State RegulationsAZ specificDifficulty 1/5
An Arizona producer completes a Medicare supplement application and charges the applicant a service fee in addition to the policy premium. Under Arizona law, this fee is:
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Answer & full 3-part explanation (select an option above, or peek)
Why C is correct
A.R.S. 20-465(D) provides that a producer may not charge a fee in addition to the premium for Medicare supplement policies, regardless of disclosure, the producer's experience, or the size of the fee.
Why the other options are wrong
- A) Disclosure does not authorize a fee that A.R.S. 20-465(D) prohibits for Medicare supplement policies.
- B) Administrative cost recovery is not an exception to the fee prohibition for Medicare supplement policies.
- D) Licensing tenure is irrelevant; the fee prohibition applies to every producer.
Memory hook
Med supp plus an extra fee — no way under 20-465(D).