State RegulationsAZ specificDifficulty 2/5
When transacting insurance with a consumer in Arizona, what must a producer do regarding license status under A.R.S. 20-229?
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Answer & full 3-part explanation (select an option above, or peek)
Why B is correct
Under A.R.S. 20-229, a producer must disclose license status and identification when transacting insurance. Consumers are entitled to know they are dealing with a licensed producer, and the disclosure duty attaches in the transaction itself rather than on request or through paperwork filed only with an insurer.
Why the other options are wrong
- A) Wrong because A.R.S. 20-229 affirmatively requires disclosure when transacting; license status is not held back until a consumer complains to a regulator.
- C) Wrong because the statute calls for disclosure of license status and identification, not a physical display ritual at meetings.
- D) Wrong because the duty runs to consumers in transactions, not merely to paperwork furnished to the appointing insurer.
Memory hook
Say who you are — license status disclosed when transacting.