State RegulationsAZ specificDifficulty 2/5
Following a hearing, the Director finds that an Arizona producer intentionally violated the state's unfair-practice provisions in a life insurance sale. What is the maximum civil penalty per violation that may be imposed under A.R.S. 20-295(F)?
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Answer & full 3-part explanation (select an option above, or peek)
Why B is correct
Under A.R.S. 20-295(F), the Director may impose a civil penalty of not more than $250 per unintentional violation (aggregate $2,500) or $2,500 per intentional violation (aggregate $15,000), and restitution to the injured party may also be ordered. Because the violation here is intentional, the $2,500 per-violation cap is the applicable ceiling.
Why the other options are wrong
- A) $250 is the per-violation cap for UNINTENTIONAL violations under A.R.S. 20-295(F), not intentional ones.
- C) $5,000 is the civil penalty the attorney general may recover per fraud violation under A.R.S. 20-466.02, a separate provision from producer discipline.
- D) $15,000 is the aggregate cap for intentional violations under A.R.S. 20-295(F), not the amount per violation.
Memory hook
Intentional? Think $2,500 each; sloppy? $250 each — 20-295(F) keeps the tiers apart.