State RegulationsNY specificDifficulty 3/5
An insurer terminates a New York agent for cause after discovering misappropriated premiums. Under N.Y. Ins. Law §2112(d), what must the insurer do?
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Answer & full 3-part explanation (select an option above, or peek)
Why D is correct
Under N.Y. Ins. Law §2112(d), an insurer that terminates a producer for cause must report the facts to the Superintendent of Financial Services within 30 days and must also send the terminated agent a copy of the report within 15 days. The dual-notice design lets DFS track problem producers quickly while preserving the agent's record of exactly what was reported.
Why the other options are wrong
- A) The report to the Superintendent is due within 30 days, and the agent must receive a copy within 15 days — this option shortens one deadline and deletes the other duty.
- B) The 60-day and 45-day figures belong to other New York timing rules, such as replacement rescission and group-conversion extensions, not to the §2112(d) termination report.
- C) The Superintendent must be informed within 30 days regardless of whether the agent appeals; notifying the agent alone does not satisfy the statute.
Memory hook
For-cause firing: 30 days to tell the state, 15 days to copy the agent.