NYS 17-74 Property and Casualty Insurance Laws and
Regulations Exam Prep Document | 2026/2027 Edition | 200
Verified Questions - 189 Questions with Answers
NYS 17-74 Property and Casualty Insurance Laws and Regulations Exam 2026-189 QUESTIONS AND ANSWERS
ALREADY GRADED A+. 100% Verified Solutions | Updated Per Latest Guidelines | Graded A+
This comprehensive exam preparation document is meticulously designed for candidates preparing for
the New York State 17-74 Property and Casualty Insurance Licensing Examination. It features 200
verified questions and answers with detailed rationales, covering all essential topics as per the
2026/2027 syllabus. The content is organized to facilitate systematic study, ensuring a thorough
understanding of New York-specific insurance laws, regulations, and ethical practices. Each question is
accompanied by a clear rationale to reinforce learning and application.
Key Features:
Introduction to Property and Casualty Insurance: Principles, concepts, and terminology
New York Insurance Law and Regulation: State-specific statutes, regulations, and department rules
Insurance Contracts: Elements, provisions, and legal doctrines
Property Insurance: Dwelling, homeowners, commercial property, and business interruption
Casualty Insurance: General liability, auto, workers' compensation, and commercial umbrella
Commercial Lines: Package policies, business auto, and inland marine
Personal Lines: Homeowners, personal auto, and personal umbrella
Underwriting and Risk Management: Selection, classification, and risk assessment
Claims Handling: Procedures, investigation, and settlement
Ethics and Professional Responsibility: Fiduciary duties, fair practices, and consumer protection
New York Specific Endorsements and Exclusions: Mandatory and optional coverages
Regulatory Compliance: Licensing, continuing education, and market conduct
Insurance Fraud and Prevention: Detection, reporting, and legal implications
Consumer Protections: Cancellation, nonrenewal, and privacy laws
Examination Strategies and Test-Taking Tips
Updates for 2026:
- Updated to reflect the latest New York State Insurance Department regulations for 2026-2027
- Incorporated recent legislative changes affecting property and casualty insurance
- Revised rationales to align with current legal interpretations and exam standards
- Added new questions on emerging topics such as cyber liability and climate-related risks
- Enhanced coverage of ethical scenarios and compliance requirements
Abstract:
This exam preparation document offers a rigorous and comprehensive review of New York State Property and
Casualty Insurance Laws and Regulations, specifically tailored for the 17-74 licensing examination. With 200
verified questions and detailed rationales, it systematically addresses the core areas of property and casualty
insurance, including contract law, policy provisions, underwriting, claims, and regulatory compliance. The content
is grounded in the latest 2026/2027 New York State guidelines, ensuring that candidates are well-prepared for the
current exam format. Each question is designed to test not only recall but also application of concepts in
real-world scenarios, fostering a deep understanding of the material. The document also emphasizes ethical
practices and consumer protection, which are integral to the insurance profession. By working through these
questions, candidates can identify their strengths and weaknesses, build confidence, and achieve a high score on
Page 1
,the licensing exam.
Keywords:
NYS 17-74, Property and Casualty Insurance, New York Insurance Law, Licensing Exam Prep, Verified Questions,
Rationales, 2026-2027, Regulatory Compliance
Answer Format:
Each question is presented in multiple-choice format with four options. The correct answer is clearly indicated,
followed by a detailed rationale explaining why it is correct and why the other options are incorrect. Rationales are
concise yet comprehensive, referencing relevant laws, regulations, and insurance principles.
Compliance Checklist:
All questions align with the New York State Department of Financial Services (DFS) licensing requirements
Content reflects the latest 2026/2027 exam syllabus and regulatory updates
Rationales are verified by subject matter experts and cross-referenced with official sources
Questions cover all major domains and subtopics as specified in the exam blueprint
The document is formatted for easy navigation and self-assessment
Content Area Overview:
Content Area Questions Key Topics Weight
Principles of Insurance and 1-20 Risk management, insurable interest, 10%
Contracts indemnity, contract elements
New York Insurance Law and 21-50 DFS regulations, licensing, producer duties, 15%
Regulation consumer protections
Property Insurance 51-80 Dwelling, homeowners, commercial 15%
property, business income
Casualty Insurance 81-110 General liability, auto, workers' 15%
compensation, umbrella
Commercial Lines 111-130 Package policies, business auto, inland 10%
marine, crime
Personal Lines 131-150 Homeowners, personal auto, personal 10%
umbrella
Underwriting and Risk 151-165 Selection, classification, risk assessment, 8%
Management loss control
Claims Handling 166-180 Investigation, evaluation, settlement, 8%
subrogation
Ethics and Professional 181-190 Fiduciary duties, fair practices, fraud 5%
Responsibility prevention
Regulatory Compliance and 191-200 Cancellation, nonrenewal, privacy, market 4%
Consumer Protections conduct
Page 2
,Q1. Under New York Insurance Law § 3425, which of the following is NOT a
permissible reason for an insurer to non-renew a personal lines automobile insurance
policy?
