A producer in Tucson urges a prospect to complete an application for a health policy, but the prospect never buys. Under A.R.S. 20-281(15), has the producer engaged in an insurance transaction?

Why C is correct

A.R.S. 20-281(15) defines solicitation as attempting to sell insurance or asking or urging a person to apply for insurance. The urging itself is the transaction, so a license is required even if no policy is issued and no premium ever changes hands.

Why the other options are wrong

• A) The transaction occurs at solicitation; collecting a premium is not required under A.R.S. 20-281(15).
• B) Policy issuance is irrelevant to solicitation under A.R.S. 20-281(15).
• D) The prospect's state of mind does not matter; the producer's urging to apply is the trigger.

Memory hook

The ask is the act: urging an application is solicitation under A.R.S. 20-281(15).

Why B is correct

A.R.S. 20-281(15) defines soliciting as attempting to sell or negotiate insurance, including asking or urging a prospective purchaser to apply for a particular kind of insurance. The act is complete in the asking itself — no application, premium, or policy is needed for solicitation to have occurred, which is why unlicensed canvassing is still transacting insurance.

Why the other options are wrong

• A) Wrong because delivering an issued policy is part of selling under A.R.S. 20-281(14), not the purchaser-directed urging that defines soliciting.
• C) Wrong because receiving a commission is a compensation event, not the attempt to sell that A.R.S. 20-281(15) defines as soliciting.
• D) Wrong because examining and rating an application is an insurer underwriting function, not solicitation under A.R.S. 20-281(15).

Memory hook

Solicit = the ask itself — urge an application and you have solicited.