State RegulationsAZ specificDifficulty 2/5
A person in Tucson wants to begin soliciting and selling life insurance to the public. Under A.R.S. 20-282, what must the person obtain before conducting these activities?
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
A.R.S. 20-282 prohibits a person from acting as, or holding out as being, an insurance producer unless properly licensed. Because soliciting and selling are acts of transacting insurance under A.R.S. 20-281, the Tucson applicant must first obtain a producer license from the Arizona Department of Insurance and Financial Institutions. Conducting those acts unlicensed exposes the person to administrative action, including cease and desist orders under A.R.S. 20-292.
Why the other options are wrong
- B) Wrong because county recorder registration is a land-records function, unrelated to insurance licensing under A.R.S. 20-282.
- C) Wrong because a trade association endorsement is a private credential that cannot substitute for the state license required by A.R.S. 20-282.
- D) Wrong because producers are licensed by Arizona, not federally chartered; A.R.S. 20-282 requires the state license.
Memory hook
No license, no soliciting — 20-282 shuts the door until DIFI says yes.