An employee signs a consent allowing her employer to buy a life insurance policy on her life. Under the Article 78 definitions, is the employee's consent a life settlement contract?

No, because an employee's consent tied to the employer's purchase of coverage is excluded

A licensed life settlement broker plans a television and internet campaign aimed at New York policyowners who might want to sell their policies. Under the advertising section of New York's life settlement article, which statement is correct?

The broker may advertise, and the ads must follow the advertising and marketing laws and the superintendent's rules.

When her license term ends, a New York life agent who is subject to the continuing education section has completed fewer credit hours than it requires for that period. What does the section provide?

She is not eligible to renew the license for the next term

Which of the following activities meets New York Insurance Law's definition of "negotiate" for purposes of producer licensing?

An agent advising a prospect directly on the terms of a specific policy she sells

A first-time applicant for a New York life insurance agent license has been awarded the Chartered Life Underwriter (C.L.U.) designation by The American College. Under Sec. 2103(g)(9), how does the designation affect the examination and the 40-hour prelicensing course?

The superintendent may, at discretion, waive all or part of the exam or the course

An analyst at a rating agency learns, through work on a portfolio of settled policies, the name of an insured and details of the insured's medical history. Under New York's life settlement privacy section, which statement is correct?

The analyst may disclose neither unless a listed exception or some other law permits the disclosure.

Before a policy is issued, an investor arranges and funds a life insurance policy on an elderly stranger's life, intending that the investor will collect the benefits. The investor has no insurable interest when the policy originates, but later becomes the insured's business partner. Under New York Insurance Law, how is the arrangement classified?

It is stranger-originated life insurance, judged by interest at policy origination.

Under New York Insurance Law, which of the following describes who may receive a life settlement broker license from the superintendent?

An individual, firm, association or corporation that has met the chapter's requirements

