State RegulationsAZ specificDifficulty 2/5
Which agency enforces Arizona's unfair trade practices laws against insurers and producers engaged in the insurance business?
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Answer & full 3-part explanation (select an option above, or peek)
Why D is correct
The Arizona Department of Insurance and Financial Institutions, acting through the Director, enforces Arizona's unfair trade practices article, including A.R.S. 20-442 and the specific prohibitions that follow it. The Director may investigate, issue cease and desist orders under A.R.S. 20-292, and pursue license discipline and civil penalties under A.R.S. 20-295 against violators.
Why the other options are wrong
- A) Wrong because the federal trade commission does not administer Arizona's insurance code; enforcement belongs to the Arizona Department of Insurance and Financial Institutions.
- B) Wrong because an insurer's compliance department is an internal control, not a public enforcement agency with power over A.R.S. 20-442 violations.
- C) Wrong because county attorneys prosecute crimes; they do not administer or enforce the state insurance unfair practices article.
Memory hook
DIFI polices the unfair practices article — the Director does the enforcing.