State RegulationsAZ specificDifficulty 2/5
A producer fails to report an administrative action taken against her in another jurisdiction, and the Arizona Department of Insurance and Financial Institutions later discovers it. What exposure does the producer face?
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Answer & full 3-part explanation (select an option above, or peek)
Why B is correct
Under A.R.S. 20-301, the duty to report actions taken in other jurisdictions belongs to the producer, and failing to discharge it is itself a violation that exposes the producer to discipline in Arizona. The out-of-state action need not be a revocation, and Arizona disciplines the concealment regardless of what the other state did.
Why the other options are wrong
- A) Wrong because Arizona can and does discipline producers for failing to report out-of-state actions under A.R.S. 20-301.
- C) Wrong because the reporting duty is not limited to revocations; suspensions and other administrative actions must be reported too.
- D) Wrong because A.R.S. 20-301 places the reporting duty on the producer, not on the other state's regulator.
Memory hook
Hide an action, add a violation — the report itself is the duty.