60authorized60or60acknowledged60ag
ent60of60an60insurer,60fraternal60benefit60society60or60health60maintenance60organizati
on60issued60a60certificate60of60authority60pursuant60to60the60public60health60law,60and6
0any60sub-
agent60or60other60representative60of60such60an60agent,60who60acts60as60such60in60the
60solicitation60of,60negotiation60for,60or60sale60of,60an60insurance,60health60maintenanc
e60organization60or60annuity60contract,60other60than60as60a60licensed60insurance60brok
er.
Agent602101(k)60-60ans-
insurance60producer60means60an60insurance60agent,60insurance60broker,60reinsurance
60intermediary,60excess60lines60broker,60or60any60other60person60required60to60be60lic
ensed60under60the60insurance60laws60of60this60state60to60sell,60solicit60or60negotiate60i
nsurance.60
,The60applicant60must60be60at60least601860years60of60age60at60the60time60of60license60i
ssuance.60
An60examination60is60required60for60each60applicant,60except60where60noted60for60app
licants60with60a60change60in60residency60moving60to60New60York60(see60code60210360
below).
Brokers602101(c)60-60ans-
a60licensed60insurance60representative60who60does60not60represent60a60specific60insur
ance60company,60but60places60business60among60various60companies.60Legally,60the6
0broker60is60usually60regarded60as60a60representative60of60the60insured60rather60than6
0the60insuring60company.
Brokers602101(h)60-60ans-any60licensed60attorney60at60law60of60this60state.
Consultants60(2107)60-60ans-
The60Superintendent60may60issue60an60insurance60consultant's60license60to60any60per
son,60firm,60association60or60corporation60who60or60which60has60complied60with60the60
requirements60of60this60chapter60with60respect60to60either:60life60insurance,60meaning6
0all60of60those60kinds60of60insurance60authorized.60Any60such60license60issued60to60a6
0firm60or60association60shall60authorize60only60the60members60of60such60firm60or60ass
ociation60named60in60such60license60as60sub-
licensees60to60act60individually60as60consultants60there60under,60and60any60such60lice
nse60issued60to60a60corporation60shall60authorize60only60the60officers60and60directors6
0thereof60named60in60such60license60as60sub-
licensees60to60act60individually60as60consultants60there60under.
Adjuster602101(g)60-60ans-
The60Superintendent60may,60in60his60discretion60require60an60applicant60for60a60licens
e60under60this60section60to60present60evidence,60in60such60form60as60he60prescribes,6
0that60such60applicant60has60been60employed,60for60a60period60which60he60deems60re
asonable,60by60an60insurer,60an60independent60adjuster60or60a60public60adjuster,60in60t
he60performance60of60duties60which60in60his60opinion60would60provide60the60applicant6
0with60a60satisfactory60preliminary60training60for60the60duties60and60responsibilities60w
hich60would60evolve60upon60him60as60a60licensee60under60this60section.60The60term60i
ndependent60adjuster60means60any60person,60firm,60association60or60corporation60who
60for60money,60commission60or60any60other60thing60of60value,60acts60in60this60state60o
n60behalf60of60an60insurer60in60the60work60of60investigating60and60adjusting60claims60a
rising60under60insurance60contracts60issued60by60such60insurer60and60who60performs6
0such60duties60required60by60such60insurer60as60are60incidental60to60such60claims60an
d60also60includes60any60person60who60for60compensation60or60anything60of60value60in
vestigates60and60adjusts60claims60on60behalf60of60any60independent60adjuster.
Adjuster60210860-60ans-
Adjusters60will60be60licensed60as60either60independent60adjusters,60or60as60public60adj
, usters.60The60Superintendent60may60prescribe60the60types60of60independent60adjuster
s'60licenses60according60to60the60kind60or60kinds60of60insurance60claims60which60the60l
icensee60is60to60be60authorized60to60investigate60and60adjust.60No60adjuster60may60ac
t60on60behalf60of60an60insurer60unless60licensed60as60an60independent60adjuster,60and
60no60adjuster60may60act60on60behalf60of60an60insured60unless60licensed60as60a60publi
c60adjuster.60A60public60adjuster60works60on60behalf60of60the60insured60for60a60fee.