A. The insured has had a driver's license suspended in the past 39 months
B. The insured has filed more than two comprehensive claims in a three-year period
C. The insurer is reducing its writings in the state by more than 2% of its insured
vehicles
D. The insured has been convicted of a felony involving a motor vehicle
Correct Answer: C. The insurer is reducing its writings in the state by more than 2%
of its insured vehicles
Rationale: New York Insurance Law § 3425 strictly limits non-renewal of personal
automobile policies. An insurer may non-renew for specific underwriting reasons such as
license suspension, excessive claims, or felony convictions. However, reducing statewide
writings by more than 2% is not a permissible reason; such market withdrawal requires
prior approval and is not a simple non-renewal ground.
Why Wrong:
A - License suspension is a specific statutory ground for non-renewal.
B - Excessive claims, including comprehensive, can justify non-renewal.
D - Felony motor vehicle conviction is a statutory ground for non-renewal.
Reference: N.Y. Ins. Law § 3425; NYCRR Title 11
Q2. An insurer plans to use a credit-based insurance score as a rating factor for
private passenger auto policies. Under New York law, which of the following
conditions must be met?
A. The insurer must obtain the insured's written consent before using the score
B. The insurer must notify the insured that the score was used and allow the insured to
dispute the score
C. The insurer must file the scoring model with the Department of Financial Services
and receive approval
D. The insurer may use the score only if it does not constitute the sole basis for denial
or non-renewal
Correct Answer: B. The insurer must notify the insured that the score was used and
allow the insured to dispute the score
Rationale: New York Insurance Law § 2604 and Regulation 182 require insurers that use
credit information to provide adverse action notices and disclose the specific reasons,
including the credit score, to the insured. The insured must have an opportunity to dispute
the accuracy of the credit information. Filing of the scoring model is not required, and
consent is not mandated.
Page 3
, Why Wrong:
A - Written consent is not required under New York law.
C - The scoring model does not require regulatory approval, only the use must comply
with notice requirements.
D - Credit scores cannot be the sole basis for denial or non-renewal, but this is not the
only condition; notice and dispute rights are also required.
Reference: N.Y. Ins. Law § 2604; 11 NYCRR 182
Q3. A property insurer issues a policy with a provision that excludes coverage for
losses caused by 'earth movement.' The insured experiences a mudslide that is
triggered by a fire that started on the insured's property. Under the doctrine of
efficient proximate cause, which of the following is the most likely outcome?
A. The loss is excluded because earth movement is a named peril
B. The loss is covered because the fire is the efficient proximate cause and the
mudslide is a consequence
C. The loss is excluded because the policy has a concurrent causation clause that
excludes all earth movement losses
D. The loss is covered only if the policy includes a 'landslide' endorsement
Correct Answer: B. The loss is covered because the fire is the efficient proximate
cause and the mudslide is a consequence
Rationale: Under the efficient proximate cause doctrine, if a covered peril (fire) sets off a
chain of events leading to a loss from an excluded peril (earth movement), the loss is
covered if the covered peril is the dominant cause. The mudslide is a result of the fire, so
the loss is covered. A concurrent causation clause may negate this doctrine unless it is
unambiguous, but in New York, the efficient proximate cause doctrine is applied in favor of
coverage.
Why Wrong:
A - The exclusion applies but the fire is the efficient proximate cause.
C - A concurrent causation clause may be unenforceable if it conflicts with the
efficient proximate cause doctrine.
D - An endorsement is not needed because the fire is the covered cause.
Reference: N.Y. Ins. Law § 3404; Case law on efficient proximate cause
Q4. Under New York's regulation of excess and surplus lines insurance, which of the
following statements is correct regarding the placement of a risk with an
unauthorized insurer?
