State RegulationsAZ specificDifficulty 2/5
In addition to civil penalties under A.R.S. 20-295(F), what additional remedy may the Director order against a producer whose violations caused consumers to suffer financial losses?
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Answer & full 3-part explanation (select an option above, or peek)
Why D is correct
A.R.S. 20-295(F) authorizes the Director not only to impose civil penalties but also to order restitution, requiring the producer to repay the consumers who were financially harmed by the violations. Penalties punish the misconduct; restitution makes the injured parties whole, and the Director may order both in the same disciplinary action.
Why the other options are wrong
- A) Wrong because restitution under A.R.S. 20-295(F) runs to the injured consumers, not to an appointing insurer.
- B) Wrong because the Director does not confiscate future commissions; the authorized remedies are penalties and restitution under A.R.S. 20-295(F).
- C) Wrong because restitution under A.R.S. 20-295(F) is ordered by the Director for harmed consumers and is not a tax assessment.
Memory hook
Penalty punishes, restitution repays — the Director can order both.