Arizona Laws And Regulations

Question 1

Unfair Trade Practice Penalties

Answer 1

Up to $1,000 for each act or violation, aggregate penalty $10,000 for all violations.

Up to $5,000 for each INTENTIONAL act or violation, $50,000 for all intentional violations in any 6 month period.

Question 2

Misrepresentation

Answer 2

Class 5 Felony
As an agent:
Issuing, circulating, making false estimates, illustrations about provisions, dividends, policy benefits/advantages, etc.

Question 3

Twisting

Answer 3

The illegal act of replacing an existing policy through some form of misrepresentation.

Illegal to misrepresent a policy to induce a policyholder to drop what he has. (False statements, confusing policy names, etc)

Question 4

Rebating

Answer 4

Nothing of value may be given to a prospect to induce purchase of a policy.

Illegal:

🔸Offering to rebate part of agent’s commission earned on the sale of the policy.
🔸Paying or offering to pay any part of the premium of a policy.
🔸Promising special favors

Question 5

Responding to Claims

Answer 5

🔸10 working days to acknowledge receipt of claim.
🔸Notify first party claimants within 15 working days to either accept or deny claim.
🔸15 days to respond to Dept of Insurance Inquiries

Keynote:
Claim not paid within 30 days/1 month after receipt of proof of loss then must pay interest on claims from the date submitted.

Question 6

Insurance Fraud

Answer 6

🔸Class 6 Felony

Civil penalty : $5,000 for each violation not including attorney fees/investigative costs, etc.

Question 7

Insurance Privacy

Answer 7

Notices must be given to applicants and policyholders. Notice must state the types and sources of personal information collected.

New insurance: must be provided BEFORE the insurer collects information from sources

Policy renewals: notice must be given annually

Question 8

Electronic Notices

Answer 8

Oral communication or on a recording like voice line along with electronic consent is needed before sending electronic notice deliveries.

Question 9

Violent Crime Control

Answer 9

🔸Punishments for engaging in prohibited activities :

1. Up to 15 years imprisonment and up to a $50,000 fine for each violation or the amount of compensation the person received or offered for prohibited conduct, whichever is greater.

Question 10

Bjnders

Answer 10

🔸Binders may be made orally or in writing

🔸Valid up to 90 days or the policy issue date, whichever period is shorter.

Question 11

Cancellation and Nonrenewal

Answer 11

Notice of nonrenewal based on property conditions must give an insured 30 days

Question 12

Notice of no renewal must be sent at least ________ days prior to the expiration date.

Answer 12

30 days

Question 13

Automobile Insurance

Uninsured and Underinsured Motorist Coverage Minimum Limits

Answer 13

🔸$15,000 bodily injury (BI) per person

🔸$30,000 bodily injury (BI) per accident

Question 14

Automobile Insurance

Notice of Cancellation and Nonrenewal

Answer 14

Notice of non renewal, cancellation, or reduction of coverage limits must be at least 10 days in advance of the effective date of action

45 days notice of nonrenewal is required if any one driver had 3 or more at fault accidents during the previous 36 months and PD in each accident exceeded state threshold.

Question 15

Minimum grace period of _____ days after premium due date

Answer 15

7 days

Question 16

Financial Responsibility Minimum Liability Limits

Answer 16

15/30/10

$15,000 bodily injury per person
$30,000 bodily injury per accident
$10,000 property damage per accident