State RegulationsAZ specificDifficulty 1/5
Under Arizona law, may a producer charge a fee in addition to the premium when selling a Medicare supplement policy?
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Answer & full 3-part explanation (select an option above, or peek)
Why C is correct
Arizona law — A.R.S. 20-465(D) — prohibits a producer from charging any fee in addition to the premium on a Medicare supplement policy. Producer compensation must come through the commission structure, not through added fees, regardless of written disclosure, the fee's size, or the buyer's enrollment history.
Why the other options are wrong
- A) Written disclosure does not cure the problem; the statute flatly prohibits added fees on Medicare supplement sales.
- B) No reasonableness standard authorizes added fees; A.R.S. 20-465(D) contains no commission-comparison exception.
- D) The buyer's enrollment history is irrelevant; the fee prohibition applies to every Medicare supplement sale.
Memory hook
Medigap sales: premium only — no added fees, ever.