New York State Exam New York State Insurance License Exam 1

Question 1

Which New York state agency is responsible for regulating insurance companies, agents, and brokers operating in the state?

Accepted Answer

New York Department of Financial Services (DFS)

Answer

The New York Department of Financial Services (DFS) is the state agency that regulates all insurance companies, agents, and brokers in New York.

Question 2

What is the minimum free-look period required for life insurance policies sold in New York?

Accepted Answer

10 days

Answer

New York law mandates a minimum 10-day free-look period for life insurance policies, during which the policyholder may return the policy for a full premium refund.

Question 3

Which of the following best defines 'insurable interest' in insurance law?

Accepted Answer

A financial stake in the insured subject such that a loss would cause financial harm

Answer

Insurable interest means the policyholder must have a financial relationship to the insured subject, so that a loss would cause them actual financial harm.

Question 4

Under New York law, which of the following activities requires a valid insurance license?

Accepted Answer

Soliciting or negotiating insurance contracts for compensation

Answer

New York law requires a license for any person who solicits, negotiates, or sells insurance in exchange for compensation.

Question 5

Which legal principle ensures that insurance restores the insured to the same financial position before a loss, but does not allow the insured to profit?

Accepted Answer

Indemnity

Answer

The principle of indemnity ensures insurance compensates the insured only for actual financial loss, preventing any profit from an insurance claim.

New York State Exam Practice Test

New York State Exam Practice Test

New York State Exam New York State Insurance License Exam 1