NY License Exam - New York General Insurance Laws Questions and Answers Rated A

NY License Exam - New York General Insurance Laws Questions and Answers Rated A The Superintendent is the head of the Department of Insurance in New York. The _______ appoints the Superintendent to a four-year term. - Answer ️️ -governor If the Superintendent requests information during an examination or investigation and a person does not respond within ____ days, he or she may impose a penalty of up to $500 per day (not more than $10,000 total) for each day the person fails to respond. - Answer ️️ -15 If the Superintendent imposes five separate penalties against a person within five years for failing to respond to his or her inquiries, the Superintendent may levy an additional penalty of up to _________. - Answer ️️ -$50,000 To qualify for a certificate of authority, a mutual insurer must show that it: - Answer ️️ -(1) maintains the required surplus to fulfill its obligations to policyholders; (2) has the required number of applications for insurance; (3) has a genuine membership list; and (4) has received premiums from members and will issue policies within 60 days after receiving a certificate of authority. A producer's appointment of an agent remains in effect until - Answer ️️ -(1) terminated by the insurer; (2) the producer's license is suspended or revoked; or (3) the producer's license expires and is not renewed. Controlled business - Answer ️️ -insurance that is written primarily on the lives, property, or risks of the licensee or of the licensee's family members, employer, or business associates. Agents and brokers must maintain records showing receipts and disbursements for each premium account. These records must identify: - Answer ️️ -(1) the date and amount of each transaction (2) the name of the insured and insurer (3) the policy binder number (4) the type of risk involved Insurers must keep records of: - Answer ️️ -(1) insurance policies, for six years after the date a policy is no longer is in force or until the next examination report, whichever period is longer (2) applications when a policy is not issued, for six years or until the next examination report, whichever period is longer (3) claim files, for six years after a claim is resolved or until the next examination report, whichever period is longer An insurer's records retention plan must describe: - Answer ️️ -(1) the types of records retained (2) the retention method used (3) the safeguards established to prevent the alteration of records New York has enacted the Insurance Frauds Prevention Act to address the problem of insurance fraud in the state. The act does so by - Answer ️️ -(1) giving the Superintendent broad authority to investigate insurance fraud; (2) encouraging reports of suspected insurance fraud; (3) granting immunity for persons who report suspected insurance fraud; and (4) setting penalties for insurance fraud. The Consumer Information Privacy Regulation - Answer ️️ -governs how insurers and their producers treat personal health information and personal financial information from individuals. When collecting or using nonpublic personal financial or health information, an insurer or producer is required to - Answer ️️ -(1) notify individuals about the insurer's or producer's privacy policies and practices; (2) describe conditions under which an insurer or producer may disclose this information to affiliated companies and nonaffiliated third parties; (3) provide methods for individuals to prevent an insurer or producer from disclosing this information; and (4) provide methods for individuals to prevent an insurer or producer from disclosing this information by not affirmatively consenting to such disclosure. An insurer or producer must notify its current customers of its privacy policies or practices at least - Answer ️️ -once every year. A producer must disclose the following information to purchasers at the time of application: - Answer ️️ -(1) a description of the role the producer plays in the sale of insurance; (2) whether the producer will be compensated by the insurer or another third party for selling insurance; (3) that the producer's compensation may vary depending on the contract and insurer the purchaser selects, the volume of business, and the profitability of the contracts the producer sells; and (4) that the purchaser may ask the producer to provide information about the compensation the producer will receive from the sale as well as the compensation the producer would have received based on alternative quotes presented. If the purchaser requests additional information about the producer's compensation, the producer must disclose the following information at or before policy issuance (or within five days if time is of the essence): - Answer ️️ -(1) a description of the nature, amount, and source of any compensation the producer will receive from th