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State RegulationsAZ specificDifficulty 2/5

The Arizona Department of Insurance and Financial Institutions reviews a producer's files and finds annuity sales made before the producer completed any annuity training. Under A.R.S. 20-1243.07, this means the producer:

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Answer & full 3-part explanation (select an option above, or peek)

Why B is correct

Under A.R.S. 20-1243.07, completing the one-time annuity training course is a statutory precondition to selling, soliciting, or negotiating annuities. Sales made before the course was completed show the producer transacted annuity business in violation of that precondition, exposing the producer to discipline by the Director for transacting without the required training.

Why the other options are wrong

  • A) The training requirement is mandatory statute, not optional guidance, and selling before completing it is a violation.
  • C) Backfilling the training by the next renewal does not cure transactions that occurred before the precondition was met.
  • D) Completing the course after the audit does not erase the earlier violations; the precondition had to precede the sales.

Memory hook

Sales before study equals violation — the training gate comes first.

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