New York P&C Exam Flashcards

Q: What makes the New York P&C exam state-specific?

New York adds DFS licensing rules, a 90-hour pre-license requirement, Article 51 no-fault auto rules, SUM coverage, NYPIUA/FAIR Plan concepts, Regulation 64 claims handling, and strict producer conduct rules.

Q: How should I study New York no-fault auto for the P&C exam?

Focus on the mandatory auto coverage package, PIP/basic economic loss, what PIP does not cover, the serious-injury threshold for pain-and-suffering suits, SUM coverage, and no-fault claim timing.

Q: What is the New York FAIR Plan?

The New York Property Insurance Underwriting Association, commonly called the FAIR Plan, is a shared-market option for basic property insurance when an eligible risk cannot obtain coverage in the voluntary market.

Q: Which producer conduct rules are high yield?

Know the difference between rebating, twisting, churning, misrepresentation, commingling, unlicensed commission sharing, fiduciary handling of premiums, and duty to disclose material coverage limitations.

Q: Do these cards use exact New York statutory numbers?

They use exact numbers only where the licensing outline and New York insurance rules clearly support them, such as pre-license hours, CE hours, common no-fault figures, and claim timing. Where sources conflict, the cards avoid hard-coding disputed amounts.

Question 1

Primary NY insurance regulator

Accepted Answer

The New York Department of Financial Services (DFS) regulates insurers, producers, rates, forms, market conduct, and consumer complaints for property and casualty insurance in New York.

Question 2

NY P&C pre-license education

Accepted Answer

Full New York property and casualty producer candidates must complete 90 hours of approved pre-license education before sitting for the licensing exam.

Question 3

Basic NY producer eligibility

Accepted Answer

A New York P&C producer applicant generally must be at least 18, complete required education, pass the licensing exam, submit the license application, and satisfy DFS background requirements.

Question 4

NY P&C exam facts

Accepted Answer

The New York P&C exam is listed as 150 multiple-choice questions with a 70% passing score and a 2.5-hour time limit. Treat those exam facts separately from producer duties and coverage concepts.

Question 5

NY producer CE and renewal

Accepted Answer

New York P&C producer licenses renew biennially. Producers generally complete 15 CE hours per two-year period, including at least 1 hour of ethics.

Question 6

NY producer address change

Accepted Answer

A licensed New York producer must notify DFS of a business address change within 30 days. Late updates can create missed notices and disciplinary risk.

Question 7

Nonresident producer in New York

Accepted Answer

A nonresident producer generally needs a New York nonresident license and must hold an active home-state license in good standing. They must still follow New York law when transacting in the state.

Question 8

New York excess line placement

Accepted Answer

An excess line broker places coverage with eligible nonadmitted insurers only after a diligent admitted-market search. Local data supports documenting at least 3 admitted-insurer declinations.

Question 9

NY prior approval rating

Accepted Answer

New York is a prior approval state for many P&C rates and forms. Insurers file with DFS and generally need approval before using rates that affect consumers.

Question 10

Insurance business entity license

Accepted Answer

A corporation, LLC, or partnership acting as an insurance producer needs its own business entity license, and individuals who sell, solicit, or negotiate insurance need appropriate individual licenses.

Question 11

Agent vs. broker disclosure

Accepted Answer

A New York producer should make clear whether they act as an agent for the insurer, a broker for the client, or in another disclosed capacity. The relationship affects the duties owed.

Question 12

Premium funds held by a NY producer

Accepted Answer

Premiums collected from clients are fiduciary funds. They must be kept separate from personal or operating funds and remitted according to the producer's legal and contractual duties.

Question 13

Commingling

Accepted Answer

Commingling means mixing client premium funds with the producer's own money. It is a serious fiduciary violation because client or insurer funds can be misused or become untraceable.

Question 14

Rebating

Accepted Answer

Rebating is giving a policyholder something of value not specified in the policy as an inducement to buy insurance, such as cash or a gift card. New York treats it as an unfair practice.

Question 15

Twisting vs. churning

Accepted Answer

Twisting uses misrepresentation to induce replacement or cancellation. Churning replaces substantially similar coverage mainly to generate commissions, without a real client benefit.

Question 16

Sharing commissions with an unlicensed person

Accepted Answer

New York producers may not share insurance commissions with an unlicensed person for selling, soliciting, or negotiating insurance. Compensation follows licensing authority.

Question 17

Material policy exclusion disclosure

Accepted Answer

A producer who fails to disclose a significant exclusion can mislead the client about coverage. Accurate explanation of material limits is part of good-faith insurance practice.

Question 18

Suspected insurance fraud

Accepted Answer

A producer who becomes aware of suspected insurance fraud should report it through the appropriate insurer and DFS fraud channels. Ignoring or assisting fraud can threaten the license.

Question 19

Regulation 64 claim acknowledgment

Accepted Answer

New York Regulation 64 requires prompt claim handling. Local data repeatedly supports a 15-business-day acknowledgment requirement after the insurer receives a claim.

Question 20

Regulation 64 claim determination

Accepted Answer

After receiving necessary proof and information, a New York P&C insurer must promptly accept or deny the claim. If more time is needed, status communication is required rather than silence.

Question 21

Unfair claims settlement practice

Accepted Answer

Patterns of delay, misrepresentation, failure to acknowledge claims, lowball settlement tactics, or forcing litigation when liability is clear can be unfair claims practices under New York law.

Question 22

NY P/C Insurance Security Fund purpose

Accepted Answer

The Security Fund protects policyholders and claimants when an admitted property or casualty insurer becomes insolvent, paying covered claims subject to statutory limits.

