State RegulationsAZ specificDifficulty 2/5
Under Arizona's report-of-actions requirement, which of the following must an Arizona producer report to the Director?
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Answer & full 3-part explanation (select an option above, or peek)
Why C is correct
A.R.S. 20-301 reaches actions taken against the producer outside Arizona as well as at home: licensing and administrative actions in other jurisdictions must be reported to the Director of the Arizona Department of Insurance and Financial Institutions. The provision exists so that discipline imposed anywhere follows the producer to Arizona, giving the Director a complete picture of the producer's regulatory history.
Why the other options are wrong
- A) Wrong because A.R.S. 20-301 concerns actions taken elsewhere that Arizona would not otherwise see; Arizona already knows about its own disciplinary actions.
- B) Wrong because the report-of-actions requirement is not limited to criminal convictions and is not limited to Arizona courts; administrative and licensing actions must be reported.
- D) Wrong because ordinary customer complaints, without any regulatory or administrative action, are not what A.R.S. 20-301 requires a producer to report.
Memory hook
Any jurisdiction, any action — if regulators moved against you, DIFI hears about it.