New York Unfair Trade Practices & Consumer Protection — New York Insurance Law — Life & Health Practice Test

This New York Insurance Law — Life & Health New York Unfair Trade Practices & Consumer Protection practice set has 24 practice questions based on the official exam materials, each with an instant explanation.

Sample questions

Three questions from the New York Unfair Trade Practices & Consumer Protection bank with the correct answer and an explanation. The practice quiz above draws 24 questions at random from the same bank.

1. Which N.Y. Insurance Law article prohibits unfair methods of competition and unfair or deceptive acts or practices in the business of insurance?

   • Article 24 — Correct answer
   • Article 21
   • Article 26
   • Article 32

   Explanation: N.Y. Ins. Law Article 24 (§2401 et seq.), captioned "Unfair Methods of Competition and Unfair and Deceptive Acts and Practices," and specifically §2403, prohibits any person engaged in the business of insurance in New York from engaging in unfair methods of competition or unfair or deceptive acts or practices.

   Handbook: NY Unfair Trade Practices — Article 24 Purpose and Scope

2. Under N.Y. Insurance Law §2402, the prohibitions of Article 24 (Unfair Trade Practices) apply to which of the following?

   • Any "person" — meaning any individual or legal entity engaged in the business of insurance in New York — Correct answer
   • Only domestic New York insurers
   • Only licensed insurance producers
   • Only the Superintendent of Financial Services

   Explanation: §2402(a) defines "person" broadly as any individual and any legal entity subject to the Insurance Law that is engaged in the business of insurance in New York — so Article 24 reaches insurers, producers, and other regulated persons alike, not just one category.

   Handbook: NY Unfair Trade Practices — Who Article 24 Covers

3. Under N.Y. Insurance Law §2123, an insurer, agent, broker, or navigator who issues or circulates material that misrepresents the terms, benefits, or advantages of an insurance policy has committed:

   • A prohibited misrepresentation — Correct answer
   • A permissible sales technique as long as the customer signs a disclosure
   • A violation only if the insured is a senior citizen
   • No violation unless done in writing

   Explanation: §2123(a)(1) prohibits issuing, circulating, or causing to be issued or circulated any estimate, illustration, circular, statement, or comparison that misrepresents the terms, benefits, or advantages of any insurance policy.

   Handbook: NY Unfair Trade Practices — Misrepresentation of Policy Terms