State RegulationsAZ specificDifficulty 2/5
During a market-conduct examination in Phoenix, a producer knowingly enters false figures in an insurer's financial statement with intent to deceive the Director of the Arizona Department of Insurance and Financial Institutions (DIFI). Which unfair trade practice has the producer committed?
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Answer & full 3-part explanation (select an option above, or peek)
Why C is correct
Under A.R.S. 20-447, a person may not knowingly make, publish, or circulate false entries or statements about an insurer's financial condition with intent to deceive. Falsified records surfaced in a DIFI examination expose the producer to license discipline and civil penalties, and the intent-to-deceive element separates this practice from an honest reporting error.
Why the other options are wrong
- A) Defamation under A.R.S. 20-445 concerns disparaging a competitor's financial condition, not filing false records with the regulator.
- B) Boycott, coercion, and intimidation under A.R.S. 20-446 involve concerted pressure against insurers or producers, not falsified accounting entries.
- D) Unfair discrimination under A.R.S. 20-448 concerns unequal treatment of individuals of the same class, not deceptive financial records.
Memory hook
Fake books = false financial statements under 20-447.