State RegulationsAZ specificDifficulty 1/5
Under A.R.S. 20-442 and A.R.S. 20-443, which of the following is an unfair method of competition or deceptive act in the business of insurance?
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
A.R.S. 20-442 declares it an unfair trade practice to engage in unfair methods of competition or unfair or deceptive acts in the business of insurance, and A.R.S. 20-443 identifies misrepresentation of policy benefits among those prohibited acts. Misstating what a policy pays is a deceptive act subject to discipline by the Director.
Why the other options are wrong
- B) Honest, accurate comparison of published information is legitimate competition, not deception.
- C) Filing required information with DIFI is regulatory compliance, not an unfair trade practice.
- D) Paying a commission to a licensed producer is expressly permitted under A.R.S. 20-298.
Memory hook
Say what the policy really pays — 20-442 and 20-443 police the deceptive pitch.