State RegulationsAZ specificDifficulty 2/5
A producer licensed in both Arizona and another state learns that the other state's insurance regulator has suspended her license there. Under Arizona law, what must she do?
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Answer & full 3-part explanation (select an option above, or peek)
Why D is correct
Under A.R.S. 20-301, a producer must report to the Director of the Arizona Department of Insurance and Financial Institutions any regulatory or licensing action taken against the producer in another jurisdiction. The duty of disclosure rests on the licensee herself, so she cannot wait for the other state or for an Arizona investigation to surface the suspension. Failing to self-report can itself jeopardize her Arizona license.
Why the other options are wrong
- A) Wrong because the duty to report arises from A.R.S. 20-301 as soon as an action is taken against the producer; it does not depend on Arizona opening its own file first.
- B) Wrong because A.R.S. 20-301 is not satisfied by waiting for renewal; the report must be made when the action occurs, not deferred to a renewal disclosure.
- C) Wrong because the reporting obligation is the producer's own under A.R.S. 20-301; the producer cannot shift that statutory duty to another state's regulator.
Memory hook
Action in another state? Tell DIFI yourself — the report of actions is on you.