State RegulationsAZ specificDifficulty 3/5
A Mesa-based business entity holds an Arizona producer license covering both life and accident and health lines. Under A.R.S. 20-285(C) and (D), what must the entity do regarding individual licensure?
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Answer & full 3-part explanation (select an option above, or peek)
Why C is correct
Under A.R.S. 20-285(C) and (D), a business entity must designate at least one individually licensed producer for each line of authority the entity holds. The entity acts through licensed individuals, so a single designee cannot cover both the life and the accident and health lines unless that person actually holds both lines individually.
Why the other options are wrong
- A) Wrong because A.R.S. 20-285 requires one designated licensed producer per line, not individual licensure of every employee.
- B) Wrong because the designation is per line of authority under A.R.S. 20-285(C); one blanket designee does not satisfy the statute unless that person is individually licensed in each line.
- D) Wrong because the entity license alone is not enough; A.R.S. 20-285(C) requires designated individuals who are themselves licensed.
Memory hook
One licensed human per line — entities act through people.