Under Arizona insurance law, which of the following best describes an insurance producer?

Why A is correct

Under A.R.S. 20-281(5), a producer is a person required to be licensed to sell, solicit, or negotiate insurance. The definition turns on the insurance-marketing activity, so claims processors and underwriting departments are not producers, and merely receiving money is not enough without the selling role.

Why the other options are wrong

• B) Wrong because claims processing is not selling, soliciting, or negotiating insurance; a claims employee is not a producer under A.R.S. 20-281(5).
• C) Wrong because underwriting is an insurer function, not the producer activity defined at A.R.S. 20-281(5).
• D) Wrong because receiving commissions does not make someone a producer; under A.R.S. 20-298 only licensed producers may lawfully be paid commissions for selling.

Memory hook

Producer = licensed seller: sell, solicit, or negotiate.

Why D is correct

Arizona insurance law, at A.R.S. 20-281, defines a producer as a person — an individual or business entity — licensed to sell, solicit, or negotiate insurance; licensure is the defining element of the term.

Why the other options are wrong

• A) Insurer employees are not producers unless licensed to sell, solicit, or negotiate insurance.
• B) The term covers any licensed individual or entity, not only agency owners.
• C) Underwriting and actuarial officers are insurer personnel, not producers, unless separately licensed and selling.

Memory hook

Producer = licensed to sell, solicit, negotiate — 20-281.