State RegulationsAZ specificDifficulty 3/5
To whom does Arizona's unfair trade practices law, beginning with A.R.S. 20-442, apply?
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Answer & full 3-part explanation (select an option above, or peek)
Why C is correct
Arizona's unfair trade practices article applies to persons engaged in the business of insurance, a scope that embraces both insurers and producers. A.R.S. 20-442 and its companion prohibitions were written to protect the public and honest competitors from unfair dealing by any participant in the insurance business, not just one category of licensee.
Why the other options are wrong
- A) Wrong because the law reaches beyond insurance companies; producers and others engaged in the business are covered by A.R.S. 20-442.
- B) Wrong because individual producers are not the only subjects; insurers are equally bound by Arizona's unfair practices prohibitions.
- D) Wrong because the law covers Arizona business participants generally, not merely out-of-state insurers; domestic insurers and producers are squarely included.
Memory hook
Anyone in the insurance business — insurer or producer — plays by Article 4's rules.