State RegulationsAZ specificDifficulty 2/5
A producer holds an Arizona license with only an accident and health line of authority. A client in Gilbert asks him to sell a life insurance policy. What may the producer do?
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Answer & full 3-part explanation (select an option above, or peek)
Why B is correct
Under the line-of-authority framework of A.R.S. 20-286, a producer may sell only the products his lines of authority cover. An accident and health line does not authorize life sales, so the producer must qualify for and obtain the life line of authority before selling the policy — ethics coursework or insurer permission does not substitute for the license line.
Why the other options are wrong
- A) Wrong because an ethics course is a continuing education topic, not a substitute for the life line of authority required to sell life policies.
- C) Wrong because the accident and health line does not cover life products; selling outside the line violates Arizona licensing law.
- D) Wrong because insurer permission cannot expand a producer's license; only the Arizona Department of Insurance and Financial Institutions grants lines of authority.
Memory hook
Health-only license, no life sales — get the line first.