A. The broker must first attempt to place the risk with three authorized insurers and
obtain declinations
B. The broker must file the policy with the Excess Line Association of New York
Page 4
Regulations Exam Prep Document | 2026/2027 Edition | 200
Verified Questions - 189 Questions with Answers
NYS 17-74 Property and Casualty Insurance Laws and Regulations Exam 2026-189 QUESTIONS AND ANSWERS
ALREADY GRADED A+. 100% Verified Solutions | Updated Per Latest Guidelines | Graded A+
This comprehensive exam preparation document is meticulously designed for candidates preparing for
the New York State 17-74 Property and Casualty Insurance Licensing Examination. It features 200
verified questions and answers with detailed rationales, covering all essential topics as per the
2026/2027 syllabus. The content is organized to facilitate systematic study, ensuring a thorough
understanding of New York-specific insurance laws, regulations, and ethical practices. Each question is
accompanied by a clear rationale to reinforce learning and application.
Key Features:
Introduction to Property and Casualty Insurance: Principles, concepts, and terminology
New York Insurance Law and Regulation: State-specific statutes, regulations, and department rules
Insurance Contracts: Elements, provisions, and legal doctrines
Property Insurance: Dwelling, homeowners, commercial property, and business interruption
Casualty Insurance: General liability, auto, workers' compensation, and commercial umbrella
Commercial Lines: Package policies, business auto, and inland marine
Personal Lines: Homeowners, personal auto, and personal umbrella
Underwriting and Risk Management: Selection, classification, and risk assessment
Claims Handling: Procedures, investigation, and settlement
Ethics and Professional Responsibility: Fiduciary duties, fair practices, and consumer protection
New York Specific Endorsements and Exclusions: Mandatory and optional coverages
Regulatory Compliance: Licensing, continuing education, and market conduct
Insurance Fraud and Prevention: Detection, reporting, and legal implications
Consumer Protections: Cancellation, nonrenewal, and privacy laws
Examination Strategies and Test-Taking Tips
Updates for 2026:
- Updated to reflect the latest New York State Insurance Department regulations for 2026-2027
- Incorporated recent legislative changes affecting property and casualty insurance
- Revised rationales to align with current legal interpretations and exam standards
- Added new questions on emerging topics such as cyber liability and climate-related risks
- Enhanced coverage of ethical scenarios and compliance requirements
Abstract:
This exam preparation document offers a rigorous and comprehensive review of New York State Property and
Casualty Insurance Laws and Regulations, specifically tailored for the 17-74 licensing examination. With 200
verified questions and detailed rationales, it systematically addresses the core areas of property and casualty
insurance, including contract law, policy provisions, underwriting, claims, and regulatory compliance. The content
is grounded in the latest 2026/2027 New York State guidelines, ensuring that candidates are well-prepared for the
current exam format. Each question is designed to test not only recall but also application of concepts in
real-world scenarios, fostering a deep understanding of the material. The document also emphasizes ethical
practices and consumer protection, which are integral to the insurance profession. By working through these
questions, candidates can identify their strengths and weaknesses, build confidence, and achieve a high score on
Page 1
,the licensing exam.
Keywords:
NYS 17-74, Property and Casualty Insurance, New York Insurance Law, Licensing Exam Prep, Verified Questions,
Rationales, 2026-2027, Regulatory Compliance
Answer Format:
Each question is presented in multiple-choice format with four options. The correct answer is clearly indicated,
followed by a detailed rationale explaining why it is correct and why the other options are incorrect. Rationales are
concise yet comprehensive, referencing relevant laws, regulations, and insurance principles.
Compliance Checklist:
All questions align with the New York State Department of Financial Services (DFS) licensing requirements
Content reflects the latest 2026/2027 exam syllabus and regulatory updates
Rationales are verified by subject matter experts and cross-referenced with official sources
Questions cover all major domains and subtopics as specified in the exam blueprint
The document is formatted for easy navigation and self-assessment
Content Area Overview:
Content Area Questions Key Topics Weight
Principles of Insurance and 1-20 Risk management, insurable interest, 10%
Contracts indemnity, contract elements
New York Insurance Law and 21-50 DFS regulations, licensing, producer duties, 15%
Regulation consumer protections
Property Insurance 51-80 Dwelling, homeowners, commercial 15%
property, business income
Casualty Insurance 81-110 General liability, auto, workers' 15%
compensation, umbrella
Commercial Lines 111-130 Package policies, business auto, inland 10%
marine, crime
Personal Lines 131-150 Homeowners, personal auto, personal 10%
umbrella
Underwriting and Risk 151-165 Selection, classification, risk assessment, 8%
Management loss control
Claims Handling 166-180 Investigation, evaluation, settlement, 8%
subrogation
Ethics and Professional 181-190 Fiduciary duties, fair practices, fraud 5%
Responsibility prevention
Regulatory Compliance and 191-200 Cancellation, nonrenewal, privacy, market 4%
Consumer Protections conduct
Page 2
,Q1. Under New York Insurance Law § 3425, which of the following is NOT a
permissible reason for an insurer to non-renew a personal lines automobile insurance
policy?
