State RegulationsNY specificDifficulty 1/5
Under N.Y. Ins. Law §2107, an insurance 'consultant' is one who:
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Answer & full 3-part explanation (select an option above, or peek)
Why B is correct
Under N.Y. Ins. Law §2107, a person may not act as an insurance consultant - holding oneself out as giving advice, counsel, or opinions on insurance matters to clients for a fee - without a consultant license from the Superintendent of Financial Services. Paid advice, not sale or placement, is the hallmark of consulting.
Why the other options are wrong
- A) Commission-based placement on the insured's behalf is broker activity under N.Y. Ins. Law §2101(c), not consulting.
- C) Selling as the insurer's authorized representative is agent activity under N.Y. Ins. Law §2101(a).
- D) Investigating and settling claims is adjusting under N.Y. Ins. Law §2101(g) and §2108.
Memory hook
Consultant = paid advice, no sale - and §2107 requires the specialist license.