State RegulationsNY specificDifficulty 2/5
A New York producer is asked to run an advertisement that calls attention to an insurer not authorized to transact business in New York. Under N.Y. Ins. Law §2122, publishing such an advertisement is...
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Answer & full 3-part explanation (select an option above, or peek)
Why B is correct
Under N.Y. Ins. Law §2122, no insurance producer may, by any advertisement or public announcement in this state, call attention to any unauthorized insurer or insurers. The same section also bars producers from issuing advertisements purporting to make known an insurer's financial condition unless they conform to statutory requirements, and the Department of Financial Services may discipline violators. Advertising an unauthorized insurer is flatly forbidden — a disclaimer does not cure it.
Why the other options are wrong
- A) A disclosure about claims coverage cannot legalize what §2122 prohibits outright.
- C) Section 2122 contains no approval mechanism that would permit advertising an unauthorized insurer.
- D) Authorization in another state is irrelevant; the prohibition turns on the lack of authorization in New York.
Memory hook
No ads for unauthorized insurers — not with disclaimers, not with approvals, not ever.