Free New York Property & Casualty practice questions

Answer: B. Within 120 days after the date of the loss

For a loss that is not paid periodically on a continuing basis, the required Proofs of Loss provision gives the claimant 120 days after the date of the loss to furnish written proof. The clock starts at the loss, not at the insurer's receipt of notice. Ninety days is the deadline the same provision sets for claims paid periodically for continuing loss, measured from the end of the insurer's period of liability. One year is the outer limit for proof that could not reasonably be furnished on time, not the standard deadline.

Answer: A. Dana at least 40 hours, and Eli at least 90 hours of coursework

Section 2103(f)(2)(B) requires an applicant for a subsection (b) license to complete an approved course of at least ninety hours before being qualified for the examination, but sets a lower minimum of forty hours where the license is for a personal line of authority. Eli's property and casualty authority carries the ninety-hour minimum and Dana's personal lines authority carries forty. Treating the two licenses alike ignores the personal lines proviso, and twenty hours is not a figure the provision uses.

Answer: C. 90 days

New York's required Proofs of Loss provision sets a separate deadline for a claim paid periodically while a loss continues: written proof is due within 90 days after the end of the period for which the insurer is liable. Thirty days and 60 days are shorter than the period the provision states. The 120-day period in the same provision applies to any other kind of loss, not to a periodic-payment claim.

Answer: C. Once 60 days have passed since written proof was furnished

The required Legal Actions provision bars any action at law or in equity on the policy until 60 days have expired after written proof of loss has been furnished. Suing as soon as proof is furnished, or after only 30 days, comes before that waiting period ends. The 60 days run from the furnishing of proof of loss, not from the date of the loss.

Answer: B. Two years from the policy's date of issue

The required Time Limit on Certain Defenses provision says that once two years have passed from the date of issue, a misstatement in the application that is not fraudulent cannot be raised to void the policy or refuse a claim for a loss or disability that begins after that two-year period. Fraudulent misstatements are carved out of this protection. The period is measured from the date of issue, not from delivery or from a first claim payment, and it is two years rather than one or three.

Answer: A. 7 days for weekly premiums and 10 days for monthly premiums

The required Grace Period provision tells the insurer to insert a number of days not less than 7 for a weekly premium policy and not less than 10 for a monthly premium policy. The 31-day floor in the same provision applies to policies on any other premium mode, so pairing 31 days with monthly premiums misreads it. No 30-day floor appears in the provision, and 10 days is the monthly minimum rather than the weekly one.

Answer: D. Variable life insurance policies

Under N.Y. Ins. Law Sec. 2104(b)(1)(B), the second grouping reaches every line of authority other than life insurance and variable life and variable annuity products. A variable life policy falls inside that exception, so a broker holding only this grouping cannot act on it. Accident and health insurance appears in the first grouping, but it is not one of the exceptions to the second, so it is within this broker's authority as well. Commercial liability and homeowners coverage are not among the exceptions either.

Answer: A. Five hundred dollars per transaction

Section 2102(g) subjects anyone who violates the section to a penalty of up to five hundred dollars for each transaction. The five thousand dollar figure is the separate per-transaction penalty in section 2102(a)(2) for acting as a reinsurance intermediary without the required license, and the stem rules that case out. Neither one hundred nor one thousand dollars is a figure the section sets.

Answer: A. 90 days from the date of the broker's death

N.Y. Ins. Law Sec. 2109(e)(1) provides that a temporary license issued after a licensee's death may run for no more than 90 days from the death. The superintendent may renew it for further 90-day terms up to a 15-month aggregate, so 15 months is a ceiling on the renewed license and not the initial term. A six-month term belongs to temporary licenses issued for a licensee absent on military service under Sec. 2109(f)(1), not to one issued on a death. No one-year term appears in the statute.

Answer: D. The insurer files a notice of appointment within 15 days after the contract is executed

N.Y. Ins. Law Sec. 2112(b) places the duty on the appointing insurer: it must file a notice of appointment, in a format the superintendent approves, within fifteen days after it executes the agency contract or after the first insurance application is submitted. The statute assigns this filing to the insurer, not to the producer. Thirty days is the period Sec. 2112(d) sets for a different filing, the statement of facts after a termination for cause. A filing is required in any event, since Sec. 2112(a) has insurers doing business in New York file a certificate of appointment to appoint their agents.