State RegulationsNY specificDifficulty 2/5
A retired risk manager holds no license of any kind but charges New York small businesses a fee to review their policies and recommend specific coverages. Under the New York Insurance Law, he:
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
Under N.Y. Ins. Law §2107, giving advice, counsel, or opinions about insurance coverages for a fee is the business of an insurance consultant and requires a consultant license from the Superintendent of Financial Services. The trigger is paid insurance advice - not commissions, sales, or placement.
Why the other options are wrong
- B) Fee-based compensation is exactly what the consultant license regulates; the payment form does not avoid licensure.
- C) Producer licenses are personal and cannot be borrowed from an agency to cover another person's consulting practice.
- D) Business-entity producer registration under N.Y. Ins. Law §2101(p) and §2103(j)(2) covers entities transacting insurance, not an individual's fee-based advice.
Memory hook
Fee-for-advice on insurance = consultant territory; how you get paid never escapes licensure.