New York Life Insurance Licensing Exam: Complete
Practice Questions & Answers latest update
2026/2027 | Instant Pdf Download
This comprehensive practice exam is designed to help you prepare for the New York State
Life Insurance Licensing Examination administered by PSI Services. The exam consists
of Actual questions (including 5 pretest questions) with a 2-hour time limit. A passing
score is required to obtain your license.
SECTION 1: Licensing & Definitions (Questions 1-15)
1. According to NY Insurance Law §2101(k), an "insurance producer" includes all of
the following EXCEPT:
A) An insurance agent
B) An insurance broker
C) A clerical employee who does not receive commissions
D) A reinsurance intermediary
Rationale: NY Insurance Law §2101(k) defines an insurance producer as an agent, broker,
reinsurance intermediary, excess lines broker, or any other person required to be licensed.
Clerical employees who do not receive commissions are specifically excluded from this
definition.
2. Under NY law, "negotiate" or "negotiation" means:
A) Exchanging a contract of insurance for money
B) Attempting to sell insurance or urging a person to apply for insurance
C) Conferring directly with a purchaser about the substantive benefits, terms, or
conditions of an insurance contract
D) Adjusting claims on behalf of an insurer
Rationale: NY Insurance Law §2101(m) defines negotiation as the act of conferring directly
with or offering advice directly to a purchaser concerning any of the substantive benefits,
terms, or conditions of the contract.
,3. What is the minimum age requirement for an individual applying for an insurance
license in New York?
A) 16 years
B) 18 years
C) 21 years
D) 25 years
Rationale: Under NY Insurance Law §2103, every individual applicant for a license must be
18 years of age or older at the time of license issuance.
4. When a licensed insurance agent moves from another state to New York, how
many days do they have to apply for a resident license without retaking the
examination?
A) 30 days
B) 60 days
C) 90 days
D) 120 days
Rationale: NY Insurance Law §2103(g)(11) allows an individual licensed in another state
who moves to New York to apply within 90 days of establishing legal residence to become a
resident licensee without retaking the exam for lines previously held.
5. An insurance consultant license in New York:
A) Allows the holder to sell insurance policies directly to consumers
B) Allows the holder to provide advice about insurance for a fee without selling
policies
C) Is only available to attorneys
D) Does not require a written examination
Rationale: Under NY Insurance Law §2107, the Superintendent may issue an insurance
consultant's license to persons who provide advice for a fee and do not sell insurance
policies.
,6. A business entity seeking an insurance agent's license must:
A) Have all employees licensed as agents
B) Designate sub-licensee(s) responsible for compliance with insurance laws
C) Maintain a $1 million bond
D) Be incorporated in New York only
Rationale: NY Insurance Law §2103(e) requires that for each business entity, the sub-
licensee or sub-licensees named in the application must be designated responsible for the
business entity's compliance with insurance laws.
7. What is the continuing education (CE) requirement for licensed agents in New
York?
A) 10 credits biennially
B) 15 credits per biennial licensing period
C) 20 credits annually
D) No CE requirement
Rationale: Resident licensees including agents, brokers, and consultants must complete 15
credits of approved continuing education during each biennial licensing period as a
condition of renewal.
8. Licensees must notify the Superintendent of a change of address within:
A) 10 days
B) 30 days
C) 60 days
D) 90 days
Rationale: Under NY Insurance Law §2134, licensees must inform the Superintendent of a
change of business or residence address within 30 days of the change.
9. A "nonresident insurance agent" is defined as:
A) An agent who sells policies only outside of New York
B) An individual who is a nonresident of New York but licensed in their home state
, C) Any agent who does not maintain a physical office
D) An agent who only handles out-of-state risks
Rationale: NY Insurance Law §2101(d) defines a non-resident insurance agent as an
individual who is a non-resident of New York and who is licensed or authorized to act as an
insurance agent in the state in which they reside.
10. Under the reciprocity provision (NY Ins. Law §2136), the Superintendent shall
waive requirements for a nonresident license applicant if:
A) The applicant has passed a New York-specific exam
B) The applicant has a current and valid license in their home state and is in good
standing
C) The applicant has completed 40 hours of prelicensing education
D) The applicant has been licensed for at least 5 years
Rationale: NY Insurance Law §2136 mandates reciprocity if the applicant has a current and
valid license in their home state, is in good standing, has paid required fees, and their home
state offers similar reciprocity to New York residents.
11. What is the license renewal period for a New York insurance agent?
A) Every year
B) Every 2 years (biennial)
C) Every 3 years
D) Every 5 years
Rationale: New York insurance licenses are renewed biennially (every 2 years). Licenses
expire on the agent's birthday in odd or even years depending on birth year.
