State RegulationsNY specificDifficulty 2/5
Which statement about staffing at a licensed New York business-entity producer is correct?
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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(k)(1) and 2103(j)(2), licensure attaches to transacting insurance - selling, soliciting, or negotiating. Clerical and administrative employees who never perform those acts need no license, but everyone who does, however paid, must hold an individual producer license.
Why the other options are wrong
- A) Licensure is activity-based, not payroll-based; clerical employees who never transact insurance need no license.
- B) The entity license registers the firm; it does not substitute for the individual licenses of persons who transact insurance.
- C) Later review by a licensed producer does not retroactively cure unlicensed negotiation.
Memory hook
License follows the act: transact = licensed; purely clerical = no license needed.