Question 23

Security Fund and surplus lines

Accepted Answer

Security Fund protection applies to covered claims from admitted insurers. Nonadmitted surplus lines policies are generally outside that protection, which is one risk of surplus lines placement.

Question 24

Where NY policyholders file complaints

Accepted Answer

New York consumers with insurer or producer complaints can contact the DFS Consumer Assistance Unit. DFS can investigate complaints and use patterns of complaints for market conduct oversight.

Question 25

NYPIUA / New York FAIR Plan

Accepted Answer

NYPIUA is the shared-market FAIR Plan for eligible property owners who cannot obtain basic property insurance in the voluntary market. It is a market of last resort, not free insurance.

Question 26

What FAIR Plan coverage is not

Accepted Answer

The New York FAIR Plan provides basic property coverage, commonly fire and extended coverage perils. It is not the same as a full homeowners policy with broad liability and theft coverage.

Question 27

HO-3 coverage pattern

Accepted Answer

A standard HO-3 generally covers the dwelling on an open-perils basis and personal property on a named-perils basis. That mixed pattern is a common exam distinction.

Question 28

HO-5 vs. HO-3

Accepted Answer

HO-5 is broader because it generally provides open-perils coverage on both the dwelling and personal property. HO-3 usually limits personal property to named perils.

Question 29

HO-4 vs. HO-6

Accepted Answer

HO-4 is renters insurance for tenants. HO-6 is for condominium unit owners, covering unit-owner property, interior improvements, liability, and loss assessment exposure.

Question 30

DP-1 vs. DP-3

Accepted Answer

DP-1 is a basic named-perils dwelling form. DP-3 is the special dwelling form, generally providing open-perils coverage on the dwelling and broader protection for rental or non-owner-occupied homes.

Question 31

Landlord's residential dwelling policy

Accepted Answer

A landlord renting a residential dwelling usually looks to a dwelling property form such as DP-3, not an owner-occupied HO-3. Tenants need their own renters coverage.

Question 32

Flood and earthquake on homeowners forms

Accepted Answer

Standard homeowners forms generally exclude flood and earth movement. A New York homeowner who wants those protections needs separate coverage or an endorsement where available.

Question 33

Replacement cost vs. ACV

Accepted Answer

Replacement cost pays to repair or replace with like kind and quality without depreciation. Actual cash value subtracts depreciation, so it usually pays less on older property.

Question 34

Duty to protect property after loss

Accepted Answer

After a covered loss, the insured must take reasonable steps to prevent further damage. Failure to mitigate can reduce payment for additional damage that could have been avoided.

Question 35

Property loss appraisal clause

Accepted Answer

When insurer and insured disagree on the amount of loss, an appraisal process can resolve valuation. It decides amount, not whether the policy covers the claim.

Question 36

Commercial property coinsurance formula

Accepted Answer

The common formula is Amount Carried divided by Amount Required, multiplied by the loss. Underinsuring the property can make the insured absorb part of a covered loss.

Question 37

Business Owners Policy (BOP)

Accepted Answer

A BOP packages commercial property and commercial general liability for eligible smaller businesses. It does not replace workers compensation, professional liability, or separate flood coverage.

Question 38

Business income vs. extra expense

Accepted Answer

Business income covers lost net income and continuing expenses during a covered shutdown. Extra expense covers additional costs spent to reduce or avoid the shutdown.

Question 39

Builder's risk

Accepted Answer

Builder's risk covers buildings, materials, and fixtures during construction against covered property perils. It is property coverage, not workers compensation or CGL liability coverage.

Question 40

Inland marine insurance

Accepted Answer

Inland marine covers movable property, property in transit over land, contractors equipment, fine arts, and similar floaters. Despite the name, it is not ocean marine shipping coverage.

Question 41

Special causes of loss form

Accepted Answer

A commercial property special form is open perils: direct physical loss is covered unless excluded. Common exclusions include flood, earthquake, wear and tear, and intentional acts.

Question 42

New York auto mandatory coverage package

Accepted Answer

Local data supports New York minimum auto liability of 25/50/10, plus mandatory PIP/no-fault benefits and uninsured or supplementary uninsured motorist protection.

Question 43

NY PIP / basic economic loss

Accepted Answer

New York PIP pays first-party economic benefits such as medical expenses, lost wages within statutory limits, and other reasonable expenses, regardless of who caused the accident.

Question 44

Pain and suffering under no-fault

Accepted Answer

PIP does not pay pain and suffering. To sue for non-economic damages after an auto accident, the injured person generally must meet New York's serious-injury threshold.

Question 45

SUM coverage

Accepted Answer

Supplementary Uninsured/Underinsured Motorist coverage protects the insured for bodily injury caused by a driver with no insurance or insufficient liability limits.

Question 46

NY no-fault application deadline

Accepted Answer

Local data supports a 30-day deadline for an injured person to submit the written no-fault application after an auto accident, unless a reasonable justification for delay applies.

Question 47

New York Automobile Insurance Plan

Accepted Answer

The NYAIP is an assigned-risk market for drivers who cannot obtain auto insurance voluntarily. Participating insurers share the burden of writing these higher-risk applicants.

Question 48

NY workers compensation requirement

Accepted Answer

New York requires workers compensation coverage for nearly all employers, even many with only one employee. Coverage can be obtained through private carriers, NYSIF, or approved self-insurance.

Question 49

Workers comp exclusive remedy

Accepted Answer

For a covered job injury, workers compensation is generally the employee's remedy instead of suing the employer in tort. Exceptions can apply for intentional or special circumstances.

Question 50

CGL Coverage A, B, and C

Accepted Answer

Coverage A handles bodily injury and property damage liability. Coverage B handles personal and advertising injury. Coverage C pays limited medical payments regardless of legal fault.

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