State RegulationsAZ specificDifficulty 2/5
A company in Arizona wants to distribute insurance through vending machines. Under A.R.S. 20-293, when may insurance be sold through vending machines?
Select an option to reveal the answer and the full 3-part explanation — free, no signup.
Answer & full 3-part explanation (select an option above, or peek)
Why C is correct
Under A.R.S. 20-293, insurance may be sold through vending machines only as the statute and applicable rules permit. The channel is not banned outright, but neither is it a free-for-all: whatever is dispensed must fit within the conditions the Arizona Department of Insurance and Financial Institutions has established.
Why the other options are wrong
- A) Wrong because A.R.S. 20-293 contemplates permitted vending machine sales; the channel is conditioned, not absolutely prohibited.
- B) Wrong because payment method is irrelevant; sales are governed by the statutory conditions of A.R.S. 20-293, not left unrestricted.
- D) Wrong because A.R.S. 20-293 does not limit vending machine sales to life policies sold to existing policyowners; the limits are those set by statute and rule.
Memory hook
Vending machines sell insurance only as the law permits.