State RegulationsAZ specificDifficulty 1/5
Under A.R.S. 20-444, which of the following is prohibited in Arizona?
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
A.R.S. 20-444 prohibits making, publishing, or circulating false or misleading statements about insurance for the purpose of inducing a person to purchase a policy. The statute protects Arizona consumers from deception in the marketplace, and violations expose the producer or insurer to enforcement by the Director of the Arizona Department of Insurance and Financial Institutions.
Why the other options are wrong
- B) Wrong because truthful comparisons of policy features are legitimate competition; A.R.S. 20-444 reaches only false or misleading statements.
- C) Wrong because naming the home office city is ordinary advertising content and violates nothing in A.R.S. 20-444.
- D) Wrong because distribution through licensed producers is the normal, lawful way policies reach the market.
Memory hook
20-444: no false or misleading statements to sell a policy.