State RegulationsNY specificDifficulty 1/5
Under N.Y. Ins. Law §§2101(c) and 2104, an insurance 'broker' is:
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Answer & full 3-part explanation (select an option above, or peek)
Why D is correct
Under N.Y. Ins. Law §2101(c), an insurance broker acts, for money, commission, or other thing of value, on behalf of an insured in soliciting, negotiating, or placing insurance, and broker conduct is regulated under §2104. The broker's principal is the customer, not the insurer.
Why the other options are wrong
- A) Acting for a specific insurer as its authorized representative defines an agent under N.Y. Ins. Law §2101(a).
- B) Investigating and adjusting losses describes an adjuster under N.Y. Ins. Law §2101(g) and §2108.
- C) Fee-only coverage advice describes an insurance consultant under N.Y. Ins. Law §2107.
Memory hook
Broker = 'for the insured, for compensation' - the mirror image of the agent.