Key Takeaways
- The New York Department of Financial Services (DFS) regulates all insurance activities in New York under NY Insurance Law
- The Superintendent of Financial Services is appointed by the Governor and oversees banking, insurance, and financial services
- DFS was created in 2011 by merging the Banking Department and Insurance Department
- New York has some of the most comprehensive consumer protection laws in the nation
- NY Insurance Law and Regulations (Title 11 NYCRR) govern insurance activities in the state
New York Department of Financial Services (DFS)
Important: This study guide covers New York state-specific Life & Health insurance content only. You should complete the national Life & Health exam preparation first, as it covers the foundational insurance concepts tested on your exam.
The New York Department of Financial Services (DFS) is the state agency responsible for regulating the insurance, banking, and financial services industries in New York. DFS was created in 2011 through a merger of the former Banking Department and Insurance Department.
The Superintendent of Financial Services
The Superintendent of Financial Services is:
- Appointed by the Governor with Senate confirmation
- Serves at the pleasure of the Governor
- Responsible for enforcing NY Insurance Law and Banking Law
- Authorized to adopt regulations, investigate violations, and discipline licensees
Superintendent Powers and Duties
| Power | Description |
|---|---|
| Licensing | Issue, suspend, and revoke producer licenses |
| Rulemaking | Adopt regulations (Title 11 NYCRR) |
| Enforcement | Investigate and prosecute violations |
| Rate Review | Review and approve insurance rates |
| Consumer Protection | Handle complaints and protect policyholders |
| Market Conduct | Examine insurer business practices |
NY Insurance Law
New York insurance law is found in the NY Insurance Law and Title 11 NYCRR (regulations). These contain:
- Licensing requirements for producers and insurers
- Policy standards and required provisions
- Consumer protections and disclosure requirements
- Prohibited practices and penalties
- Claims handling requirements
Exam Tip: The Superintendent of Financial Services is APPOINTED by the Governor in New York (not elected). This is a key difference from some other states.
DFS Organization
DFS operates through several divisions:
- Insurance Division - Regulates insurance companies and producers
- Life Bureau - Oversees life insurance and annuities
- Health Bureau - Regulates health insurance
- Consumer Protection - Handles consumer complaints
- Licensing Bureau - Manages producer licensing
How is the New York Superintendent of Financial Services selected?
When was the New York Department of Financial Services created?