State RegulationsAZ specificDifficulty 1/5
A.R.S. 20-281 defines negotiating insurance. Which activity falls within that definition?
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Answer & full 3-part explanation (select an option above, or peek)
Why D is correct
A.R.S. 20-281(10) defines negotiating as conferring directly or indirectly with a prospective purchaser about the merits or advisability of a particular insurance policy, with the purpose of influencing the purchase decision. The definition is broad enough to cover indirect persuasion, so a person who steers a prospect's choice is negotiating even without handing over paperwork.
Why the other options are wrong
- A) Wrong because collecting premiums is not negotiating under A.R.S. 20-281(10); the definition centers on conferring with a prospective purchaser.
- B) Wrong because delivering a policy relates to selling, not negotiating; A.R.S. 20-281(10) focuses on persuasion before the purchase decision.
- C) Wrong because examining and rating an application is an insurer function, not the purchaser-directed conferring that A.R.S. 20-281(10) defines.
Memory hook
Negotiate = steer the purchase — talking merits with a prospect is 20-281(10).