State RegulationsAZ specificDifficulty 3/5
An insurer resolves one disputed claim in Phoenix by making a statement known to be misleading, then engages in nothing similar for the next three years. A claimant sues under Arizona's unfair claims practices article. What is the likely result?
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 A is correct
A.R.S. 20-461 keys liability to frequency indicating a general business practice; one isolated misleading statement with no pattern over the following years does not establish the required general business practice, so the article is not violated.
Why the other options are wrong
- B) Even enumerated prohibited acts do not create article liability unless committed with the required frequency.
- C) The Department does not presume a general business practice from a single complaint or occurrence.
- D) Misleading statements are enumerated unfair practices; the correct ground for no liability is the frequency standard.
Memory hook
One bad act, no pattern — 20-461 lets it slide.