A homeowners insurer sells personal-auto coverage in New York entirely through a direct-mail and online platform without using local face-to-face producers. Which of the following is TRUE under New York's direct-response licensing rules?

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EstatePass Inc. · Accepted Answer

The insurer must still designate licensed agents (typically employee-producers operating from a licensed business entity) who are properly appointed and who comply with NY producer regulations and Reg 194 disclosure — New York does not exempt direct-response (mail or internet) insurance sales from producer licensing. The insurer must use a licensed business-entity producer (often a wholly owned affiliated agency) with at least one individually licensed natural person designated as 'designated licensed producer' (DLP) responsible for compliance. Online applications that the customer signs are still considered insurance solicitation under § 2101(a), and the entity collecting the application must hold a NY producer license. Reg 194 disclosure applies, generally by including the role-and-compensation statement on the website or in the application packet.

A homeowners insurer sells personal-auto coverage in New York entirely through a direct-mail and online platform without using local face-to-face producers. Which of the following is TRUE under New York's direct-response licensing rules?

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