State RegulationsAZ specificDifficulty 1/5
Under Arizona law, which entity must report suspected fraudulent claims to the insurance fraud unit operated by the Arizona Department of Insurance and Financial Institutions (DIFI)?
Select an option to reveal the answer and the full 3-part explanation — free, no signup.
Answer & full 3-part explanation (select an option above, or peek)
Why B is correct
Under A.R.S. 20-466 and 20-466.01, DIFI maintains an insurance fraud unit, and insurers are required to report suspected fraudulent claims to it so the unit can investigate fraudulent insurance acts.
Why the other options are wrong
- A) The statutory reporting duty runs to insurers, not to treating physicians.
- C) The attorney general enforces civil fraud penalties under A.R.S. 20-466.02; the reporting duty belongs to insurers.
- D) The reporting duty is imposed on insurers, not individually on the producer who wrote the policy.
Memory hook
Insurers feed the DIFI fraud unit — that is the 20-466 pipeline.