State RegulationsAZ specificDifficulty 1/5
Under Arizona's unfair claims settlement practices statute, when does an act by an insurer constitute a violation of the unfair trade practices article?
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Answer & full 3-part explanation (select an option above, or peek)
Why B is correct
A.R.S. 20-461 provides that the enumerated unfair claims settlement practices violate the article only when committed with such frequency as to indicate a general business practice. This frequency standard means an isolated lapse does not itself create a violation of the article.
Why the other options are wrong
- A) A claimant complaint does not change the frequency standard that A.R.S. 20-461 requires.
- C) The general-business-practice frequency standard means a single act is not itself a violation of the article.
- D) The statute contains no claim-size trigger; the frequency standard controls.
Memory hook
Once is an oops; a pattern is a violation — that is 20-461.