State RegulationsAZ specificDifficulty 1/5
Under Arizona insurance law, which of the following best describes an insurance producer?
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Answer & full 3-part explanation (select an option above, or peek)
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.