State RegulationsAZ specificDifficulty 1/5
A Mesa life producer offers to return part of the first-year premium to a prospective policyholder as an inducement to purchase a life policy. Under Arizona law, this practice is known as:
Select an option to reveal the answer and the full 3-part explanation — free, no signup.
Answer & full 3-part explanation (select an option above, or peek)
Why B is correct
Under A.R.S. 20-449, offering or giving any rebate of premiums payable on a life or disability policy, or any special favor or advantage not specified in the policy, as an inducement to purchase is prohibited rebating. The producer faces discipline by the Director for the offer itself, even if the sale never closes.
Why the other options are wrong
- A) Twisting involves inducing policy replacement through misrepresentation, not returning premium to induce a sale.
- C) Defamation under A.R.S. 20-445 is disparaging a competitor, not sharing premium with a prospect.
- D) Coercion under A.R.S. 20-446 involves pressuring insurers or producers, not offering premium incentives to buyers.
Memory hook
Cash back to close = rebate — 20-449 says no.