12. A licensed attorney at law in New York, under §2101(h), may act as:
A) A public adjuster
B) A consultant
C) A broker
D) An agent
Practice Questions & Answers latest update
2026/2027 | Instant Pdf Download
This comprehensive practice exam is designed to help you prepare for the New York State
Life Insurance Licensing Examination administered by PSI Services. The exam consists
of Actual questions (including 5 pretest questions) with a 2-hour time limit. A passing
score is required to obtain your license.
SECTION 1: Licensing & Definitions (Questions 1-15)
1. According to NY Insurance Law §2101(k), an "insurance producer" includes all of
the following EXCEPT:
A) An insurance agent
B) An insurance broker
C) A clerical employee who does not receive commissions
D) A reinsurance intermediary
Rationale: NY Insurance Law §2101(k) defines an insurance producer as an agent, broker,
reinsurance intermediary, excess lines broker, or any other person required to be licensed.
Clerical employees who do not receive commissions are specifically excluded from this
definition.
2. Under NY law, "negotiate" or "negotiation" means:
A) Exchanging a contract of insurance for money
B) Attempting to sell insurance or urging a person to apply for insurance
C) Conferring directly with a purchaser about the substantive benefits, terms, or
conditions of an insurance contract
D) Adjusting claims on behalf of an insurer
Rationale: NY Insurance Law §2101(m) defines negotiation as the act of conferring directly
with or offering advice directly to a purchaser concerning any of the substantive benefits,
terms, or conditions of the contract.
,3. What is the minimum age requirement for an individual applying for an insurance
license in New York?
A) 16 years
B) 18 years
C) 21 years
D) 25 years
Rationale: Under NY Insurance Law §2103, every individual applicant for a license must be
18 years of age or older at the time of license issuance.
4. When a licensed insurance agent moves from another state to New York, how
many days do they have to apply for a resident license without retaking the
examination?
A) 30 days
B) 60 days
C) 90 days
D) 120 days
Rationale: NY Insurance Law §2103(g)(11) allows an individual licensed in another state
who moves to New York to apply within 90 days of establishing legal residence to become a
resident licensee without retaking the exam for lines previously held.
5. An insurance consultant license in New York:
A) Allows the holder to sell insurance policies directly to consumers
B) Allows the holder to provide advice about insurance for a fee without selling
policies
C) Is only available to attorneys
D) Does not require a written examination
Rationale: Under NY Insurance Law §2107, the Superintendent may issue an insurance
consultant's license to persons who provide advice for a fee and do not sell insurance
policies.
,6. A business entity seeking an insurance agent's license must:
A) Have all employees licensed as agents
B) Designate sub-licensee(s) responsible for compliance with insurance laws
C) Maintain a $1 million bond
D) Be incorporated in New York only
Rationale: NY Insurance Law §2103(e) requires that for each business entity, the sub-
licensee or sub-licensees named in the application must be designated responsible for the
business entity's compliance with insurance laws.
7. What is the continuing education (CE) requirement for licensed agents in New
York?
A) 10 credits biennially
B) 15 credits per biennial licensing period
C) 20 credits annually
D) No CE requirement
Rationale: Resident licensees including agents, brokers, and consultants must complete 15
credits of approved continuing education during each biennial licensing period as a
condition of renewal.
8. Licensees must notify the Superintendent of a change of address within:
A) 10 days
B) 30 days
C) 60 days
D) 90 days
Rationale: Under NY Insurance Law §2134, licensees must inform the Superintendent of a
change of business or residence address within 30 days of the change.
9. A "nonresident insurance agent" is defined as:
A) An agent who sells policies only outside of New York
B) An individual who is a nonresident of New York but licensed in their home state
, C) Any agent who does not maintain a physical office
D) An agent who only handles out-of-state risks
Rationale: NY Insurance Law §2101(d) defines a non-resident insurance agent as an
individual who is a non-resident of New York and who is licensed or authorized to act as an
insurance agent in the state in which they reside.
10. Under the reciprocity provision (NY Ins. Law §2136), the Superintendent shall
waive requirements for a nonresident license applicant if:
A) The applicant has passed a New York-specific exam
B) The applicant has a current and valid license in their home state and is in good
standing
C) The applicant has completed 40 hours of prelicensing education
D) The applicant has been licensed for at least 5 years
Rationale: NY Insurance Law §2136 mandates reciprocity if the applicant has a current and
valid license in their home state, is in good standing, has paid required fees, and their home
state offers similar reciprocity to New York residents.
11. What is the license renewal period for a New York insurance agent?
A) Every year
B) Every 2 years (biennial)
C) Every 3 years
D) Every 5 years
Rationale: New York insurance licenses are renewed biennially (every 2 years). Licenses
expire on the agent's birthday in odd or even years depending on birth year.
12. A licensed attorney at law in New York, under §2101(h), may act as:
A) A public adjuster
B) A consultant
C) A broker
D) An agent
