State RegulationsAZ specificDifficulty 1/5
An insurer officer submits a financial statement to the Director with knowingly false entries about the company's reserves, intending to deceive the regulators. Under A.R.S. 20-447, this conduct is:
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Answer & full 3-part explanation (select an option above, or peek)
Why B is correct
A.R.S. 20-447 makes it an unfair trade practice to file or knowingly make false entries or statements about financial condition with intent to deceive. Falsified reserve figures mislead the Director about the insurer's solvency and squarely violate the statute.
Why the other options are wrong
- A) The intent to deceive is complete at filing; a later correction does not undo the violation of A.R.S. 20-447.
- C) Estimates are allowed only when honestly presented; knowingly false entries made to deceive are prohibited.
- D) A.R.S. 20-447 applies to false financial statements generally, not only to producer licensing matters.
Memory hook
Cook the reserve books, meet A.R.S. 20-447.