Nonresident602101(d)60-60ans-In60this60section,60non-
resident60insurance60agent60means60an60individual60who60is60a60non-
resident60of60this60state60and60who60is60licensed60or60authorized60to60act60as60an60ins
urance60agent60in60the60state60in60which60he60resides,60or60in60which60he60or60the60fir
m60or60association60of60which60he60is60a60member60or60employee,60or60the60corporati
on,60of60which60he60is60an60officer,60director,60or60employee60maintains60an60office60a
s60an60insurance60agent.
Nonresident602101(e)60-60ans-In60this60section,60"non-
resident60insurance60broker",60means60an60individual60who60is60a60non-
resident60of60this60state60and60who60is60licensed60or60authorized60to60act60as60an60ins
urance60broker60in60the60state60in60which60he60resides,60or60in60which60he,60or60the60f
irm60or60association60of60which60he60is60a60member60or60employee,60or60the60corpora
tion,60of60which60he60is60an60officer,60director60or60employee60maintains60an60office60a
s60an60insurance60broker.
Nonresident602103(g)(5)60-60ans-
In60the60discretion60of60the60Superintendent,60no60written60insurance60examination60wi
ll60be60required60of60any60individual60seeking60to60be60named60as60a60licensee60or60s
ub-licensee60who60is60a60non-resident60insurance60agent.
Nonresident602103(g)(11)60-60ans-
No60written60insurance60examination60will60be60required60of60any60individual60who60ap
plies60for60an60insurance60agent60license60in60this60state60who60was60previously60licen
sed60for60the60same60line60or60lines60of60authority60in60another60state,60provided,60ho
wever,60that60the60applicant's60home60state60grants60non-
resident60licenses60to60residents60of60this60state60on60the60same60basis.60Such60indivi
dual60shall60also60not60be60required60to60complete60any60prelicensing60education.60Thi
s60exemption60is60only60available60if60the60person60is60currently60licensed60in60that60st
ate60or60if60the60application60is60received60within609060days60of60the60date60of60cancel
lation60of60the60applicant's60previous60license60and60if60the60prior60state60issues60a60c
ertification60that,60at60the60time60of60cancellation,60the60applicant60was60in60good60sta
nding60in60that60state60or60the60state's60producer60database60records,60maintained60by
60the60National60Association60of60Insurance60Commissioners,60its60affiliates60or60subsi
diaries60indicate60that60the60producer60is60or60was60licensed60in60good60standing60for6
0the60line60of60authority60requested.60An60individual60or60entity60licensed60in60another6
0state60that60moves60to60this60state60must60make60an60application60within609060days60
INSURANCE AGENT/BROKER EXAM
SERIES 17-55 QUESTIONS AND
ANSWERS
Process60210360(d-i)60-60ans-
1.60The60Superintendent60may60issue60a60license60to60any60person,60firm60or60corpora
tion60who60has60complied60with60the60requirements60of60the60Insurance60Code,60auth
orizing60the60licensee60to60act60as60agent60of60any60authorized60insurer.60Every60indiv
idual60applicant60for60a60license60under60this60section60and60every60proposed60sub-
licensee60must60be601860years60of60age60or60older60at60the60time60of60issuance60of60s
uch60license.60The60person60must60submit60to60and60pass60a60written60examination60r
equired60by60the60Superintendent.
Producer60Definition60(2101(k))60-60ans-
An60insurance60producer60means60an60insurance60agent,60insurance60broker,60reinsur
ance60intermediary,60excess60lines60broker,60or60any60other60person60required60to60be
60licensed60under60the60insurance60laws60of60this60state60to60sell,60solicit60or60negotiat
e60insurance.
Who60Should60be60Licensed60(2101(k)(1))60-60ans-
1.60The60term60"insurance60producer"60does60not60include:60An60officer,60director60or6
0employee60of60a60licensed60insurer,60fraternal60benefit60society60or60health60mainten
ance60organization60or60of60a60licensed60insurance60producer,60provided60that60the60o
fficer,60director60or60employee60does60not60receive60any60commission60on60policies60
written60or60sold60to60insure60risks60residing,60located60or60to60be60performed60in60this
60state60and:
(a)60the60officer,60director60or60employee's60activities60are60executive,60administrative,
60managerial,60clerical60or60a60combination60of60these,60and60are60only60indirectly60rel
ated60to60the60sale,60solicitation60or60negotiation60of60insurance;
(b)60the60officer,60director60or60employee's60function60relates60to60underwriting,60loss60
control,60Inspection60or60the60processing,60adjusting,60investigating60or60settling60of60a
60claim60on60a60contract60of60Insurance;60or60(c)60the60officer,60director60or60employee
,60is60acting60in60the60capacity60of60a60special60agent60or60agency60supervisor60assisti
ng60licensed60insurance60producers60where60the60person's60activities60are60limited60to
60providing60technical60advice60and60assistance60to60licensed60insurance60producers60
and60do60not60include60the60sale,60solicitation60or60negotiation60of60insurance.
