State RegulationsAZ specificDifficulty 1/5
Under A.R.S. 20-292, who has the authority to issue a cease and desist order to a person believed to be violating Arizona insurance laws?
Select an option to reveal the answer and the full 3-part explanation — free, no signup.
Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
A.R.S. 20-292 vests the cease-and-desist power in the Director of the Arizona Department of Insurance and Financial Institutions. The Director may order a person believed to be engaging in an unlawful insurance practice to stop the conduct, and continued violation of the order exposes the person to further administrative action. No county attorney, insurer board, or trade association holds this regulatory power.
Why the other options are wrong
- B) Wrong because county attorneys handle criminal prosecution; the cease and desist power under A.R.S. 20-292 belongs to the Director.
- C) Wrong because an insurer's board governs its own company only; it cannot issue regulatory orders under A.R.S. 20-292.
- D) Wrong because a professional association is a private trade group with no enforcement authority under A.R.S. 20-292.
Memory hook
Only the Director says 'cease and desist' — 20-292 is the Director's stop sign.