A. The insured has had a driver's license suspended in the past 39 months
B. The insured has filed more than two comprehensive claims in a three-year period
C. The insurer is reducing its writings in the state by more than 2% of its insured
vehicles
D. The insured has been convicted of a felony involving a motor vehicle
Correct Answer: C. The insurer is reducing its writings in the state by more than 2%
of its insured vehicles
Rationale: New York Insurance Law § 3425 strictly limits non-renewal of personal
automobile policies. An insurer may non-renew for specific underwriting reasons such as
license suspension, excessive claims, or felony convictions. However, reducing statewide
writings by more than 2% is not a permissible reason; such market withdrawal requires
prior approval and is not a simple non-renewal ground.
Why Wrong:
A - License suspension is a specific statutory ground for non-renewal.
B - Excessive claims, including comprehensive, can justify non-renewal.
D - Felony motor vehicle conviction is a statutory ground for non-renewal.
Reference: N.Y. Ins. Law § 3425; NYCRR Title 11
Q2. An insurer plans to use a credit-based insurance score as a rating factor for
private passenger auto policies. Under New York law, which of the following
conditions must be met?
A. The insurer must obtain the insured's written consent before using the score
B. The insurer must notify the insured that the score was used and allow the insured to
dispute the score
C. The insurer must file the scoring model with the Department of Financial Services
and receive approval
D. The insurer may use the score only if it does not constitute the sole basis for denial
or non-renewal
Correct Answer: B. The insurer must notify the insured that the score was used and
allow the insured to dispute the score
Rationale: New York Insurance Law § 2604 and Regulation 182 require insurers that use
credit information to provide adverse action notices and disclose the specific reasons,
including the credit score, to the insured. The insured must have an opportunity to dispute
the accuracy of the credit information. Filing of the scoring model is not required, and
consent is not mandated.
Page 3
, Why Wrong:
A - Written consent is not required under New York law.
C - The scoring model does not require regulatory approval, only the use must comply
with notice requirements.
D - Credit scores cannot be the sole basis for denial or non-renewal, but this is not the
only condition; notice and dispute rights are also required.
Reference: N.Y. Ins. Law § 2604; 11 NYCRR 182
Q3. A property insurer issues a policy with a provision that excludes coverage for
losses caused by 'earth movement.' The insured experiences a mudslide that is
triggered by a fire that started on the insured's property. Under the doctrine of
efficient proximate cause, which of the following is the most likely outcome?
A. The loss is excluded because earth movement is a named peril
B. The loss is covered because the fire is the efficient proximate cause and the
mudslide is a consequence
C. The loss is excluded because the policy has a concurrent causation clause that
excludes all earth movement losses
D. The loss is covered only if the policy includes a 'landslide' endorsement
Correct Answer: B. The loss is covered because the fire is the efficient proximate
cause and the mudslide is a consequence
Rationale: Under the efficient proximate cause doctrine, if a covered peril (fire) sets off a
chain of events leading to a loss from an excluded peril (earth movement), the loss is
covered if the covered peril is the dominant cause. The mudslide is a result of the fire, so
the loss is covered. A concurrent causation clause may negate this doctrine unless it is
unambiguous, but in New York, the efficient proximate cause doctrine is applied in favor of
coverage.
Why Wrong:
A - The exclusion applies but the fire is the efficient proximate cause.
C - A concurrent causation clause may be unenforceable if it conflicts with the
efficient proximate cause doctrine.
D - An endorsement is not needed because the fire is the covered cause.
Reference: N.Y. Ins. Law § 3404; Case law on efficient proximate cause
Q4. Under New York's regulation of excess and surplus lines insurance, which of the
following statements is correct regarding the placement of a risk with an
unauthorized insurer?
A. The broker must first attempt to place the risk with three authorized insurers and
obtain declinations
B. The broker must file the policy with the Excess Line Association of New York
Page 4
