State RegulationsNY specificDifficulty 1/5
What gives a licensed New York agent the legal authority to transact insurance business for a particular insurer?
Select an option to reveal the answer and the full 3-part explanation — free, no signup.
Answer & full 3-part explanation (select an option above, or peek)
Why D is correct
Under N.Y. Ins. Law §2112(a) through (c), an agent transacts insurance for an insurer only when the insurer appoints the agent by filing a notice of appointment with the Superintendent of Financial Services. The license qualifies the person to hold appointments, but it is the appointment — not the license itself — that binds the agent to a specific insurer.
Why the other options are wrong
- A) A license alone does not attach the agent to any insurer; each company must separately appoint the licensee before the agent may act for it.
- B) Professional associations confer no legal authority to transact insurance on behalf of an insurer.
- C) The Superintendent is the regulator, not a contracting party; the agency relationship runs between the insurer and the agent.
Memory hook
License = who may sell; appointment = for whom.