State RegulationsNY specificDifficulty 2/5
A New York licensee willfully submits a document containing a material false statement to an insurer in connection with an application. Under the penalty provisions of the New York Insurance Law (§2127), which result may follow?
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Answer & full 3-part explanation (select an option above, or peek)
Why D is correct
Under N.Y. Ins. Law §2127, willful false statements and similar violations in connection with insurance applications carry penalties under the Insurance Law - monetary penalties enforceable through the Superintendent - and license discipline under §2110 is available on top. The exposure is personal to the licensee, not merely a private matter between the parties.
Why the other options are wrong
- A) DFS has a central enforcement role; penalties for insurance-law violations are not left to insurers' private fines.
- B) Willful material false statements are not reduced to a mere contract issue; they trigger statutory penalties.
- C) Timing of discovery does not erase the violation; penalties are available even when no claim has yet arisen.
Memory hook
Willful lies on applications cost money - and the license.