State RegulationsAZ specificDifficulty 3/5
Which credential authorizes an insurance company itself, as distinguished from an individual producer, to transact insurance in Arizona?
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Answer & full 3-part explanation (select an option above, or peek)
Why C is correct
A.R.S. 20-217(A) provides that the certificate of authority is the credential an insurance company must hold to transact the business of insurance in Arizona. Individual human producers are licensed under A.R.S. 20-282, while the corporate entity is authorized by the certificate of authority issued by the Director of the Arizona Department of Insurance and Financial Institutions.
Why the other options are wrong
- A) Wrong because producer licenses under A.R.S. 20-282 authorize individuals, not the corporate insurer; the company needs a certificate of authority.
- B) Wrong because a temporary license under A.R.S. 20-286 is a limited individual credential tied to death, disability, military service, or the public interest, not corporate authorization.
- D) Wrong because appointment letters link a producer to a particular insurer; they do not authorize an insurance company to transact business under A.R.S. 20-217(A).
Memory hook
Company = certificate of authority; person = producer license. Keep the two straight.