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Property and Casualty Insurance Producer Exam

Unfair practices (NY): practice questions

Our Property & Casualty Insurance bank has 7 questions on this topic. Here are 3 of them with answers; the full mock exam draws from every topic, like the real one.

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Question 1 · New York

Under NY Ins. Law 2117, acting in New York as an agent for an insurer that is not licensed there is:

  1. Allowed for one policy a year
  2. Prohibited
  3. Allowed with the insured's consent
  4. Allowed for commercial risks only
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B. Prohibited — NY Ins. Law 2117(a): no person shall in this state act as agent of any insurer not licensed or authorized to do an insurance business in this state.

Question 2 · New York

Under NY Ins. Law 2601, knowingly misrepresenting pertinent facts or policy provisions to claimants, as a general business practice, is:

  1. An unfair claim settlement practice
  2. Allowed if later corrected
  3. A matter only for the courts
  4. Allowed in auto claims
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A. An unfair claim settlement practice — NY Ins. Law 2601(a)(1): knowingly misrepresenting to claimants pertinent facts or policy provisions relating to coverages at issue.

Question 3 · New York

Under NY Ins. Law 2601, failing to adopt reasonable standards for prompt investigation of claims is:

  1. Required only for life insurers and not for P&C insurers
  2. An unfair claim settlement practice if done as a general business practice
  3. Allowed for small insurers
  4. A licensing matter for agents only
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B. An unfair claim settlement practice if done as a general business practice — NY Ins. Law 2601(a)(3): failing to adopt and implement reasonable standards for the prompt investigation of claims.

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