State RegulationsAZ specificDifficulty 2/5
Under A.R.S. 20-1207, divisible surplus is apportioned:
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Answer & full 3-part explanation (select an option above, or peek)
Why C is correct
A.R.S. 20-1207 sets an annual rhythm for divisible surplus apportionment, with a start-by deadline at the end of the third policy year. Both the cadence and the deadline are statutory, so insurers cannot defer dividends to a single maturity event or stretch them to other administrative cycles.
Why the other options are wrong
- A) dividends are recurring, not a single maturity event.
- B) the four-year figure is the producer license term, unrelated to dividend cycles.
- D) the statute requires annual apportionment, not monthly.
Memory hook
Every year, starting by year three.