State RegulationsAZ specificDifficulty 1/5
Under A.R.S. 20-281(10), which description best defines 'negotiating' insurance?
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
A.R.S. 20-281(10) defines negotiating as acting as an intermediary between the applicant and the insurer for the purpose of effecting an insurance contract. A producer who carries information between the parties and helps the contract come together is negotiating, and must be licensed to do so in Arizona.
Why the other options are wrong
- B) Delivering the policy and collecting the initial premium is part of selling under A.R.S. 20-281(14).
- C) Urging a person to apply for coverage is solicitation under A.R.S. 20-281(15).
- D) Filing claim forms is policyholder service, not the intermediary role that defines negotiating.
Memory hook
Negotiate = the go-between: applicant on one side, insurer on the other.