State RegulationsAZ specificDifficulty 1/5
Before an insurance company may transact the business of insurance in Arizona, what must it obtain from the Director?
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
Under A.R.S. 20-217(A), an insurer must obtain a certificate of authority from the Director of the Arizona Department of Insurance and Financial Institutions before transacting insurance in this state. Transacting insurance without a certificate of authority is unauthorized business, and the company is subject to Director sanctions.
Why the other options are wrong
- B) A producer license is for individuals and business entities that sell insurance, not for insurers themselves.
- C) Rate filings and approvals are separate regulatory steps and do not authorize an insurer to do business.
- D) Corporate incorporation documents come from corporate filing processes, not from DIFI's insurance authority under A.R.S. 20-217(A).
Memory hook
Companies need a certificate of authority, not a producer license — A.R.S. 20-217(A).