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1.An employee signs a consent allowing her employer to buy a life insurance policy on her life. Under the Article 78 definitions, is the employee's consent a life settlement contract?
Answer: D. No, because an employee's consent tied to the employer's purchase of coverage is excluded
The definition of a life settlement contract lists arrangements that are not life settlement contracts. One is any designation, consent or agreement by an employee in connection with the employer's purchase, or a purchase by a trust the employer established, of life insurance on the employee's life. The consent is therefore outside the definition whatever interest the employer gains. The exclusion covers both a direct employer purchase and a purchase through an employer trust, so it is not limited to trusts. It carries no condition about the employer being an insured depository institution.
Source
N.Y. Ins. Law Sec. 7802(k)(3)(I) (Definitions)
Choose an answer to see the explanation.
2.A licensed life settlement broker plans a television and internet campaign aimed at New York policyowners who might want to sell their policies. Under the advertising section of New York's life settlement article, which statement is correct?
Answer: A. The broker may advertise, and the ads must follow the advertising and marketing laws and the superintendent's rules.
N.Y. Ins. Law Sec. 7809(a) permits a licensed life settlement provider, intermediary or broker to conduct or take part in advertisements in New York, and requires those advertisements to comply with all advertising and marketing laws and any rules the superintendent issues. Because brokers are named alongside providers and intermediaries, the claim that only providers may advertise is wrong. The section conditions advertising on compliance with those laws and rules, not on approval from the issuing insurer, and it subjects licensees to those requirements rather than leaving them unrestricted.
Source
N.Y. Ins. Law Sec. 7809(a) (Advertising)
Choose an answer to see the explanation.
3.When her license term ends, a New York life agent who is subject to the continuing education section has completed fewer credit hours than it requires for that period. What does the section provide?
Answer: A. She is not eligible to renew the license for the next term
Sec. 2132(h)(1) states that a person who fails to meet the section's requirements is not eligible to renew the license. The section makes no provision for renewing into an inactive status, for completing the missing hours after renewal, or for curing the shortfall through the timing of the renewal application.
Source
N.Y. Ins. Law Sec. 2132(h)(1) (Continuing education)
Choose an answer to see the explanation.
4.Which of the following activities meets New York Insurance Law's definition of "negotiate" for purposes of producer licensing?
Answer: A. An agent advising a prospect directly on the terms of a specific policy she sells
Under Sec. 2101(m), negotiating means conferring with, or giving advice directly to, a purchaser or prospective purchaser about the substantive benefits, terms or conditions of a particular contract, where the person either sells insurance or obtains it from licensed insurers for purchasers. The agent advising a prospect on a specific policy she sells meets each element. Exchanging a contract for money on behalf of an insurer is what the same section defines as a sale, not negotiation. Rating and classifying risks involves no conferring with a purchaser, and administering a benefit plan is not advising a purchaser about the terms of a particular contract.
Source
N.Y. Ins. Law Sec. 2101(m) (Definitions, negotiate)
Choose an answer to see the explanation.
5.An individual held a broker license for the same lines of authority in another state, and that license was canceled. She now applies for a New York insurance broker license. Assuming the other conditions of the reciprocal exemption are met, the exemption from the New York examination and prelicensing education is available only if New York receives her application within how many days of the cancellation?
Answer: C. 90 days
Under Sec. 2104(e)(3)(G), an applicant previously licensed for the same lines of authority in another state may be licensed as a New York broker without the New York examination, and need not complete prelicensing education, when the home state treats New York residents the same way. Where the prior license is no longer current, the exemption depends on New York receiving the application within ninety days of the cancellation, along with a certification or NAIC database record showing good standing. Thirty, sixty and 120 days are not the window this provision sets for an application that follows cancellation of the prior license.
Source
N.Y. Ins. Law Sec. 2104(e)(3)(G) (Insurance brokers; licensing)
Choose an answer to see the explanation.
6.A licensee under Article 21 moves to a new address. Under the change-of-address section, within how many days of the move must the licensee inform the superintendent?
Answer: D. 30 days
Sec. 2134(a) requires an Article 21 licensee to notify the superintendent of a change of address, by a means the superintendent accepts, within thirty days of the change. Ten, sixty and ninety days are not the period this section sets for reporting an address change.
Source
N.Y. Ins. Law Sec. 2134(a) (Change of address)
Choose an answer to see the explanation.
7.A first-time applicant for a New York life insurance agent license has been awarded the Chartered Life Underwriter (C.L.U.) designation by The American College. Under Sec. 2103(g)(9), how does the designation affect the examination and the 40-hour prelicensing course?
Answer: D. The superintendent may, at discretion, waive all or part of the exam or the course
Section 2103(g)(9) lets the superintendent, in the superintendent's discretion, dispense with all or any part of the written examination or the minimum forty-hour course for an individual holding the C.L.U. or Chartered Life Underwriter Associate designation from The American College. The relief is discretionary, so it is not automatic, and it can reach the examination as well as the course. The C.P.C.U. designation appears in the following paragraph and relates to the ninety-hour course for subsection (b) licenses; it does not replace the C.L.U. route.
Source
N.Y. Ins. Law Sec. 2103(g)(9) (Insurance agents; licensing)
Choose an answer to see the explanation.
8.An analyst at a rating agency learns, through work on a portfolio of settled policies, the name of an insured and details of the insured's medical history. Under New York's life settlement privacy section, which statement is correct?
Answer: D. The analyst may disclose neither unless a listed exception or some other law permits the disclosure.
N.Y. Ins. Law Sec. 7810(a) reaches licensees and their authorized representatives, insurers, information bureaus, rating agencies and any other person with actual knowledge of an insured's or owner's identity. Such a person may not disclose the identity, any detail from which the insured or owner could reasonably be identified, or the insured's financial or medical information, except where the section's listed exceptions apply or other law permits or requires it. A rating agency is named expressly, so the duty is not confined to licensees. Identity is protected along with medical information, so sharing the name is barred too. The closing of a contract is not one of the listed exceptions.
Source
N.Y. Ins. Law Sec. 7810(a) (Privacy)
Choose an answer to see the explanation.
9.Before a policy is issued, an investor arranges and funds a life insurance policy on an elderly stranger's life, intending that the investor will collect the benefits. The investor has no insurable interest when the policy originates, but later becomes the insured's business partner. Under New York Insurance Law, how is the arrangement classified?
Answer: C. It is stranger-originated life insurance, judged by interest at policy origination.
N.Y. Ins. Law Sec. 7815(a) defines stranger-originated life insurance as an act, practice or arrangement, at or before issuance, to initiate or facilitate a policy for the intended benefit of a person who has no insurable interest in the insured's life at the time the policy originates. The test is fixed at origination, so an interest the investor acquires later does not change the classification, and nothing in the definition looks to the date of death. The definition also does not depend on a later sale of the policy to a provider.
Source
N.Y. Ins. Law Sec. 7815(a) (Stranger-originated life insurance)
Choose an answer to see the explanation.
10.Under New York Insurance Law, which of the following describes who may receive a life settlement broker license from the superintendent?
Answer: B. An individual, firm, association or corporation that has met the chapter's requirements
The broker licensing section lets the superintendent license any individual, firm, association or corporation that has complied with the chapter's requirements, and the license authorizes the holder to act as a life settlement broker. Business entities are therefore eligible, so the natural-person-only choice is wrong. The statute names corporations alongside firms and associations, so a corporation is not pushed into provider licensing. Nothing in the authorizing provision limits the license to existing life producers; holding a life line of authority is not a condition of eligibility.
Source
N.Y. Ins. Law Sec. 2137(a) (Life settlement brokers; licensing)
Choose an answer to see the explanation.

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1.An employee signs a consent allowing her employer to buy a life insurance policy on her life. Under the Article 78 definitions, is the employee's consent a life settlement contract?

2.A licensed life settlement broker plans a television and internet campaign aimed at New York policyowners who might want to sell their policies. Under the advertising section of New York's life settlement article, which statement is correct?

3.When her license term ends, a New York life agent who is subject to the continuing education section has completed fewer credit hours than it requires for that period. What does the section provide?

4.Which of the following activities meets New York Insurance Law's definition of "negotiate" for purposes of producer licensing?

6.A licensee under Article 21 moves to a new address. Under the change-of-address section, within how many days of the move must the licensee inform the superintendent?

7.A first-time applicant for a New York life insurance agent license has been awarded the Chartered Life Underwriter (C.L.U.) designation by The American College. Under Sec. 2103(g)(9), how does the designation affect the examination and the 40-hour prelicensing course?

8.An analyst at a rating agency learns, through work on a portfolio of settled policies, the name of an insured and details of the insured's medical history. Under New York's life settlement privacy section, which statement is correct?

10.Under New York Insurance Law, which of the following describes who may receive a life settlement broker license from the superintendent?

The other 238 questions are $29.