Home60State60(2101(l))60-60ans-
Home60state60means60the60District60of60Columbia60or60any60state60or60territory60of60th
e60United60States60in60which60an60insurance60producer60maintains60his,60her60or60its6
0principal60place60of60residence60or60principal60place60of60business60and60is60licensed
60to60act60as60an60insurance60producer.
Negotiate60(2101(m))60-60ans-
Negotiate60or60negotiation60means60the60act60of60conferring60directly60with60or60offerin
g60advice60directly60to60a60purchaser60or60prospective60purchaser60of60a60particular60c
ontract60of60insurance60concerning60any60of60the60substantive60benefits,60terms60or60c
onditions60of60the60contract,60provided60that60the60person60engaged60in60that60act60eit
her60sells60insurance60or60obtains60insurance60from60licensed60insurers,60fraternal60be
nefit60societies60or60health60maintenance60organizations60for60purchasers.
Sell60(2101(n))60-60ans-
Sell60or60sale60means60to60exchange60a60contract60of60insurance60by60any60means,60f
or60money60or60its60equivalent,60on60behalf60of60a60licensed60insurer,60fraternal60bene
fit60society60or60health60maintenance60organization.
Solicit60(2101(o))60-60-60ans-
Solicit60or60solicitation60means60attempting60to60sell60insurance60or60asking60or60urgin
g60a60person60to60apply60for60a60particular60kind60of60insurance60from60a60particular60l
icensed60insurer,60fraternal60benefit60society60or60health60maintenance60organization.
Agent602101(a)60-60ans-
In60this60section,60insurance60agent60means60any60authorized60or60acknowledged60ag
ent60of60an60insurer,60fraternal60benefit60society60or60health60maintenance60organizati
on60issued60a60certificate60of60authority60pursuant60to60the60public60health60law,60and6
0any60sub-
agent60or60other60representative60of60such60an60agent,60who60acts60as60such60in60the
60solicitation60of,60negotiation60for,60or60sale60of,60an60insurance,60health60maintenanc
e60organization60or60annuity60contract,60other60than60as60a60licensed60insurance60brok
er.
Agent602101(k)60-60ans-
insurance60producer60means60an60insurance60agent,60insurance60broker,60reinsurance
60intermediary,60excess60lines60broker,60or60any60other60person60required60to60be60lic
ensed60under60the60insurance60laws60of60this60state60to60sell,60solicit60or60negotiate60i
nsurance.60
,The60applicant60must60be60at60least601860years60of60age60at60the60time60of60license60i
ssuance.60
An60examination60is60required60for60each60applicant,60except60where60noted60for60app
licants60with60a60change60in60residency60moving60to60New60York60(see60code60210360
below).
Brokers602101(c)60-60ans-
a60licensed60insurance60representative60who60does60not60represent60a60specific60insur
ance60company,60but60places60business60among60various60companies.60Legally,60the6
0broker60is60usually60regarded60as60a60representative60of60the60insured60rather60than6
0the60insuring60company.
Brokers602101(h)60-60ans-any60licensed60attorney60at60law60of60this60state.
Consultants60(2107)60-60ans-
The60Superintendent60may60issue60an60insurance60consultant's60license60to60any60per
son,60firm,60association60or60corporation60who60or60which60has60complied60with60the60
requirements60of60this60chapter60with60respect60to60either:60life60insurance,60meaning6
0all60of60those60kinds60of60insurance60authorized.60Any60such60license60issued60to60a6
0firm60or60association60shall60authorize60only60the60members60of60such60firm60or60ass
ociation60named60in60such60license60as60sub-
licensees60to60act60individually60as60consultants60there60under,60and60any60such60lice
nse60issued60to60a60corporation60shall60authorize60only60the60officers60and60directors6
0thereof60named60in60such60license60as60sub-
licensees60to60act60individually60as60consultants60there60under.
