State RegulationsAZ specificDifficulty 1/5
Under A.R.S. 20-447, making false entries in an insurer's books and records is:
Select an option to reveal the answer and the full 3-part explanation — free, no signup.
Answer & full 3-part explanation (select an option above, or peek)
Why C is correct
A.R.S. 20-447 prohibits false entries and statements in an insurer's books, records, and reports when they are made with intent to deceive. Because regulators and policyholders rely on those records to judge solvency and compliance, knowingly falsifying them strikes at the heart of the state's oversight and is enforceable by the Director.
Why the other options are wrong
- A) Wrong because intentionally false entries are not routine accounting; A.R.S. 20-447 prohibits them when made to deceive.
- B) Wrong because a reserve method is a legitimate actuarial choice, while a false book entry made to deceive violates A.R.S. 20-447.
- D) Wrong because Arizona's own statute governs; A.R.S. 20-447 reaches false entries in the insurer's books regardless of federal securities law.
Memory hook
Cook the books to deceive and 20-447 says prohibited.