State RegulationsAZ specificDifficulty 1/5
After a hearing, the Director decides to suspend an Arizona producer's license rather than revoke it. What is the longest suspension period the Director may impose?
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Answer & full 3-part explanation (select an option above, or peek)
Why B is correct
Under Arizona insurance law, the Director may suspend a producer's license for a period of not more than 12 months, or may revoke the license entirely, through the disciplinary process under A.R.S. 20-295. Anything beyond a year crosses into revocation territory, which is why the suspension option is capped at 12 months.
Why the other options are wrong
- A) Wrong because the statutory maximum suspension is longer than 6 months; the Director may suspend for up to 12 months under A.R.S. 20-295.
- C) Wrong because 2 years exceeds the suspension cap; a suspension may not run longer than 12 months under A.R.S. 20-295.
- D) Wrong because 4 years is the length of a full license renewal term, not a permissible suspension length under A.R.S. 20-295.
Memory hook
Suspension tops out at 12 months — beyond that, the Director revokes instead.