Adjuster602101(g)60-60ans-
The60Superintendent60may,60in60his60discretion60require60an60applicant60for60a60licens
e60under60this60section60to60present60evidence,60in60such60form60as60he60prescribes,6
0that60such60applicant60has60been60employed,60for60a60period60which60he60deems60re
asonable,60by60an60insurer,60an60independent60adjuster60or60a60public60adjuster,60in60t
he60performance60of60duties60which60in60his60opinion60would60provide60the60applicant6
0with60a60satisfactory60preliminary60training60for60the60duties60and60responsibilities60w
hich60would60evolve60upon60him60as60a60licensee60under60this60section.60The60term60i
ndependent60adjuster60means60any60person,60firm,60association60or60corporation60who
60for60money,60commission60or60any60other60thing60of60value,60acts60in60this60state60o
n60behalf60of60an60insurer60in60the60work60of60investigating60and60adjusting60claims60a
rising60under60insurance60contracts60issued60by60such60insurer60and60who60performs6
0such60duties60required60by60such60insurer60as60are60incidental60to60such60claims60an
d60also60includes60any60person60who60for60compensation60or60anything60of60value60in
vestigates60and60adjusts60claims60on60behalf60of60any60independent60adjuster.
Adjuster60210860-60ans-
Adjusters60will60be60licensed60as60either60independent60adjusters,60or60as60public60adj
, usters.60The60Superintendent60may60prescribe60the60types60of60independent60adjuster
s'60licenses60according60to60the60kind60or60kinds60of60insurance60claims60which60the60l
icensee60is60to60be60authorized60to60investigate60and60adjust.60No60adjuster60may60ac
t60on60behalf60of60an60insurer60unless60licensed60as60an60independent60adjuster,60and
60no60adjuster60may60act60on60behalf60of60an60insured60unless60licensed60as60a60publi
c60adjuster.60A60public60adjuster60works60on60behalf60of60the60insured60for60a60fee.
Nonresident602101(d)60-60ans-In60this60section,60non-
resident60insurance60agent60means60an60individual60who60is60a60non-
resident60of60this60state60and60who60is60licensed60or60authorized60to60act60as60an60ins
urance60agent60in60the60state60in60which60he60resides,60or60in60which60he60or60the60fir
m60or60association60of60which60he60is60a60member60or60employee,60or60the60corporati
on,60of60which60he60is60an60officer,60director,60or60employee60maintains60an60office60a
s60an60insurance60agent.
Nonresident602101(e)60-60ans-In60this60section,60"non-
resident60insurance60broker",60means60an60individual60who60is60a60non-
resident60of60this60state60and60who60is60licensed60or60authorized60to60act60as60an60ins
urance60broker60in60the60state60in60which60he60resides,60or60in60which60he,60or60the60f
irm60or60association60of60which60he60is60a60member60or60employee,60or60the60corpora
tion,60of60which60he60is60an60officer,60director60or60employee60maintains60an60office60a
s60an60insurance60broker.
Nonresident602103(g)(5)60-60ans-
In60the60discretion60of60the60Superintendent,60no60written60insurance60examination60wi
ll60be60required60of60any60individual60seeking60to60be60named60as60a60licensee60or60s
ub-licensee60who60is60a60non-resident60insurance60agent.
Nonresident602103(g)(11)60-60ans-
No60written60insurance60examination60will60be60required60of60any60individual60who60ap
plies60for60an60insurance60agent60license60in60this60state60who60was60previously60licen
sed60for60the60same60line60or60lines60of60authority60in60another60state,60provided,60ho
wever,60that60the60applicant's60home60state60grants60non-
resident60licenses60to60residents60of60this60state60on60the60same60basis.60Such60indivi
dual60shall60also60not60be60required60to60complete60any60prelicensing60education.60Thi
s60exemption60is60only60available60if60the60person60is60currently60licensed60in60that60st
ate60or60if60the60application60is60received60within609060days60of60the60date60of60cancel
lation60of60the60applicant's60previous60license60and60if60the60prior60state60issues60a60c
ertification60that,60at60the60time60of60cancellation,60the60applicant60was60in60good60sta
nding60in60that60state60or60the60state's60producer60database60records,60maintained60by
60the60National60Association60of60Insurance60Commissioners,60its60affiliates60or60subsi
diaries60indicate60that60the60producer60is60or60was60licensed60in60good60standing60for6
0the60line60of60authority60requested.60An60individual60or60entity60licensed60in60another6
0state60that60moves60to60this60state60must60make60an60application60within609060days60
