An Arizona producer applying for life settlement broker authority holds a license with more than two years remaining. What fee applies to the settlement broker authority, and how does it differ when less than two years remain?

Why B is correct

Under A.R.S. 20-3202, the life settlement broker authority fee is $500 for a new license or when two or more years remain on the license, and $250 when less than two years remain.

Why the other options are wrong

• A) This reverses the two fee tiers established in A.R.S. 20-3202.
• C) The flat $500 reading ignores the reduced fee for licenses with less than two years remaining.
• D) The flat $250 reading ignores the standard $500 fee for new licenses and longer remaining terms.

Memory hook

Two years or more left pays $500; under two pays $250.

Why D is correct

Under A.R.S. 20-3202, the settlement broker authority fee is five hundred dollars for a newly licensed producer or one with at least two years remaining on the license; the reduced two-hundred-fifty-dollar fee applies only when less than two years remain. The fee is separate from the standard producer license fee and is keyed to how much licensed time the applicant has ahead.

Why the other options are wrong

• A) Wrong because one hundred twenty dollars is the standard producer license fee per class, not the settlement broker authority fee under A.R.S. 20-3202.
• B) Wrong because two hundred dollars is the rebate-incentive ceiling under A.R.S. 20-449 and has nothing to do with settlement broker authority fees.
• C) Wrong because the two-hundred-fifty-dollar fee under A.R.S. 20-3202 applies only when fewer than two years remain on the license, not to a new license.

Memory hook

New or long-dated license? Settlement authority runs five hundred.

Why D is correct

Under A.R.S. 20-3202, the settlement broker authority fee is $500 for a new license or one with two years or more remaining, but only $250 when less than two years remain on the producer's license. The producer in this scenario falls in the reduced-fee tier.

Why the other options are wrong

• A) The $500 fee applies only to a new license or one with two years or more remaining.
• B) $120 is the license fee per license class under Arizona licensing rules, not the settlement broker authority fee.
• C) $200 is the incentive/feedback reward ceiling under A.R.S. 20-449, not a fee.

Memory hook

Two years or more pay $500; under two, $250.