State RegulationsAZ specificDifficulty 2/5
Examiners from the Arizona Department of Insurance and Financial Institutions arrive to examine a Scottsdale insurer's books and accounts. What must the insurer do?
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Answer & full 3-part explanation (select an option above, or peek)
Why D is correct
A.R.S. 20-157 and A.R.S. 20-290 require insurers to make their accounts, records, and documents available to the Director for examination. The insurer cannot filter what the examiners see, stall for a court order, or charge for access; cooperation with a Department examination is a statutory obligation, and refusing it invites enforcement action.
Why the other options are wrong
- A) Wrong because summaries prepared by the insurer's own accountants do not satisfy the examination right; the Director examines the underlying records under A.R.S. 20-157.
- B) Wrong because the examination authority exists by statute and does not wait for a court order; access must be given under A.R.S. 20-157 and A.R.S. 20-290.
- C) Wrong because the insurer may not charge the Department for examining records that A.R.S. 20-157 and A.R.S. 20-290 entitle the examiners to review.
Memory hook
Examiners at the door? Open the books — access is the law.