DFS sends a New York-licensed P&C broker a written interrogatory under NY Insurance Law § 308 demanding documents and answers about complaint handling. The broker ignores the request, believing only sit-down field exams under § 309 are mandatory. What is the legal consequence?

Why this is the answer

Section 308 authorizes the Superintendent to demand information from authorized insurers and licensed producers by written interrogatory. The recipient must promptly reply in writing. Failure to respond is treated as a separate violation, supporting penalties under § 109 and license suspension/revocation under § 2110(a)(4) for untrustworthiness or violation of insurance law. Section 309, in contrast, is the periodic onsite examination of domestic insurers (every five years minimum). The two tools work in tandem — § 308 for targeted inquiries, § 309 for comprehensive exams. Treating § 308 as advisory is a common — and costly — misconception.