State RegulationsAZ specificDifficulty 1/5
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?
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Answer & full 3-part explanation (select an option above, or peek)
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).