State RegulationsAZ specificDifficulty 1/5
Under A.R.S. 20-295(F), what is the maximum civil penalty the Director may impose on a producer for a single unintentional violation of the insurance laws?
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
A.R.S. 20-295(F) sets a two-tier civil penalty structure: for an unintentional violation the Director may order a penalty of not more than $250 per violation, subject to an aggregate cap of $2,500. The higher figures belong to the intentional-violation tier, so a careless or negligent violation is treated far more leniently than a knowing one.
Why the other options are wrong
- B) Wrong because $2,500 per violation is the intentional-violation tier under A.R.S. 20-295(F), not the unintentional tier.
- C) Wrong because $5,000 per violation is the fraud-related civil penalty figure under A.R.S. 20-466.02, not the unintentional-violation penalty in A.R.S. 20-295(F).
- D) Wrong because $15,000 is the aggregate cap for intentional violations under A.R.S. 20-295(F), not the per-violation unintentional penalty.
Memory hook
Careless slip? $250. Intentional? Ten times that. Keep the tiers apart.