State RegulationsAZ specificDifficulty 2/5
A Phoenix insurer's investigator reports a suspected fraudulent life claim to the fraud unit of the Arizona Department of Insurance and Financial Institutions (DIFI) in good faith, but the suspicion later proves mistaken. Under Arizona law, the reporter is:
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
A.R.S. 20-463 grants immunity to good-faith reporters of suspected fraudulent insurance acts, so a mistaken but honest report carries no liability under Arizona law.
Why the other options are wrong
- B) Good-faith reporting is immune; being mistaken does not create defamation liability.
- C) Immunity does not depend on whether criminal charges ever follow the report.
- D) No civil penalty applies to reports made in good faith under A.R.S. 20-463.
Memory hook
Honest hunch, zero risk — 20-463 shields good-faith reporters.