State RegulationsAZ specificDifficulty 2/5
An Arizona business entity wants to transact life insurance. Under Arizona law, the entity must:
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
A.R.S. 20-285(C) and (D) require a business entity licensed in Arizona to designate one individually licensed producer for each line of authority the entity transacts, anchoring the entity's authority to a licensed individual.
Why the other options are wrong
- B) Only the designated producer per line must be individually licensed; every employee need not hold a license.
- C) Entity licensing is by line of authority, not by client.
- D) Residency outside Arizona is not a requirement; the requirement is a designated, individually licensed producer per line.
Memory hook
One licensed human per line — 20-285(C),(D).