Unfair Methods of Competition and Unfair and Deceptive Acts and Practices

What this document is

New York Insurance Law Article 24 - Unfair Methods of Competition and Unfair and Deceptive Acts and Practices (Secs. 2401-2409) is a state statute published by New York State Senate, NYS Open Legislation (nysenate.gov). It is one of the New York documents that insurance license exam questions are written from, including new york life & health, new york property & casualty, new york personal lines practice questions. This page summarizes it and points to the official version, which is the text to rely on.

Sections cited in practice questions

Each practice answer shows the exact passage it comes from. These are sections of this document that questions cite, with a short excerpt from the source text.

• N.Y. Ins. Law Article 24 § 2401 (Purpose)

  “The purpose of this article is to regulate trade practices in the business of insurance, including the business of life settlements, in accordance with the intent of congress as expressed in Public Law 15, 79th Congress, by defining, or providing for the determination of, all such practices in this...”

• N.Y. Ins. Law Article 24 § 2406(a) (Procedure After Report; Defined Violation)

  “If the hearing was on a charge of a defined violation the superintendent shall make an order on his report and serve a copy of the findings and order upon the person charged with the violation and any intervenor. If the superintendent finds that the person complained of has engaged in a defined...”

• N.Y. Ins. Law Article 24 § 2402(c) (Definition of Determined Violation)

  “"Determined violation" means any unfair method of competition or any unfair or deceptive act or practice, which is not a defined violation but is determined by the superintendent pursuant to section two thousand four hundred five of this article to be such method, act or practice.”

• N.Y. Ins. Law Article 24 § 2407(a) (Procedure After Report; Determined Violation)

  “If the report charges a determined violation and if the method of competition, act or practice constituting such determined violation has not been discontinued, the superintendent may, through the attorney general, at any time after the service of the report cause an action to be instituted to...”

• N.Y. Ins. Law Article 24 § 2403 (Unfair Methods of Competition or Unfair and Deceptive Acts or Practices Prohibited)

  “No person shall engage in this state in any trade practice constituting a defined violation or a determined violation as defined herein.”

• N.Y. Ins. Law Sec. 2405(a) (Hearings and reports on defined violations and determined violations; notice of hearing)

  “(a) Whenever the superintendent has reason to believe that a person has committed or is committing a defined violation or has been engaged in or is engaging in any method of competition, or any act or practice, could become a determined violation and that a proceeding thereon would be in the...”

• N.Y. Ins. Law Sec. 2405(b) (Hearings and reports on defined violations and determined violations; intervention on good cause)

  “Upon good cause shown, the superintendent shall permit anyone to intervene, appear and be heard at the hearing personally or by counsel.”

Practice this material

Questions about this source

More New York sources

• 11 NYCRR Chapter IX (Unfair Trade Practices), Parts 216 and 218 - New York unfair claims settlement practices and claim cost control measures, and the prohibition against geographical redlining (Part 216 = Regulation 64; Part 218 = Regulation 90)Regulation
• 11 NYCRR Parts 27 and 30 - New York excess line placements governing standards and producer compensation transparency (Part 27 = Regulation 41; Part 30 = Regulation 194)Regulation
• 11 NYCRR Chapter III Subchapter B (Property and Casualty Insurance), Subpart 60-2 and Parts 67 and 73 - New York supplementary uninsured/underinsured motorists insurance, mandatory underwriting inspection of private passenger automobiles, and claims-made policy standards (Subpart 60-2 = Regulation 35-A; Part 67 = Regulation 79; Part 73 = Regulation 121)Regulation
• 11 NYCRR Chapter II (Agents, Brokers and Adjusters), Parts 20, 21, 22, 23 and 34 - New York producer licensing, examination, fiduciary, recordkeeping and place-of-business rules (Part 20 = Regulations 9, 18 and 29; Part 21 = Regulation 5; Part 22 = Regulation 6; Part 23 = Regulation 7; Part 34 = Regulation 125)Regulation
• 11 NYCRR Part 243 (Chapter X, Records) and Part 420 (Chapter XIX) - New York standards of records retention by insurance companies, and privacy of consumer financial and health information (Part 243 = Regulation 152; Part 420 = Regulation 169)Regulation
• 23 NYCRR Part 500 - Cybersecurity Requirements for Financial Services Companies (New York Department of Financial Services; the Part the New York P&C exam outline cites as "Reg 23")Regulation
• Seventh Amendment to 11 NYCRR Part 67 (Insurance Regulation 79) -- Mandatory Underwriting Inspection Requirement for Private Passenger Automobiles, sections 67.2 and 67.3 as adoptedRegulation
• N.Y. Ins. Law s. 3203: Individual life insurance policies; standard provisionsState statute